New York paints a mixed picture heading into the final trading day of November; futures slipped, positioned lower into the opening bell as investors turn their focus to the upcoming G-20 summit where America and China look to decide the course of the trade war.
Thursday’s session saw major US indices pullback, cutting-loose a three-day positive streak, where the S&P, Nasdaq and Dow Jones all staged their biggest one-day move since March, each advancing over +2% on Wednesday.
Stocks were in pullback-mode as early as Thursday’s open and were later weighed back into negative territory following the minutes release of Federal Reserve’s most recent meeting where policymakers suggested they would continue gradual increases in interest rates if the US economy remains on track; The bank is now expected to pull the trigger in December on its fourth and final interest rate rise for the year.
The closing bell reported a -0.22% loss for the S&P 500, the benchmark pulled lower by the Telecommunications (-0.68%), Financials (-0.85) and the Technology (-0.97%) sector.
The tech-heavy Nasdaq Composite fell -0.33%, while the Dow Jones shed -0.1% off its value to end the day.
No major corporate earnings are expected to be released on Friday. In economic data; Chicago PMI figures are due to be released at 9:45am ET.
Meanwhile, New York Fed President, John Williams, is set to speak at a panel on the future of the global economy at around 9:00am ET.
TODAY’S TOP HEADLINES:
Cannda, Mexico & Trade: US, Canada and Mexico to sign new trade deal at G20 summit. (USA Today)
President Donald Trump and the leaders of Mexico and Canada are expected to sign a revised trade pact Friday that changes many of the rules governing the free flow of commercial goods across North America. The ceremony, to be held at 7am at the opening of the G-20 summit in Buenos Aires, Argentina, will bring the three countries a step closer to their goal of improving continental commerce and making it easier for companies to move goods and supplies across their borders.
China & Trade: US and China Explore Deal as Leaders Meet at G-20 Summit. (The WSJ)
The US and China, looking to defuse tensions and boost markets, are exploring a trade deal in which Washington would hold off on further tariffs through the spring in exchange for new talks looking at big changes in Chinese economic policy, said officials on both sides of the Pacific.
Today’s Economical Announcements
09:00AM – FOMC Member Williams Speaks
09:45AM – Chicago PMI (Nov) (Previous: 58.4)
01:00PM – US Baker Hughes Oil Rig Count (Previous: 885)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks.
GameStop (GME): [EARNINGS] Reported adjusted quarterly profit of 67 cents per share, topping consensus forecasts by 10 cents a share. Revenue very slightly above estimates.
Ambarella (AMBA): [EARNINGS] Reported adjusted quarterly profit of 21 cents per share, beating the consensus estimate of nine cents. Revenue and current quarter guidance also beat forecasts.
Workday (WDAY): [EARNINGS] Came in 17 cents a share above estimates with adjusted quarterly profit of 31 cents per share. Revenue exceeded forecasts.
VMWare (VMW): [EARNINGS] Earned an adjusted $1.56 per share for its latest quarter, 6 cents a share above estimates. Revenue in line with expectations.
Marriott (MAR): [NEWS] The hotel chain revealed that hackers had access to the Starwood brand guest reservation database since 2014, and could access a variety of personal data that in some cases included payment information.
Goldman Sachs (GS): [DOWNGRADE] Downgraded to “neutral” from “buy” at Bank of America. Bank of America said although the current valuation discounts most potential negatives related to the 1MDB investigation, uncertainty may linger for a while.
HP Inc. (HPQ): [EARNINGS] Reported adjusted quarterly profit of 54 cents per share, matching Street forecasts. Revenue beat estimates.
PVH (PVH): [EARNINGS] Beat estimates by 7 cents a share, with adjusted quarterly profit of $3.21 per share. Revenue missed estimates.
Nio (NIO): [NEWS] The CEO of the China electric car maker’s U.S. unit, Padmasree Warrior, is resigning.
General Electric (GE): [DOWNGRADE] Deutsche Bank lowered its price target on GE stock to $7 per share from $11, based on what it sees as the most likely macroeconomic scenario.
Under Armour (UAA): [UPGRADE] Upgraded to “market perform” from “underperform” at Wells Fargo, ahead of the company’s December 12 meeting with analysts.
AT&T (T): [NEWS] AT&T told investors it is committed to cutting up to $20 billion in debt next year.
CVS Health (CVS): [NEWS] Closed its deal to buy insurer Aetna earlier this week, but a judge is now raising the prospect of not approving the deal.
Fair Isaac (FICO): [UPGRADE] Upgraded to “overweight” from “equal weight” at Barclays, which cited several factors including valuation.
Palo Alto Networks (PANW): [EARNINGS] Earned an adjusted $1.17 per share for its fiscal first quarter, 12 cents above estimates. Revenue exceeded forecasts.
Deutsche Bank (DB): [NEWS] The bank’s headquarters were raided by police in Frankfurt for a second day, amid money laundering allegations linked to the so-called “Panama Papers.”
GAINERS: DLTR, TEAM
LOSERS: DGX, TIF