United States stock index futures are modestly positive into Tuesday’s opening bell as a US decision to pursue criminal charges of fraud and IP theft against Chinese tech giant, Huawei, had investors on edge – fearing complications on the eve of key talks between US and Chinese negotiators on Wednesday in Washington.
It was US companies’ warnings in regards to China that sent the S&P lower on Monday, the benchmark ending in negative territory for the first time in four days, as investors turned cautious.
Semiconductors (-1.87%) were among the worst performers yesterday after Nvidia (NVDA: -13.83%) unexpectedly slashed its outlook for fourth-quarter revenues by half a billion dollars; joined by Industrial giant Caterpillar (CAT: -9.13%) in issuing disappointing guidance and blaming its poor prospects on faltering growth in China.
The S&P 500 finished -0.76% lower, with Technology (-1.33%) driving the market lower, accompanied by Communication Services, Healthcare and Industrial sectors, down close to -1% each.
These declines were only partially offset by Real Estate and Consumer Staples, the only two major sectors to finish in the black, up +0.91% and +0.42% respectively.
The Dow Jones and Nasdaq also saw declines, ending the session negative -0.93% and -1.24% respectively.
During today’s session investors will likely remain cautious ahead of the Federal Reserve’s first monetary policy meeting of the year, which kicks off today, with a decision to be announced on Wednesday.
In terms of today’s economic data, a Goods Trade Balance number is scheduled to be released at 8:30am EST, followed by Consumer Confidence data at 10am EST.
Today also marks a notable day for corporate data with; MMM, DHR, VZ, PFE, AGN, BIIB, HOG, EAT, KNX, HRS, AOS, XRX, ROK, CIT, DOV, GPK, HCA, PHM, PCAR, LLL, MTOR and PNR amongst the long list of companies scheduled to report their financials before market open.
While; AAPL, AMD, ALGN, HP, AMGN, EBAY, JNPR, RHI, VRTX, EGHT, ILMN, PKG, EQR, SYK, CHRW, KLAC, ESIO, PFG, TSS and MXIM are some of the major companies set to report after today’s close.
TODAY’S TOP HEADLINES:
Brexit: May Rips Up Divorce Plan to Keep Party United. (Bloomberg)
Theresa May has ripped up her Brexit plan in a bid to keep her party united and she faces key votes today that will put her plan B to the test. She’s backing an amendment that would give her a mandate to go back to Brussels to renegotiate her divorce deal.
China & Trade: China says US indictment against Huawei is ‘unfair’ and ‘immoral’. (CNBC)
A spokesman at China’s industry and information technology ministry said Tuesday that the U.S. government indictment against Huawei is “unfair” and “immoral,” Reuters reported.
Today’s Economical Announcements
08:30AM – ★★☆ – Goods Trade Balance (Nov) (Previous: -76.98B)
08:55AM – ★☆☆ – Redbook (MoM) (Previous: -1.5%)
08:55AM – ★☆☆ – Redbook (YoY) (Previous: 7.0%)
10:00AM – ★★★ – CB Consumer Conf. (Jan) (Previous: 10.1)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks
Harley-Davidson (HOG): [EARNINGS] Earned an adjusted 17 cents a share for its latest quarter, 11 cents a share shy of estimates. Revenues also came in short.
Whirlpool (WHR): [EARNINGS] Reported adjusted quarterly profit of $4.75 per share, beating the consensus estimate of $4.23 a share. Revenue came in below forecasts.
Xerox (XRX): [EARNINGS] Came in 10 cents a share above estimates, with adjusted quarterly profit of $1.14 per share. Revenue shy of forecasts.
Polaris Industries (PII): [EARNINGS] Beat estimates by a penny a share, with adjusted quarterly profit of $1.83 per share. Revenue fell below forecasts.
Pfizer (PFE): [EARNINGS] Beat estimates by a penny a share, with adjusted fourth-quarter profit of 64 cents per share. Revenue beat forecasts.
Verizon (VZ): [EARNINGS] Earnings came in 3 cents a share above estimates at an adjusted $1.12 per share, with revenue just shy of forecasts.
3M (MMM): [EARNINGS] Earned an adjusted $2.31 per share for the fourth quarter, 3 cents a share above estimates. Revenue beat forecasts.
AK Steel (AKS): [EARNINGS] Beat estimates by 5 cents a share, with adjusted quarterly profit of 16 cents per share. Revenue in line with forecasts.
Square (SQ): [DOWNGRADE] Downgraded to “underperform” from “market perform” by Raymond James, which thinks the mobile payments technology provider saw organic growth peak during its third quarter and that key metrics will show material deceleration this year.
PG&E (PCG): [NEWS] PG&E filed for Chapter 11 bankruptcy protection, as it deals with potential liabilities from wildfires in California in 2017 and 2018.
AT&T (T): [NEWS] AT&T plans to cut jobs in some of its weaker business units while hiring more workers in faster-growing areas, according to a Reuters report quoting a company spokesman.
Wynn Resorts (WYNN): [NEWS] Wynn executives ignored sexual misconduct complaints against former CEO Steve Wynn, according to a newly released report from the Nevada Gaming Control Board.
Intel (INTC): [NEWS] Intel will invest about $11 billion in a new Israeli semiconductor plant, according to the country’s finance minister.
Apple (AAPL): [NEWS] Apple said it would issue a software patch later this week to fix a bug involving its Facetime service.
MasterCard (MA): [RATING] Rated “outperform” in new coverage at Jefferies, benefiting from secular industry growth.
Visa (V): [RATING] Rated “outperform” in new coverage at Jefferies, benefiting from secular industry growth.
BlackRock (BLK): [UPGRADE] Upgraded to “buy” from “hold” at Jefferies, which said the asset management giant will benefit from favorable changes in investor behavior despite a volatile market backdrop.
GAINERS: VSM, COMM
LOSERS: GES, NVDA, CAT, ABBV, RMD
Andina Acquisition (ANDAU) (Price: 10) (Shares: 10M)