Increasingly unpredictable flip-flops on US-China trade have left investors on edge this morning, with US index futures pointing to a negative open as optimism over a trade-resolution becomes difficult to sustain.
Both parties appear to be bracing for the worst, with the credibility of both leaders becoming a key impediment to a deal as the latest round of tariffs from each of the two countries presses forward; due to be staggered from September 1.
Wall Street reversed its early gains and fell for the third time in four days yesterday, as investors continued to assess conflicting signals on the trade war.
The benchmark S&P 500, which had been up as much as +0.7%, reversed those gains to end the session -0.39% lower. Utility stocks
(+0.18%) were amongst the day's leading gainers, who's advance was offset by losses in Energy (-0.62%) and Financial (-0.61%) sectors.
Ahead, in today’s economic calendar, Wednesday includes; Oil Inventories for the week ended Aug. 23 at 10:30am EST.
In earnings; Tiffany (TIF), Five Below (FIVE), Box (BOX), Williams-Sonoma (WSM), Coty (COTY), Okta (OKTA), Zuora (ZUO) and H&R Block (HRB) are amongst the major companies scheduled to report today.
TODAY'S TOP HEADLINES
Brexit: UK’s Boris Johnson Seeks Suspension of Parliament Ahead of Brexit. (Bloomberg)
Prime Minister Boris Johnson asked Queen Elizabeth II to suspend the UK Parliament from mid-September to mid-October, a move that could hamper lawmakers’ efforts to block a no-deal Brexit and even trigger a constitutional crisis.
Today's Economical Announcements.
10:30AM - ★★★ - Crude Oil Inventories (Previous: -2.700M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Movado (MOV): [EARNINGS] Reported adjusted quarterly earnings of 36 cents per share, missing the consensus estimate of 50 cents, and revenue also fell below Wall Street forecasts. Movado also cut its full-year outlook, citing category challenges, unfavorable currency trends, the impact of tariffs, and a volatile global environment.
Autodesk (ADSK): [EARNINGS] Reported adjusted quarterly profit of 65 cents per share, 4 cents above estimates, while the maker of computer-aided design software also saw revenue come in above Wall Street forecasts. However, the stock is under pressure after Autodesk lowered its fiscal 2020 earnings forecast and narrowed its sales outlook, pointing to trade and economic uncertainty.
Hewlett Packard Enterprise (HPE): [EARNINGS] Reported adjusted quarterly profit of 45 cents per share, 5 cents above estimates, though the enterprise technology company did see revenue come in slightly below estimates. HPE also said the computer and storage markets are showing signs of softness in the current quarter.
Tiffany (TIF): [EARNINGS] Earned $1.12 per share for its latest quarter, beating estimates by 8 cents. Revenue and comparable stores were below estimates, but the luxury goods retailer reported double-digit growth in mainland China and also maintained its full-year sales and earnings outlook.
Chico’s FAS (CHS): [EARNINGS] Reported a breakeven quarter on an adjusted basis, matching estimates, but revenue and comparable store sales fell below analyst forecasts.
Papa John’s (PZZA): [UPGRADE] Upgraded to “buy” from “hold” at Stifel Nicolaus, which points to the naming of former Arby’s President Rob Lynch as its new Chief Executive Officer. Stifel also raised its price target on the pizza chain’s stock to $60 per share from $42.
JetBlue (JBLU): [REVIEW] In what Deutsche Bank labels a “catalyst call”, it is recommending investors buy shares in the airline, saying a 15% pullback over the past three weeks provides an attractive entry point. It also notes that JetBlue has a good balance sheet and solid market position.
Intel (INTC): [NEWS] The chipmaker and its private equity partners may list cybersecurity company McAfee this fall at a valuation of at least $8 billion, according to a Bloomberg report.
Hershey (HSY): [NEWS] Is buying nutrition bar maker ONE Brands in a deal worth about $325 million, complementing its existing Oatmega nutrition bar business. Hershey expects to complete the deal by the fourth quarter of this year.
Monster Beverage (MNST): [REVIEW] Was named a “Top Pick” at Credit Suisse, which points to upbeat trends for Monster’s Reign performance energy drink.
GAINERS: CAL, PZZA, COST, FOSL, NEM, MDCO
DECLINERS: SJM, PM, GTN, HUM, MCK, PM
WE WILL SHOW YOU THE WAY!