North American equities futures show negligible change heading into Wednesday’s open following a crushing Brexit defeat for UK Prime Minister Theresa May, while investors look to gauge worries of stalling US-China trade negotiations, following comments from Washington’s top negotiator.
May had suffered the worst parliamentary defeat in UK history on Tuesday, when her proposed withdrawal agreement, which would have seen Britain exit the European Union in March, was defeated by 230 votes, including members of her own party.
The humiliating verdict triggered an immediate vote of no confidence by her opposition, which will be debated later today.
New York seemingly shrugged off the defeat for Theresa May’s Brexit deal around mid-afternoon with the US stock market recovering to push higher into the close.
The session ended with the S&P 500 positive, following its first back-to-back drop in January as earnings season paired with news of stimulus measures out of China propped up sentiment.
The S&P advanced +1.19% with Healthcare (+1.8%), Communication Services (+1.66%) and Technology (+1.5%) sectors leading the sweep higher.
These gains were slightly offset by Material (-0.66%) and Industrial (-0.31%) stocks, the only two benchmark sectors to end negative.
The Dow Jones Industrial Average rose +0.71%, while the Nasdaq Composite advanced a hefty +1.99%.
In today’s economic timetable, December Import and Export prices will be published at 8:30am ET.
On the earnings front, financial titans including Bank of America (BAC), Goldman Sachs (GS), Charles Schwab (SCHW), BlackRock (BLK) and US Bancorp (USB) are amongst the list of companies due to report their latest results before the opening bell.
TODAY’S TOP HEADLINES
Brexit: UK government braces for no-confidence vote after Brexit defeat. (CNBC)
The UK faces yet more political turmoil Wednesday as another vote in Parliament could topple the government and leave a leadership vacuum at a crucial point in the country’s history.
China & Economy: China just injected a record amount of money to stimulate its economy. (CNBC)
China’s central bank on Wednesday pumped a net 560 billion yuan ($83 billion) into its banking system, a record amount of money injected in one day, in a sign that the economy may be facing enormous stress.
ECONOMIC CALENDAR:
Today’s Economical Announcements
08:30AM – ★★☆ – Export Price Index (MoM) (Dec) (Previous: -0.9%)
08:30AM – ★★☆ – Import Price Index (MoM) (Dec) (Previous: -1.6%)
08:30AM – ★☆☆ – Retail Control (MoM) (Dec) (Previous: 0.9%)
10:30AM – ★★★ – Crude Oil Inventories (Previous: -1.680M)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks
First Data (FDC): [BUYOUT] Will be acquired by Fiserv in an all-stock deal with an equity value of $22 billion, or $22.74 per share.
Snap (SNAP): [GUIDANCE & NEWS] Said its 2018 fourth-quarter results are expecting to be near the top end of its previously reported guidance. Separately, the social media company announced that chief financial officer Tim Stone will be stepping down to pursue other opportunities.
PG&E (PCG): [NEWS] Is being removed from the S&P 500 index.
Nordstrom (JWN): [EARNINGS] Reported a 0.3 percent increase in comparable-store sales at its full-priced locations in November and December, less than expected. The stock has now been downgraded to “neutral” from “buy” at Goldman Sachs, which also removed it from its “Conviction Buy” list.
Bank of America (BAC): [EARNINGS] Reported quarterly profit of 70 cents per share, 7 cent a share above estimates. Revenue topped forecasts.
United Continental (UAL): [EARNINGS] Reported adjusted quarterly profit of $2.41 per share, beating the consensus estimate of $2.04 a share. Revenue topped forecasts.
Goldman Sachs (GS): [EARNINGS] Reported quarterly profit of $6.04 per share, well above the consensus estimate of $4.45 a share. Revenue beat forecasts.
BlackRock (BLK): [EARNINGS] Reported adjusted quarterly profit of $6.08 per share, below the consensus estimate of $6.27 a share. BlackRock also announced it was raising its dividend to $3.30 per share from $3.13.
Bank of New York Mellon (BK): [EARNINGS] Earned an adjusted 99 cents per share, 7 cents a share above forecasts. Revenue below estimates.
Salesforce.com (CRM): [NEWS] In talks to acquire privately held software developer ClickSoftware Technologies for about $1.5 billion, according to the Israeli financial news website Calcalist.
McDonald’s (MCD): [NEWS] McDonald’s lost its right to the trademark for “Big Mac” in a European Union ruling.
Verizon (VZ): [NEWS] Verizon will include subscriptions to Apple’s Apple Music service with some of its top-tier data plans.
Gannett (GCI): [NEWS] Is pursuing a purchase of digital publisher Gizmodo Media, according to The Wall Street Journal.
MOMENTUM STOCKS:
GAINERS: FRC, NFLX
LOSERS: GT, EIX, PCG, TLRD
TODAY’S IPOs:
None.