New York is set to wake up to lingering anxiety over a possible economic slowdown, paired with the jitters that surround evolving US-China trade talks – The markets signalling no respite to the rout which has seen more than $3 trillion liquidated from the stock market since late September – US pre-market index futures deep in the red, across the board, heading into the opening bell.

This follows suit to Tuesday’s session where Wall Street tumbled as a confluence of concerns over trade after President Donald Trump threatened “major tariffs” on Chinese imports if his administration failed to reach an effective trade deal with Beijing weighed on investor sentiment.

The selling pressure left the S&P 500 nursing its biggest one-day drop in two months, finishing down -3.24% lower. The benchmark’s heavyweights; the Financial (-4.35%) and Technology (-3.79%) sectors led the market lower, as well as Industrials which emerged as the S&P 500’s second worst-performing sector with a -4.25% drop.

The Dow Jones dropped -3.09%, while the tech-heavy Nasdaq Composite shed -3.84% off its value to end the session.

Investors will now look to anticipate the upcoming Fed meeting, scheduled to take place on December 18, where the central bank is widely expected to raise rates this month, however recent dovish commentary from Chairman Jerome Powell has led to queries around how many times it will hike rates next year.

In today’s slew of economic data; ADP Employment Report is due at 8:15am ET, met with Export/Import, Trade Balance and Productivity and Costs data are due at 8:30am EST, followed by ISM Non-Manufacturing PMI figures at 10:00am EST and Crude Oil Inventories at 11:00am EST.

In today’s corporate earnings front; At Home Group (HOME), G-III Apparel (GIII), H&R Block (HRB) and Kroger (KR) are amongst the companies releasing their financial figures before the bell.

Meanwhile; Lululemon Athletica (LULU), Blue Bird (BLBD), Utla Beauty (UTLA), Broadcom (AVGO), Five Below (FIVE) and Signet Jewellers (SIG) are all expected to post their earnings after the bell.

TODAY’S TOP HEADLINES:

Markets & Europe: European Stocks Hit Two-Year Low on Worst Day Since February. (Bloomberg)
The optimism over the US-China trade talks is gone and all European sectors are in the red as plunging US futures fuel investors’ exodus. The Stoxx Europe 600 Index is having its worst day since February, trading at the lowest level since December 2016.

Energy & Oil: OPEC and Russia poised to impose production cuts despite US pressure. (CNBC)
OPEC and its allies are expected to agree on the terms of price-boosting output cuts, despite pressure from President Donald Trump to reduce the cost of crude.

North America: For George Bush, One Last Funeral, and Then a 70-Mile Train Ride. (The NYT)
The funeral on Thursday morning for former President George Bush will be one of the final events in what has become an extraordinary moment of national mourning. The ceremony in Houston, held the day after Mr. Bush’s state funeral at Washington National Cathedral.

 

ECONOMIC CALENDAR:
Today’s Economical Announcements

08:15AM – ADP Nonfarm Employment (Nov) (Previous: 227K)
08:30AM – Weekly Jobless Claims (12/1) (Previous: 234K)
08:30AM – Exports (Previous: 212.57B)
08:30AM – Imports (Previous: 266.58B)
08:30AM – Nonfarm Productivity (QoQ) (Q3) (Previous: 2.2%)
08:30AM – Trade Balance (Oct) (Previous: -54.0B)
08:30AM – Unit Labor Costs (QoQ) (Q3) (Previous: 1.2%)
09:45AM – Markit Composite PMI (Nov) (Previous: 54.4)
09:45AM – Services PMI (Nov) (Previous: 54.4)
10:00AM – Cap Goods Ship Non Defense (MoM) (Previous: 0.3%)
10:00AM – Factory Orders (MoM) (Oct) (Previous: 0.7%)
10:00AM – ISM Non-Manufacturing Employ. (Nov) (Previous: 59.7)
10:00AM – ISM Non-Manufacturing PMI (Nov) (Previous: 60.3)
11:00AM – Crude Oil Inventories (Previous: 3.577M)
06:45PM – Fed Chair Powell Speaks

STOCKS IN THE SPOTLIGHT:

Pre-Market Movers & News Related Stocks

Thor Industries (THO): [EARNINGS] Reported fiscal first quarter earnings of $1.28 per share, below the consensus estimate of $1.67 per share, Revenue short of forecasts.

Facebook (FB): [DOWNGRADE] Stifel Nicolaus cut its rating on the stock to “hold” from “buy,” saying that Facebook’s management team has created too many adversaries to avoid a long term negative impact on its business.

Alphabet (GOOGL): [RATING] Guggenheim initiated coverage on the company with a “buy” rating. Guggenheim said the rating was a combination of financial health, talented employees, and intellectual property.

Marvell Technology (MRVL): [EARNINGS] Came in one cent ahead of estimates with adjusted quarterly profit of 33 cents per share, with revenue also above estimates. Issued lower than expected current quarter guidance.

Mallinckrodt (MNK): [NEWS] The British drug maker announced plans to spin off its specialty generics business to shareholders as a separate publicly traded company.

Twitter (TWTR): [RATING] Guggenheim initiated coverage on the company with “buy” rating, citing Twitter’s large user base and efforts to improve its platform.

Deere & Co (DE): [DIVIDEND] Raised its quarterly dividend by seven cents to 76 cents per share, an increase of about 10 percent.

Wells Fargo (WFC): [NEWS] The bank is firing about three dozen managers over the sales scandal that came to light two years ago, according to the Wall Street Journal.

Hewlett Packard Enterprise (HPE): [EARNINGS] Reported adjusted quarterly profit of 45 cents per share, two cents above estimates. Revenue beat forecasts.

AIG (AIG): [NEWS] The insurance giant named Mark Lyons as its new chief financial officer, replacing Sid Sankaran, but did not specify why the move was made.

Okta (OKTA): [EARNINGS] Lost four cents per share for its latest quarter, smaller than the 11 cent loss anticipated by Wall Street analysts. Revenue beat forecasts.

Five Below (FIVE): [EARNINGS] Beat estimates by five cents with quarterly profit of 19 cents per share. Revenue beat forecasts. Five Below also raised its revenue and earnings guidance.

Macy’s (M): [DOWNGRADE] Downgraded to “underweight” from “neutral” at Atlantic Equities, which said the Street is too optimistic about Macy’s ability to deliver earnings and sales outperformance.

Blackstone (BX): [NEWS] The private equity firm is planning an initial public offering of benefits manager Alight Solutions, according to Reuters.

CVS Health (CVS): [NEWS] The company said its Caremark pharmacy benefits unit will offer a new “guaranteed net cost” option in 2019, assuring that clients receive all rebates, discounts, and fees paid by drug makers.

Mastercard (MA): [DIVIDEND] Increased its quarterly dividend to 33 cents per share from 25 cents, an increase of 32 percent. Mastercard also announced a $6.5 billion share repurchase program.

Signet Jewelers (SIG): [EARNINGS] Lost $1.06 per share for its latest quarter, smaller than the loss of $1.10 per share that analysts were anticipating. Revenue beat forecasts.

Brown-Forman (BF.B): [EARNINGS] Matched forecasts with quarterly earnings of 52 cents per share. Revenue fell short of estimates.

Northrop Grumman (NOC): [BUY-BACK] Announced a new $3 billion share repurchase authorization, increasing the defense contractor’s total buyback authorization to $4.1 billion.

Yum Brands (YUM): [NEWS] Said it expected same-restaurant sales growth of 2-3 percent in 2019, largely above the 2.25 percent consensus estimate of analysts polled by Refinitiv.

 

MOMENTUM STOCKS:

GAINERS: –
LOSERS: BLDR, SQ, URI, OZK, KNX

TODAY’S IPOs:

MOGU (MOGU) (Price: 14) (Shares: 4.8M)