OPENING BELL

New York looks prepared for some respite into today’s opening bell – US pre-market futures higher this morning following the latest wave of global equity selling pressure.

Tuesday’s session saw US equities close sharply lower, extending a pre-Thanksgiving rout, fueled mostly by a selling in the Energy (-3.2%), Technology (-2%) and Telecommunications (-2.5%) sectors – now spread to ensnare the broader market.

Note: The US financial markets will be closed, Thursday; in celebration of Thanksgiving and see an early 1:00pm EST close on Friday.

The bruising session saw the S&P 500 enter into correction territory, now down -1% for the year 2018; ending the session -1.8% lower with all S&P sectors closing in the red – Energy (-3.2%) being the worst of the lot – Utilities, being the best performer, down -0.5%.

The Nasdaq Composite shed -1.7% off its value, while the Dow Jones Industrial Average dropped -2.2% with all 30 of its members closing lower.

Investors are likely to closely monitor; Durable Goods figures for October at 8:30am ET, as well as Existing Home Sales data for October, scheduled to be released at 10:00am EST.

In today’s corporate earnings front; Deere (DE), Cheetah Mobile (CMCM) and Qudian (QD) are all expected to publish their latest quarterly earnings results before the opening bell.

TODAY’S TOP HEADLINES

Italy & EU: EU Takes First Step Toward Fining Italy on Budget. (Bloomberg)
The European Union took a first step toward imposing fines on Italy after decreeing that the populist government’s spending drive violates the bloc’s fiscal rules. In the meantime, Deputy Prime Minister Matteo Salvini told reporters he was open to small tweaks in the budget while reassuring voters that he wouldn’t compromise on the main principles.

Politics & Energy: Trump Stands With Saudi Arabia, Plays Down Crown Prince’s Alleged Role in Journalist’s Killing. (The WSJ)
President Trump on Tuesday sought to extinguish questions about the future of U.S. relations with Saudi Arabia, pledging to remain a “steadfast partner” of the kingdom and dismissing U.S. intelligence conclusions that the Saudi crown prince had ordered the killing of a dissident journalist last month.

United Kingdom: Theresa May seeks to resolve last blocks on Brexit deal. (FT)
Theresa May will try to finalise Britain’s EU exit package in Brussels on Wednesday as the prime minister seeks to overcome significant differences over Gibraltar, goods trade and fishing rights in future trade relations.

 

ECONOMIC CALENDAR
Today’s Economical Announcements

08:30AM – Weekly Jobless Claims (11/17) (Previous: 216,000)
08:30AM – Cap Goods Ship Non Defense Ex Air (MoM) (Previous: -0.1%)
08:30AM – Core Durable Goods Orders (MoM) (Oct) (Previous: 0.1%)
08:30AM – Durable Goods Orders (MoM) (Oct) (Previous: 0.7%)
10:00AM – Existing Home Sales (Oct) (Previous: 5.15M)
10:00AM – Existing Home Sales (MoM) (Oct) (Previous: -3,4%)
10:00AM – Michigan Consumer Expectations (Nov) (Previous: 88.7)
10:00AM – Michigan Consumer Sentiment (Nov) (Previous: 98.3)
10:30AM – Crude Oil Inventories (Previous: 10.270M)

STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.

Foot Locker (FL): [EARNINGS] Came in 3 cents a share ahead of estimates, with adjusted quarterly profit of 95 cents per share. Revenue beat expectations.

Autodesk (ADSK): [EARNINGS] Reported quarterly profit of 29 cents per share, 2 cents a share above estimates. Revenue came in above forecasts.

BJ’s Wholesale Club (BJ):  [EARNINGS] Beat estimates by 5 cents a share, with quarterly profit of 39 cents per share. Revenue came in above forecasts.

Barnes & Noble (BKS): [EARNINGS] Lost 38 cents per share for its second quarter, 3 cents a share smaller than analysts had anticipated. Revenue slightly below estimates.

Apple (AAPL): [NEWS] Apple is in talks with the Department of Veterans Affairs to provide portable electronic health records to military veterans, according to The Wall Street Journal.

Walgreens (WBA), Humana (HUM): [NEWS] Walgreens and Humana are in preliminary talks to take stakes in each other, according to The Wall Street Journal.

Mylan (MYL): [NEWS] Mylan received a Food and Drug Administration warning letter earlier this month detailing concerns over conditions at its manufacturing facility in West Virginia.

Facebook (FB): [NEWS] CEO Mark Zuckerberg told CNN that he had no plans to step down from the chairman’s role despite calls to do so, and that he hopes to work with Chief Operating Officer Sheryl Sandberg “for decades to come.”

Deere (DE): [EARNINGS] Earned an adjusted $2.30 per share for its fiscal fourth quarter, 15 cents a share shy of estimates. Revenue came in short of forecasts.

Amazon.com (AMZN): [NEWS] The online retail giant is seeking to persuade brick-and-mortar retailers to accept its Amazon Pay service, according to The Wall Street Journal.

Goldman Sachs (GS): [DOWNGRADE] Downgraded to “equal-weight” from “overweight” at Morgan Stanley.

Gap (GPS): [EARNINGS] Reported quarterly earnings of 69 cents per share, beating consensus by a penny a share. Revenue slightly above estimates.

Lowe’s (LOW): [DOWNGRADE] Downgraded to “hold” from “buy” at Stifel Nicolaus.

MOMENTUM STOCKS

GAINERS: OHI
LOSERS: LB, JEC, NAVI, ROST

TODAY’S IPOs

None.