New York equity futures were positive, pre-market on Friday, amid progress in US-China trade talks, and as Donald Trump decided to declare the US-Mexico border wall, a national emergency, after failing to obtain funding from Washington lawmakers.
Trump is due to speak on the matter in the White House Rose Garden at 10am EST, in what the White House has called the “national security and humanitarian crisis on our southern border”.
Today’s session will primarily look to gauge new developments between US-China trade, after a twin set of inflation data from Beijing, released earlier this morning, underscored both export and domestic demand in China to a 2016 low – The figures suggesting that Chinese economy may struggle to reverse last year’s broader slowdown.
The weakness in China followed data from the United States, released Thursday, which indicated the biggest fall in US monthly retail sales since September 2009, a reading that triggered significant markdowns in US economic growth forecasts.
These figures collectively added further pressure to US-China trade negotiations, which concluded today in Beijing, to which US Treasury Secretary, Steve Mnuchin, said; the takes have been “productive”.
The White House later confirming a new round of upcoming talks, while stating this week’s negotiations in China “led to progress between the two parties.”
It was these same disappointing US retail sales figures which revived growth concerns and saw Wall Street end Thursday’s session lower.
The S&P 500, which had declined as much as -0.8% earlier in the day, briefly turned positive before ending the day -0.22% lower, its first decline in five days.
Leading the declines were Financial and Consumer Staples shares, down -1.22% and -1.12% respectively, whose retreat was partially offset by advances in Energy (+0.35%) and Real Estate (+0.32%).
Proceeding into today’s session, corporate reports are expected today from; PepsiCo (PEP), Deere & Co. (DE), Newell Brands (NWL) and Moody’s (MCO).
In the economic calendar; US Import and Export Prices, Empire State Manufacturing Survey and Industrial Production data is scheduled at 8:30am EST, followed by a Michigan Consumer Sentiment figure at 10am EST.
TODAY’S TOP HEADLINES:
China & Trade: China and US will continue high-stakes trade talks in Washington next week. (CNBC)
Talks between China and the United States this week made important progress, President Xi Jinping told top U.S. trade negotiators on Friday, adding that efforts would continue in Washington next week to resolve their bruising trade war.
Politics: Congress passes bill to prevent another US government shutdown, sending it to Trump. (CNBC)
Congress passed legislation to avoid another government shutdown Thursday, moving to prevent one crisis even as the fight over President Donald Trump’s proposed border wall escalated.
Today’s Economical Announcements
08:30AM – ★★☆ – Export Price Index (MoM) (Jan) (Previous: -0.6%)
08:30AM – ★★☆ – Import Price Index (MoM) (Jan) (Previous: -1.0%)
08:30AM – ★★☆ – NY E.S. Manufacturing Index (Feb) (Previous: 3.90)
08:30AM – ★★☆ – Industrial Production (MoM) (Jan) (Previous: 0.3%)
10:00AM – ★★☆ – Michigan Consumer Sent. (Feb) (Previous: 91.2)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks
TrueCar (TRUE): [EARNINGS] Fell two cents short of estimates with adjusted quarterly profit of three cents per share, Revenue fell short of estimates.
Newell Brands (NWL): [EARNINGS] Beat estimates by four cents with adjusted quarterly profit of 71 cents per share, but sales were weaker than expected.
XPO Logistics (XPO): [EARNINGS] Came in eight cents shy of estimates with adjusted quarterly profit of 72 cents per share. Revenue short of estimates.
Nvidia (NVDA): [EARNINGS] Beat Wall Street forecasts by five cents with adjusted quarterly profit of 80 cents per share. Revenue came above estimates. It also forecast better than expected sales for 2019.
Caesars Entertainment (CZR): [NEWS] Caesars will be pushed by investor Carl Icahn to consider selling itself, according to the Wall Street Journal.
Deere (DE): [EARNINGS] Earned $1.54 per share for its first quarter, below the consensus estimate of $1.76. Revenue beat estimates, but the bottom line was hurt by higher costs for raw materials and logistics.
PepsiCo (PEP): [EARNINGS] Reported adjusted quarterly profit of $1.49 per share, matching Street forecasts. Revenue beat estimates. However, PepsiCo also forecast an unexpected drop in full-year profit, due to a stronger dollar and increased investments.
CBS (CBS): [EARNINGS] Reported adjusted quarterly profit of $1.50 per share, two cents below forecasts, while revenue was also short of estimates.
Applied Materials (AMAT): [EARNINGS] Reported adjusted quarterly profit of 81 cents per share, beating estimates by two cents. Revenue above forecasts. However, it issued weaker than expected profit and revenue guidance for the current quarter.
Oracle (ORCL): [NEWS] Berkshire Hathaway dissolved its stake in Oracle, according to its latest quarterly SEC filing.
Chemours (CC): [EARNINGS] Reported adjusted quarterly profit of $1.05 per share, beating estimates by six cents. Revenue missed forecasts. It also issued a weaker than expected 2019 earnings outlook.
Apple (AAPL): [NEWS] Berkshire Hathaway trimmed its stake in Apple, its largest holding, during the fourth quarter, according to its latest quarterly SEC filing.
Blackstone (BX): [NEWS] Blackstone and fellow US private equity firm Hellman & Friedman have offered to buy Germany’s Scout24 for $6.4 billion including debt.
GAINERS: YETI, BLMN, MRO, LSCC, R, NGL, HLT, RAMP
LOSERS: CTL, AIG, KO, CNSL
Hoth Therapeutics (HOTH) (Low: 5.50, High: 6.50) (Shares: 1.3M)
Stealth BioTherapeutics (MITO) (Low: 12, High: 14) (Shares: 6.2M)