US Pre-Market Quotes.
US equity index futures indicate a negative open for Wall Street, Friday; investors looking ahead to fresh economic data and overseas political developments in regards to Brexit.
Thursday’s session saw the stock market erase earlier weekly losses, amid optimism on trade as the US and China intensified efforts to strike a truce at the G20 that would curb their trade war.
The S&P 500 closed the session positive +1%, halting a five-day losing streak; the index led higher by the Technology sector, best performing the market, rising +2.5%, paired with the Energy sector (+1.5%) which also rallied on higher oil prices and Financials (+1.5%) as JPMorgan Chase (JPM: +2.55%) and Bank of America (BAC: +2.54%) both accelerated higher.
Utilities (-0.8%) continued to suffer under the weight of Pacific Gas & Electric (PCG) shares, which plunged a further -31% on concerns that the company’s equipment may have caused the deadly California wildfires. Homebuilders and Home Improvement retailers also declined, pressured by weak revenue from KB Home (KBH: -15.34%).
Major market indices across the board recorded gains, yesterday; the tech-heavy Nasdaq Composite advanced +1.75%, while the Dow Jones closed the session positive +0.9%, fueled by large-cap Caterpillar (CAT: +3.45%), a stock sensitive to trade developments.
Investors will continue to monitor developments in US-China trade talks along with the number of economic announcement expected to be released today; Industrial Production and Manufacturing Production numbers are expected to be released at 9:15am ET, followed by the Kansas City Fed Manufacturing Index at 11am ET; later into the session, the Baker-Hughes Rig Count is set for release at 1:00pm ET.
Friday marks a thin day for earnings with Viacom (VIAB) expected to post corporate results before the bell.
TODAY’S TOP HEADLINES
United Kingdom: Theresa May appeals for EU deal support as Brexit battle rages. (FT)
Theresa May took to the airwaves on Friday to appeal directly to the British public to support the draft Brexit deal after a series of cabinet resignations and the threat of a Eurosceptic coup left the Conservative party on the brink of civil war. However, the prime minister received a boost after environment secretary Michael Gove decided not to resign as more backbench Tories said they had submitted letters of no confidence in her.
Natural Disasters: Fire Death Toll Hits 63; Sheriff Says Hundreds Still Missing. (Bloomberg)
At least 63 people are now dead from a Northern California wildfire, and officials say they have a missing persons list with 631 names on it in an ever-evolving accounting of the victims of the nation’s deadliest wildfire in a century. The high number of missing people probably includes some who fled the blaze and don’t realize they’ve been reported missing, Butte County Sheriff Kory Honea said. He said he’s making the list public so people can see if they are on it and let authorities know they survived.
Energy & Oil: Oil Bounce Steadies Global Stocks. (The WSJ)
A rally in oil prices helped steady markets in Europe and Asia on Friday, even as Brexit loomed in the background. Brent crude oil prices were up over 2% at $68.05 a barrel on Friday. That put the global benchmark on track for its third straight day of gains after steep falls earlier in the week sent it into bear market territory, commonly defined as a 20% fall from a recent peak.
Today’s Economical Announcements
09:15AM – Capacity Utilization Rate (Oct) (Previous: 78.1%)
09:15AM – Industrial Production (YoY) (Previous: 5.1%)
09:15AM – Industrial Production (MoM) (Oct) (Previous: 0.3%)
09:15AM – Manufacturing Production (MoM) (Oct) (Previous: 0.2%)
11:00AM – KC Fed Manufacturing Index (Nov) (Previous: 5)
11:30AM – Chicago Fed President Evans Speaks
01:00PM – US Baker Hughes Oil Rig Count (Previous: 886)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks.
Nvidia (NVDA): [EARNINGS] Reported $3.18 billion in revenue versus $3.24 billion as expected by analysts in the third quarter. Nvidia’s fourth-quarter revenue guidance also fell short of expectations, at $2.70 billion. Nvidia reported earnings of $1.84 per share, excluding certain items.
PG&E (PCG): [NEWS] State regulators are investigating whether the utility company’s equipment was responsible for starting the California wildfires.
Sonos (SONO): [EARNINGS] Reported $272.9 million in revenue, beating analysts’ expected $248.6 million. The company also reported strong revenue guidance.
Nordstrom (JWN): [EARNINGS] Reported quarterly earnings of 39 cents a share, missing analysts’ expectations of 66 cents a share. However, the company beat expectations on revenue, reporting $3.75 billion versus an estimate of $3.69 billion. Nordstrom also said it took a one-time, $72 million charge to refund customers who were mistakenly charged higher interest rates on store credit cards.
Applied Materials (AMAT): [EARNINGS] Met analysts’ expectations of 97 cents per share and narrowly beat revenue expectations, reporting $4.01 billion. Analysts had expected $4.00 billion. However, the company reported very weak revenue and earnings per share guidance.
Williams-Sonoma (WSM): [EARNINGS] Missed on revenue, reporting $1.36 billion. Analysts had expected $1.37 billion. The kitchenware retailer narrowly beat on earnings per share, reporting 95 cents per share versus an estimate of 94 cents.
Viacom (VIAB): [EARNINGS] Reported better than expected fiscal fourth-quarter earnings and revenue. The media giant has been under constant speculation about whether it would be combined with CBS (CBS) by their mutual controlling shareholder, the Redstone family.
BlackBerry (BB): [NEWS] Has agreed to acquire Cylance, an artificial intelligence and cybersecurity company, for $1.4 billion in cash to help expand its QNX unit which makes software for next-generation autonomous cars.
Tesla (TSLA): [NEWS] Said it’s reduced prices on its solar power systems as it looks to make sustainable energy use more affordable. The average customer can expect savings of about $3,000 or 10 percent for a residential installation.
LOSERS: PCG, KBH, EIX, NTAP, TOL
AMCI Acquisition (AMCIU) (Price: 10) (Shares: 20M)
Boxwood Merger (BWMCU) (Price: 10) (Shares: 20M)
Fintech Acquisition (FTACU) (Price: 10) (Shares: 30M)
Taiwan Liposome (TLC) (Low: 10, High: 12) (Shares: 5M)