New York looks to awake under pressure of resurfaced US-China trade concerns, the market seemingly digesting recent comments made by President Donald Trump, stating; it is “highly unlikely” that the US would delay the 25% tariff increase on Chinese goods, going on to suggest that a 10% tariff on laptops and iPhones imported from China could be imposed.
This follows suit to Cyber Monday’s trading session which saw Wall Street bargain hunters bounce into force, driving up shares of Retail (+1.96%), Technology (+2.26%) and Financial (+2%) stocks higher.
The S&P 500 chalked up in its best day in just over two weeks, positive +1.61%, dragging the benchmark out of correction territory, now resting flat for 2018.
The Dow Jones Industrial Average rose +1.4%, while the Nasdaq ended the session up +1.3%.
Shares of Amazon (AMZN: +5.8%), the S&P’s 10th-best daily performer yesterday, along with other retail stocks shot up higher on hopes that retailers will benefit from a record Cyber Monday.
Traders of mega-cap equities are likely to keep an eye on Microsoft (MSFT: +3.3%) today, which is looking to dethrone Apple (AAPL: +1%) as the largest company in the world by market capitalization.
Meanwhile, in economic data; the latest Home Price Index figures are set for release at 9am ET, followed by Consumer Confidence figures at 10am ET.
On the corporate earnings front, Cracker Barrel (CBRL) and Salesforce (CRM) are amongst a few other companies scheduled to publish earnings today.
TODAY’S TOP HEADLINES:
Trade, US & China: Trump Signals US Likely to Go Ahead With China Tariff Increase. (Bloomberg)
President Donald Trump said he’ll likely push forward with plans to increase tariffs on $200 billion of Chinese goods, indicating he would also slap duties on all remaining imports from the Asian nation if negotiations with China’s leader Xi Jinping fail to produce a trade deal.
Politics, UK & US: Trump warns Brexit agreement could threaten future US-UK trade deal. (CNBC)
When asked about the agreement between Westminster and the EU’s other 27 heads of state on Monday, Trump replied: “Sounds like a great deal for the EU.” Sterling fell more than 0.5% against the US dollar and around 0.3% against the euro on the news.
Today’s Economical Announcements
08:30AM – FOMC Member Clarida Speaks
09:00AM – House Price Index (YoY) (Sep) (Previous: 6.1%)
09:00AM – House Price Index (MoM) (Sep) (Previous: 0.3%)
10:00AM – CB Consumer Confidence (Nov) (Previous: 137.9)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks.
Bristol-Myers Squibb (BMY): [NEWS] The drug maker said a combination of two cancer drugs did not extend the lives of lung cancer patients in a late stage trial.
Hibbett Sports (HIBB): [EARNINGS] Fell two cents short of expectations with adjusted quarterly profit of 14 cents per share. Revenue missed estimates.
Buckle (BKE): [EARNINGS] Reported quarterly earnings of 42 cents per share, four cents shy of analyst forecasts. Revenue missed estimates.
Spirit Airlines (SAVE): [EARNINGS] Gave upbeat guidance for the current quarter, including lower costs and higher revenue.
Apple (AAPL): [NEWS] Apple is under pressure, after President Trump told the Wall Street Journal he would put tariffs on Chinese imports currently not subject to tariffs if negotiations are not successful.
Amarin (AMRN): [NEWS] Will collect about $200 million in gross proceeds from a newly priced offering of its American depositary shares.
Tesla (TSLA): [NEWS] Tesla sales in China dropped 70 percent in October compared to a year ago, according to a Reuters report quoting information from the China Passenger Car Association. The group said Tesla sold only 211 cars in China last month.
Novartis (NVS): [NEWS] Novartis eye care division Alcon said it expected to pay a dividend to shareholders starting in 2020.
Amazon.com (AMZN): [NEWS] Amazon announced that Cyber Monday saw the single biggest shopping day in the online retailer’s history.
United Technologies (UTX): [NEWS] Said it would separate into three independent companies, with plans to spin off its Otis and Carrier divisions to shareholders. The split, which would leave aerospace operations under the United Technologies banner, is expected to be completed in 2020.
CVS Health (CVS): [RATING] Rated “outperform” in new coverage at Cantor Fitzgerald, noting the company’s strength as an integrated health care company with the capability of innovating across the entire industry landscape.