US equity futures pointed to a mostly flat open on Monday, at the start of a busy week ahead, with banks scheduled to unofficially kick off second-quarter earnings season, alongside upcoming Federal Reserve speeches and economic data releases.
With the stock market now resting at record highs and the Federal Reserve guiding markets to further monetary support in the coming months, focus will now turn to both the strength and outlook of US corporate earnings in the weeks ahead.
Citigroup (C) will best first to test the waters, ahead of today’s open, with banking rivals JPMorgan (JPM), Goldman Sachs (GS), Wells Fargo (WFC), Morgan Stanley (MS) and Bank of America (BAC) all expected to follow over the next two days.
These upcoming developments follow come after Friday’s session, where US stocks capped a record-breaking week with a new record-high, as investors remained upbeat over the prospect of fresh economic stimulus from the Federal Reserve.
The S&P 500 finished near session highs on Friday, the benchmark’s fourth consecutive gain, rising +0.45%. Meanwhile, the Dow Jones Industrial Average and Nasdaq Composite both also secured record highs, up +0.91% +0.58%, respectively.
Ahead, in today’s economic calendar; Empire State Manufacturing Survey data for July in scheduled for release at 8.30am EST.
TODAY'S TOP HEADLINES
China & Trade: China Growth at Its Slowest Since 1992 as Beijing Struggles to Juice Economy. (The WSJ)
China’s economic growth decelerated to its slowest pace in decades, weakened by trade tensions with the US. The economy grew by 6.2% in the second quarter, down from 6.4% in the period before, official statistics showed Monday.
Today's Economical Announcements.
08:30AM - ★★☆ - NY Empire State Manuf. (Jul) (Previous: -8.60)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Carrizo Oil & Gas (CRZO): [BUYOUT] Will be acquired by Callon Petroleum (CPE) in an all-stock transaction valued at $3.2 billion, or $13.12 per Carrizo share.
Crocs (CROX): [UPGRADE] Upgraded to “overweight” from “neutral” at Piper Jaffray, based on the belief that the shoe maker has been seeing solid traffic.
Tiffany (TIF): [DOWNGRADE] Downgraded to “neutral” from “buy” at Citi, based on concerns about near-term dynamics despite what Citi sees as good long-term moves by management at the luxury goods retailer.
Slack Technologies (WORK): [RATING] Rated “overweight” in new coverage at Barclays on revenue growth prospects, despite what it calls a “demanding” valuation for the enterprising message system provider.
Boeing (BA): [NEWS] Boeing’s 737 Max jet could remain grounded into 2020, according to government and industry officials who spoke to The Wall Street Journal.
Facebook (FB): [NEWS] Reportedly close to settling with the Federal Trade Commission by paying a $5 billion fine. The Federal Trade Commission has been conducting a probe of Facebook’s privacy practices.
Amazon.com (AMZN): [NEWS] Kicked off its fifth annual “Prime Day,” which this year is extending to 48 hours.
Gilead Sciences (GILD): [NEWS] Is investing $5.1 billion to increase its stake in Belgian-Dutch biotech firm Galapagos. Gilead will also expand its partnership with Galapagos, agreeing to develop and commercialize its drugs over a 10-year period.
General Electric (GE): [DOWNGRADED] Downgraded to “neutral” from “buy” at UBS, which cites valuation, a decline in interest rates, and ongoing power market weakness.
Molson Coors (TAP): [DOWNGRADE] Bank of America downgraded the company to “underperform” from “buy” and cut its price target for the stock to $50 per share from $70.
International Speedway (ISCA): [DOWNGRADE] Downgraded to “underperform” from “market perform” at Wells Fargo, which points to a lack of upside potential given takeover offers in play for both race car track operators.
Speedway Motorsports (TRK): [DOWNGRADE] Downgraded to “underperform” from “market perform” at Wells Fargo, which points to a lack of upside potential given takeover offers in play for both race car track operators.
Sealed Air (SEE): [DOWNGRADE] Downgraded to “underweight” from “sector weight” at KeyBanc, which points to wake volume trends for the industrial gas maker as well as the degree of balance sheet leverage.
GAINERS: BKE, CARA, OLLI, WW, ESTC, ANTM, UNH
DECLINERS: ILMN, JNJ, TERP, MRK
WE WILL SHOW YOU THE WAY!