US equity futures rose, and international markets traded higher ahead of Monday’s open, after a series of Donald Trump’s tweets, from Sunday, cited “substantial progress” in bilateral talks between Washington and Beijing, including intellectual property protection and technology transfer issues.
As a result, the president announced a suspension of the March-scheduled levies, however did not state a new upcoming deadline.
Also conveyed in the tweets, Trump suggested he could hold a near-term meeting with Chinese President Xi Jinping at his Mar-a-Lago resort in Florida, as soon as next month, in order to conclude the negotiations.
It was last week’s warm hopes of a US-China trade deal, paired with positive commentary from the Federal Reserve about its balance sheet policy that helped US stocks finish higher on Friday – with the Dow Jones Industrial Average chalking up its longest weekly winning streak since 1995 (9-weeks).
President Donald Trump told reporters on Friday, it was more likely than not that a trade deal between the two countries would happen, and that the current deadline for the talks would be extended if he saw that progress was being made.
Buoyed by positive sentiment, the S&P 500 finished +0.62% higher (Perf Week: +1.73%), after nearly all of the benchmark’s sectors finished higher, with Technology and Telecommunications sectors up more than +1% each.
The Dow Jones, ended up +0.63%, gaining +1.96% for the week, while the Nasdaq Composite advanced +0.74%, taking its weekly gain to +0.98%.
In today’s economic calendar, Chicago Fed National Activity data for January is scheduled at 8:30am EST, followed by Wholesale Inventories data and the Dallas Fed Manufacturing Survey for February at 10am and 10:30am, respectively.
In earnings; McDermott International (MDR), Hertz Global Holdings (HTZ), Etsy (ETSY), Tenet Healthcare (THC) and Shake Shack (SHAK) are amongst the major companies expected to report their financials today.
TODAY’S TOP HEADLINES:
China & Trade: Trump says he will delay additional China tariffs originally scheduled to start on March 1. (CNBC)
The United States is planning to delay a menu of additional Chinese tariffs that were scheduled to begin on March 1, President Donald Trump announced on Sunday, as the world’s two largest economies hash out a definitive end to a wide-ranging trade dispute.
China & Trade: Trump Extends China Tariff Deadline After ‘Substantial’ Progress. (Bloomberg)
President Donald Trump said he’ll extend a deadline to raise tariffs on Chinese goods beyond this week, citing “substantial progress” in the latest round of talks that wrapped up Sunday in Washington.
ECONOMIC CALENDAR:
Today’s Economical Announcements
08:30AM – ★☆☆ – Chicago Fed National Activity (Jan) (Previous: 0.27)
10:00AM – ★☆☆ – Wholesale Invent. (MoM) (Dec) (Previous: 0.3%)
10:30AM – ★☆☆ – Dallas Fed Mfg Business Index (Feb) (Previous: 1.0)
11:00AM – ★★☆ – FOMC Member Clarida Speaks
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks
General Electric (GE): [NEWS] Announced the sale of its bio pharma drug unit to Danaher for $21.4 billion, including $21 billion in cash.
Spark Therapeutics (ONCE): [NEWS] Agreed to be bought by Switzerland’s Roche for $4.3 billion or $114.50 per share in cash. The price is more than double Spark’s Friday closing price of $51.56.
Norwegian Cruise Line (NCLH): [UPGRADE] Upgraded to “outperform” from “neutral” at Macquarie, which noted a reduce risk profile given strong bookings and the potential for a dividend later this year.
PG&E (PCG): [NEWS] The utility company will drop its plan to award $130 million in bonuses to employees, following protests from victims of California wildfires.
Qualcomm (QCOM): [NEWS] Rolled a series of 5G networking chips for a wide range of uses including cars and home broadband. The product announcements came at the Mobile World Congress event in Barcelona.
Twitter (TWTR): [NEWS] Co-founder Evan Williams is stepping down as a member of the board at the end of February. Williams said he wanted to focus his time on other projects.
Kraft Heinz (KHC): [NEWS] Kraft Heinz has hired Credit Suisse to review options for its Maxwell House coffee business, according to people familiar with the matter who spoke to CNBC.
Newmont Mining (NEM): [NEWS] Barrick Gold has made an all-stock offer to merge with its mining rival, following reports Friday that it was considering such a move.
Berkshire Hathaway (BRK.A): [EARNINGS] Reported quarterly profit of $2.32 per share, above the $1.85 a share consensus estimate. Revenue below forecasts. In his annual letter to shareholders, Berkshire’s Warren Buffett noted the difficulty in finding large acquisitions.
Caesars Entertainment (CZR): [NEWS] Caesars is in talks with Carl Icahn to offer him a role in selecting a new CEO for the casino operator, according to a Reuters report.
MOMENTUM STOCKS:
GAINERS: Z, ROKU, CAR, CPRT
LOSERS: KHC, TDS, DBX, CPB, EVRG
TODAY’S IPOs:
None.