US stock futures prices advanced on Tuesday, as governments across the globe contemplated reopening their economies, while an extended selloff in oil prices served as a reminder of just how much selling had compounded within the energy sector amid the coronavirus pandemic.
Prolonged dysfunction in the oil market intensified today, sending some popular oil benchmarks to their lowest levels since at least 1986.
These developments come after Monday's session, where the S&P 500 (+1.44%) finished higher, following initial reports of global economies wanting to tentatively reopen for business.
Ahead, the stock market will also have to contend with a number of potentially market-moving events today; such as earnings from Google parent Alphabet (GOOGL) and the start of a two-day Fed meeting.
Today's economic calendar includes; International Trade in Goods for March at 8:30am EST and Consumer Confidence for April at 10am EST.
Earnings reports are also expected today from; PepsiCo (PEP), 3M (MMM), Caterpillar (CAT), Advanced Micro Devices (AMD), Ford (F), Southwest Airlines (LUV), Merk (MRK), Starbucks (SBUX), FireEye (FEYE), iRobot (IRBT), Mondelez (MDLZ) and Harley-Davidson (HOG).
TODAY'S TOP HEADLINES
Energy & Oil: Oil Plunges After Sudden Index Shift Prompts Fire Sale. (Bloomberg)
Crude whipsawed near $11 a barrel after a major index tracked by billions of dollars in funds bailed out of near-term contracts for fear prices may turn negative again.
Coronavirus: As Coronavirus Lockdowns Ease, WHO Urges Caution. (The WSJ)
More US states and countries around the world began exiting coronavirus-related lockdowns, while the World Health Organization warned that infections could be undercounted in some regions.
Today's Economical Announcements.
08:30AM - ★★☆ - Goods Trade Balance (Mar) (Previous: -59.89B)
10:00AM - ★★★ - CB Consumer Confi. (Apr) (Previous: 120.0)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Harley-Davidson (HOG): [EARNINGS] Earned 45 cents per share for its latest quarter, 4 cents a share above estimates. Revenue was slightly above forecasts. However, profit was down 45% from a year ago as global lockdowns hit sales. Harley also suspended share repurchases, and cut its quarterly dividend to 2 cents a share from 38 cents a share.
DR Horton (DHI): [EARNINGS] Beat consensus forecasts by 18 cents a share, with quarterly profit of $1.30 per share. Revenue was also above estimates. The company said sales and profits are slowing, however, and cancellations are increasing due to the coronavirus pandemic.
Keurig Dr Pepper (KDP): [EARNINGS] Reported quarterly earnings of 29 cents per share, 2 cents a share above estimates. The beverage maker’s revenue also beat forecasts and the company reaffirmed a full-year forecast that is above current consensus, with stay-at-home consumers stocking up on the company’s offerings like Dr Pepper and 7UP.
3M (MMM): [EARNINGS] Reported quarterly earnings of $2.16 per share, beating the consensus estimate of $2.03 a share. The health-care and safety products maker’s revenue also beat forecasts, but the company withdrew its full-year outlook due to virus-related uncertainties.
Boeing (BA): [NEWS] Will resume production of its 787 Dreamliner aircraft at its South Carolina factory on May 4. It had suspended production on April 8 because of the Covid-19 pandemic, and plans to institute a series of safeguards at the factory before workers return.
UBS (UBS): [EARNINGS] Saw profits rise by 40% for its latest quarter, as the world’s largest wealth manager saw increased portfolio activity by its high-end clients.
JetBlue (JBLU): [NEWS] Became the first U.S. airline to mandate face coverings for passengers, with the rule taking effect May 4. Airlines have already asked flight attendants to wear masks, and worker unions have been pushing for a similar rule for passengers.
F5 Networks (FFIV): [EARNINGS] Earned $2.23 per share for its fiscal second quarter, compared to a consensus estimate of $1.95 a share. The computer networking company’s revenue also beat forecasts, as it benefits from an increasing number of companies asking employees to work from home. F5 also gave an above-consensus current-quarter forecast for earnings and sales.
Tesla (TSLA): [NEWS] Canceled plans to bring employees back to work at its Fremont, California plant, following a weekend request to some furloughed workers to return.
Merck (MRK): [EARNINGS] Came in 16 cents a share ahead of estimates, with quarterly profit of $1.50 per share. The drugmaker’s revenue also topped Wall Street forecasts. Merck’s results were helped by strong sales of its Keytruda cancer drug, but it cut its 2020 forecast due to coronavirus-related uncertainties.
Pfizer (PFE): [EARNINGS] Earned 80 cents per share for the first quarter, 7 cents a share better than consensus. Revenue also beat forecasts and Pfizer reaffirmed its full-year financial outlook. A drop in sales of off-patent pain drug Lyrica contributed to a more than 12% drop in profit compared to a year ago.
Caterpillar (CAT): [EARNINGS] Missed forecasts by 9 cents a share, with quarterly earnings of $1.60 per share. Revenue fell short of estimates as well amid a slowdown in demand. As many other companies have done, Caterpillar is not providing any full-year 2020 guidance due to uncertainties surrounding the pandemic.
PepsiCo (PEP): [EARNINGS] Came in 4 cents a share ahead of estimates, with quarterly earnings of $1.07 per share. Revenue came in above estimates as well. PepsiCo is joining those withdrawing its outlook due to pandemic-related uncertainties. The company said it still expects to buy back $2 billion in shares this year and pay $5.5 billion in dividends.
Novartis (NVS): [EARNINGS] Reported first-quarter profits and sales that came in above analysts’ estimates, with the drugmaker benefiting from customers stocking up on their prescriptions as the coronavirus outbreak took hold.
Verizon (VZ), AT&T (T), Comcast (CMCSA), T-Mobile (TMUS): [NEWS] Wireless service providers have agreed to extend customer concessions through June 30, and will not cancel service or charge late fees to customers impacted by the pandemic.
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