North American equity futures traded higher this morning, on the final trading session of the month and quarter, amidst prevailed optimism with respect to a positive outcome at the G-20 summit US-China meeting in Osaka, Japan.
Trade will be the focus of the long-awaited 90-minute talk between President Donald Trump and his Chinese counterpart, Xi Jinping, as the US and China look to revive a budding agreement that collapsed in May, amid accusations of China's "backsliding" by the United States and allegations of "bullying” tactics by China.
Overnight, Trump issued a statement saying; while he hasn’t promised not to issue new tariffs on China he does think “at a minimum” Saturday’s meeting will be “productive”. Meanwhile, China’s state media warned against Trump’s “cheap tactics” and urged the US not to waste an opportunity for candid dialogue.
Nonetheless, this morning’s enthusiasm looks to help extend upon Thursday’s trading, where stocks ended the day higher, tracking early gains in European markets, as investors remained closely tuned into trade-talk related news-flow.
The S&P 500 closed the session +0.35% higher, while the tech-heavy Nasdaq Composite locked in gains of +0.38% at the closing bell.
In today’s economic calendar, Friday includes; Personal Income and Outlays for May at 8:30am EST, followed by a Chicago PMI figure for June at 9:45am EST, as well as Consumer Expectations and Sentiment data for June at 10am EST.
In corporate news; Constellation Brands (STZ) and JinkoSolar (JKS) are amongst the major companies scheduled to report their earnings today.
TODAY'S TOP HEADLINES
Politics: Trump, With a Smile, Tells Putin ‘Don’t Meddle in the Election’ (The WSJ)
President Trump called on Russian President Vladimir Putin to stay out of the 2020 presidential election. “Don’t meddle in the election, president,” Trump said with a bit of a smile as he sat next to Putin.
ECONOMIC CALENDAR
Today's Economical Announcements.
08:30AM - ★★☆ - C. PCE Price Index (MoM) (May) (Previous: 0.2%)
08:30AM - ★☆☆ - Personal Income (MoM) (May) (Previous: 0.5%)
08:30AM - ★★☆ - Personal Spending (MoM) (May) (Previous: 0.3%)
09:45AM - ★★☆ - Chicago PMI (Jun) (Previous: 54.2)
10:00AM - ★★☆ - Michigan Consumer Expect. (Jun) (Previous: 88.6)
10:00AM - ★★☆ - Michigan Consumer Senti. (Jun) (Previous: 97.9)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Constellation Brands (STZ): [EARNINGS] Reported adjusted quarterly profit of $2.21 per share, beating the $2.04 a share consensus estimate. Revenue also topped forecasts.
Nike (NKE): [EARNINGS] Reported quarterly earnings of 62 cents per share, 4 cents a share below estimates. Revenue beat forecasts, however. Nike’s bottom line was impacted by higher spending on marketing and new product launches.
Procter & Gamble (PG): [UPGRADE] Upgraded to “buy” from “neutral” at Goldman Sachs on expectations of stronger margins and profit growth.
Biogen (BIIB): [DOWNGRADE] Downgraded to “neutral” from “overweight” at Piper Jaffray, which cites competitive pressures for the drugmaker’s multiple sclerosis franchise.
Apple (AAPL): [NEWS] The company’s chief design officer Jony Ive is leaving the company to start his own independent design firm. Ive has been with Apple for since 1992.
Darden Restaurants (DRI), Wingstop (WING): [DOWNGRADE] Stephens downgraded both restaurant operators to “equal-weight” from “overweight,” in a move the firm calls “reluctantly downgrading quality” based on current valuation.
Boeing (BA): [NEWS] Boeing is attempting to have all 737 MAX-related fixes done by September.
Bank of America (BAC), Citigroup (C), JPMorgan Chase (JPM), Wells Fargo (WFC): [NEWS] Banks could get a boost today on news that they passed the Fed’s latest stress tests and did not receive objections to capital distribution plans.
United Continental (UAL): [NEWS] Is changing its name to United Airlines Holdings, effective today.
Live Nation Entertainment (LYV): [DOWNGRADE] Downgraded to “sell” from “neutral” at Citi, which likes the company’s consistent operating performance and growth prospects but feels investors are becoming too willing to pay a premium for growth.
Bloomin’ Brands (BLMN): [RATING] Deutsche Bank initiated coverage of the Outback Steakhouse parent with a “buy” rating, noting that the restaurant operator is cheap relative to its peers and can rise on any improvement in its profit margins.
AutoZone (AZO): [UPGRADE] Oppenheimer upgraded the auto parts retailer to “outperform” from “perform,” noting the potential of sustained strong commercial sales expansion.
MOMENTUM STOCKS
GAINERS: ZGNX, AXSM, PCG, FBP, NVCR, SUM
DECLINERS: CAG, GSKY, BA, CRCM
TODAY'S IPOs
Karuna Therapeutics (KRTX) (Price: 16) (Est. Vol: $89.2M)
Pivotal Investment (PIC.U) (Price: 10) (Est. Vol: $200.0M)
