US stock futures turned lower on Friday as the street weighed the reopening of the global economy against signs of strained relations between America and China, ahead of more economic data.
Worries over US-China tensions were renewed this morning after the Trump administration moved to block shipments of semiconductors to Chinese telecom giant, Huawei Technologies.
This followed comments on Thursday, where President Donald Trump said he didn't want to talk to his Chinese counterpart, Xi Jinping, "right now". Trump has sought to blame China for the coronavirus pandemic.
Separately, Texas experienced its deadliest day from the coronavirus on Thursday, two weeks after the state's reopening. The state plans to announce more business reopenings on Monday.
Ahead, in today’s economic calendar, Friday includes; Retail Sales for April at 8:30am EST, Industrial and Manufacturing Production for April at 9:15am EST, followed by JOLTs Job Openings for March as well as Consumer Expectations and Sentiment data for May at 10am EST.
Earnings reports are expected today from; VF Corp (VFC), DraftKings (DKNG) and JD.com (JD).
TODAY'S TOP HEADLINES
China & Economy: Chinese Economy’s Recovery From Coronavirus Starts Off Slowly. (The WSJ)
China’s economic activity showed some signs of improvement in April as the first country hit by the coronavirus began returning to work, though rising joblessness continued to weigh on consumer spending.
Today's Economical Announcements.
08:30AM - ★★★ - C. Retail Sales (Apr) (Previous: -4.2%)
08:30AM - ★★★ - Retail Sales (Apr) (Previous: -8.4%)
09:15AM - ★★☆ - Industrial Production (Apr) (Previous: -5.4%)
09:15AM - ★☆☆ - Manufacturing Production (Apr) (Previous: -6.3%)
10:00AM - ★★☆ - Michigan Consumer Expect. (May) (Previous: 70.1)
10:00AM - ★★☆ - Michigan Consumer Senti. (May) (Previous: 71.8)
10:00AM - ★★★ - JOLTs Job Openings (Mar) (Previous: 6.882M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Qualcomm (QCOM), Cisco (CSCO), Apple (AAPL), Boeing (BA): [NEWS] Reports out of China suggest that retaliation against these and other US companies could come if the US goes ahead with plans announced this morning to block chip shipments to China’s Huawei.
Aurora Cannabis (ACB): [EARNINGS] Posted a smaller loss for its latest quarter, with sales of cannabis jumping 39% from a year ago as customers in the U.S. and Canada stockpiled products ahead of virus-related lockdowns.
JD.com (JD): [EARNINGS] Beat estimates by a wide margin on both the top and bottom lines for its latest quarter, with annual active customer accounts up 24.8% from a year ago and mobile active daily users up 46%.
Applied Materials (AMAT): [EARNINGS] Fell 5 cents a share shy of estimates, with quarterly earnings of 89 cents per share. The maker of semiconductor manufacturing equipment’s revenue also came in short of forecasts. The company said it expected to recoup any pandemic-related lost sales during the second half of the year.
Dillard’s (DDS): [EARNINGS] Reported a smaller-than-expected loss for its latest quarter, and the retailer announced plans to reopen 116 stores and five clearance centers next week.
Denny’s (DENN): [EARNINGS] Reported better-than-expected quarterly earnings, even as the restaurant chain’s revenue tumbled 36% from a year earlier. Denny’s streamlined its menu as the pandemic spread, and emphasized curbside delivery and shareable family meal packs.
Norton LifeLock (NLOK): [EARNINGS] Came in 7 cents a share ahead of estimates, with quarterly profit of 26 cents per share. The cybersecurity company’s revenue also beat Street forecasts, however it gave weaker-than-expected current-quarter revenue guidance.
DraftKings (DKNG): [EARNINGS] Posted a larger-than-expected quarterly loss, although revenue grew 30% from a year ago despite the Covid-19 pandemic shutting down sports events. The company does not expect a virus-related impact on its longer-term projections.
Abbott Laboratories (ABT): [NEWS] The Food and Drug Administration will review Abbott’s fast coronavirus test amid concerns about its accuracy, particularly about failing to detect patients who have Covid-19. Abbott will conduct multiple new studies of the test in various health-care settings.
Walt Disney (DIS): [NEWS] Reached a deal with union workers at Walt Disney World on employee safeguards. The deal removes a significant obstacle to Disney’s reopening plans for its theme parks.
Office Depot (ODP): [NEWS] Plans to cut more than 13,000 jobs and close an undetermined number of stores by the end of 2023. The office supplies retailer said the restructuring could save it as much as $860 million.
Nike (NKE): [NEWS] Warned that pandemic-related store closures during the current quarter will hurt its retail and wholesale results. The athletic footwear and apparel maker did say that 100% of its Greater China stores have reopened and that online sales are helping offset lost sales from store closures.
VF Corp. (VF): [EARNINGS] Earned an adjusted 10 cents per share for its latest quarter, 4 cents a share below estimates. Revenue also missed analysts’ forecasts and VF said it sees current-quarter revenue falling a little more than 50% this quarter, but it does intend to continue paying its dividend.
GAINERS: ALLO, ACMR
DECLINERS: EXEL, EGHT
ADC Therapeutics (ADCT) (Low: 16, High: 18) (Est. Vol: $175.0M)
Novus Capital (NOVSU) (Price: 10) (Est. Vol: $100.0M)
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