United States pre-market stock index futures were mixed heading into Tuesday’s open, as investors continued to favor robust US economic data over Washington-Beijing trade concerns, whilst looking ahead to a key speech from President Donald Trump.
The Wall Street bulls were made further rampant, late on Monday, after an unscheduled meeting between Donald Trump and Federal Reserve Chairman, Jerome Powell, reaffirmed the central bank’s signalling of a pause in near-term interest rate hikes.
Monday’s session drew close to a positive start to the week, with the S&P 500 up +0.7%, the benchmark now advancing for its fourth consecutive day, powered by Technology stocks (+1.6%) as investors eyed Alphabet’s (GOOGL: +2%) earnings results.
The Dow Jones Industrial Average ended positive +0.73%, while the Nasdaq Composite rose +1.24%.
Tuesday’s session is set to be driven further by earnings, as the fourth-quarter earnings season arrives at its halfway mark, with more than 47% of companies listed on the S&P 500 already having reported their results thus far. Of those nearly 70% have posted better than expected earnings.
Today’s trading will be host to 125 major earnings releases, including; RL, EL, ARMK, ARRY, LITE, CDK, BDX, ADM, SBH, CNC, CTLT and CHD before market open.
While; FOXA, DIS, EA, ALL, SAVE, SWKS, ARLO, CB, APC, PAA, DOX, NBIX, UGI, CERN, DLR, VOYA, PAGP and UNM are scheduled to report after the closing bell.
Investors will also await tonight’s State of the Union, the annual presidential address in which Donald Trump is expected to highlight his legislative agenda for the year.
In today’s economic data front, investors are likely to monitor services PMIs and ISM Non-Manufacturing numbers due at 9:45am EST and 10am EST, respectively.
TODAY’S TOP HEADLINES:
Politics: Trump’s State of the Union Expected to Underscore Political Rancor. (Bloomberg)
Donald Trump’s second State of the Union promises to be one of the most dramatic moments in recent memory for the annual address to Congress.
The president will speak Tuesday evening to a House chamber full of Democrats jostling to challenge his re-election, with many female lawmakers planning to dress in suffragette white and his chief antagonist Nancy Pelosi seated at the dais behind him. The appearance will be shadowed by the threat of another government shutdown.
Brexit: Delaying the Brexit deadline could leave the UK with the upper hand. (CNBC)
With Westminster and Brussels seemingly trapped in a stalemate over Brexit negotiations, analysts told CNBC that an extension to talks could bring some benefits for the UK.
Today’s Economical Announcements
08:55AM – ★☆☆ – Redbook (YoY) (Previous: 5.8%)
08:55AM – ★☆☆ – Redbook (MoM) (Previous: -1.8%)
09:45AM – ★★☆ – Markit Composite PMI (Jan) (Previous: )
09:45AM – ★★☆ – Services PMI (Jan) (Previous: 54.2)
10:00AM – ★★★ – Non-Manufacturing PMI (Jan) (Previous: 58)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks
Estee Lauder (EL): [EARNINGS] Beat estimates by 19 cents a share, with adjusted quarterly profit of $1.74 per share. Revenue topped forecasts.
Seagate Technology (STX): [EARNINGS] Earned an adjusted $1.41 per share for its latest quarter, 14 cents a share above estimates. Revenue in line with forecasts.
Box (BOX): [RATING] Goldman Sachs initiated coverage on the stock with a “buy” rating, calling it one of the best-positioned vendors in cloud content management.
Church & Dwight (CHD): [EARNINGS] Earned 57 cents per share for its latest quarter, a penny a share shy of estimates. Revenue above forecasts.
Alphabet (GOOGL): [EARNINGS] Reported quarterly profit of $12.77 per share, beating the consensus estimate of $10.82 a share. Revenue also beat forecasts.
Archer-Daniels Midland (ADM): [EARNINGS] Came in 4 cents a share shy of estimates, with adjusted quarterly profit of 88 cents per share. Revenue shy of forecasts.
Centene (CNC): [EARNINGS] Reported adjusted quarterly profit of $1.38 per share, 6 cents a share above estimates. Revenue beat forecasts and Centene made upbeat comments about its 2019 outlook, noting increased membership and contract wins.
Gilead Sciences (GILD): [EARNINGS] Came in 26 cents shy of consensus forecasts, with adjusted quarterly profit of $1.44 per share. Revenue beat forecasts.
Booking Holdings (BKNG): [UPGRADE] Deutsche Bank upgraded the online travel services company to “buy” from “hold,” saying it sees acceleration in hotel room night bookings for 2019 among other positive factors.
Viacom (VIAB): [EARNINGS] Earned an adjusted $1.12 per share for its latest quarter, 9 cents a share above estimates. Revenue fell short of forecasts.
Pitney Bowes (PBI): [EARNINGS] Matched Street forecasts with adjusted earnings of 38 cents per share. Revenue above estimates.
WellCare Health (WCG): [EARNINGS] Beat estimates by 7 cents a share, with adjusted quarterly profit of $1.63 per share. Revenue beat estimates and WellCare also raised its full-year forecast.
Kraft Heinz (KHC): [DOWNGRADE] Downgraded to “hold” from “buy” at Deutsche Bank, which said although Kraft Heinz is showing overall improvement, store brands are making headway in many of Kraft Heinz’s largest categories.
Merck (NRK): [REVIEW] Bank of America added the drug maker’s stock to its “US 1” list, calling it the firm’s top pick in the pharmaceutical sector.
Johnson & Johnson (JNJ): [NEWS] In talks to settle most individual lawsuits involving its DePuy unit’s Pinnacle hip implants, according to a lawyer for the plaintiffs.
General Electric (GE): [NEWS] Said it would complete the merger of its transportation business with rail equipment manufacturer Wabtec by February 25.
T-Mobile US (TMUS): [NEWS] Told the Federal Communications Commission it would freeze most prices for three years if it gets approval for its proposed $26 billion buyout of wireless rival Sprint.
Apple (AAPL): [NEWS] Apple has reached a deal with France to pay an undisclosed amount of back taxes, according to the company’s French division. French media are reporting the sum at approximately $571 million.
GAINERS: SEND, SONO, LPLA, COUP
LOSERS: CNX, AGN
Wealthbridge Acquisition (HHHU) (Price: 10) (Shares: 5M)