Stocks coasted downhill in Europe, while US equity futures were positioned to trade lower ahead of the New York open, as market participants worldwide measured the implications of the White House’s stand-off with China’s leading technology company, Huawei.
Technology stocks led overnight declines in Europe following weekend reports that American tech-titans; Alphabet (GOOGL), Qualcomm (QCOM) and Broadcom (AVGO) had all suspended either licensing or shipping of components to Huawei in the wake of last week’s executive order. The move rippled through much of the technology industry, threatening both global supply chains and some of the world’s largest component-makers.
Today’s pre-market declines look to extend upon Friday’s session, where US stocks snapped their three-day winning streak as investors remained unnerved by disputes between Washington and Beijing.
The S&P 500 (-0.65%) had lost its footing during afternoon trading, as Wall Street reacted to a report from CNBC which had stated that scheduling for a new round of US-China trade talks was “in flux”.
The Dow Jones Industrial Average had shared a similar fate, ending down -0.66%, while the tech-heavy Nasdaq Composite lost -1.02% of its value, pressured by falling shares of Tesla (TSLA: -7.58%), after the car manufacturer’s fatal autopilot software crash in Florida.
In a weekly perspective, the S&P 500 closed out Friday with a -0.78% weekly decline, the Dow slid for the fourth straight week, down -0.95% and the Nasdaq ended the week down -1.06%.
Moving forward, today’s absence of major economic data releases looks to shift Wall Street’s attention towards today’s Federal Reserve speeches, with; Patrick Harker, Richard Clarida, John Williams all scheduled to speak at separate events on Monday, prior to Fed Chairman, Jerome Powell, at 7:00pm EST.
In today’s major corporate news, earnings reports are expected from; International Game Technology (IGT) and Nordson (NDSN).
TODAY’S TOP HEADLINES
China & Trade: Top US Tech Companies Begin to Cut Off Vital Huawei Supplies. (Bloomberg)
The impact of the Trump administration’s threats to choke Huawei Technologies Co. reverberated across the global supply chain on Monday, hitting some of the biggest component-makers.
ECONOMIC CALENDAR
Today’s Economical Announcements.
08:30AM – ★☆☆ – Chicago Fed Activity (Apr) (Previous: -0.15)
07:00PM – ★★★ – Fed Chair Powell Speaks
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Tesla (TSLA): [NEWS] An analyst report at Wedbush is raising concerns about underlying demand for the automaker’s Model 3 in the US and said Tesla faces a considerable uphill climb in achieving its second half profitability goals.
Lyft (LYFT): [NEWS] Lyft was sued by a group of investors over its initial public offering. The suit said Lyft misled investors about its market position and labor matters, and that the company’s “false and misleading” statements inflated the company’s share price.
Uber (UBER): [NEWS] Uber’s initial public offering was undermined by big investors, according to The Wall Street Journal.
International Game Technology (IGT): [EARNINGS] Reported adjusted quarterly profit of 12 cents per share, well short of the 23 cents a share consensus estimate. Revenue came in below forecasts. The company managed to return to profitability, however, after reporting a year-ago loss.
GrubHub (GRUB): [NEWS] Was sued by a Philadelphia restaurateur, seeking $5 million in damages and class action status for the suit. The New York Post reports the delivery service is accused of charging restaurants for phone calls even if no order was made. GrubHub said it disputes the claims and that the suit is without merit.
Boeing (BA): [NEWS] Boeing won a wide-body jet order from Air New Zealand, according to people with direct knowledge of the matter who spoke to Reuters.
Canada Goose (GOOS): [RATING] Rated “buy” in new coverage at HSBC, which thinks the brand has strong growth prospects and that the company is successfully shifting itself to a retail-driven focus.
Lions Gate Entertainment (LGF.A): [NEWS] Received an informal offer from CBS to buy its Starz cable network, according to sources who spoke to CNBC.
Legg Mason (LM): [NEWS] Legg Mason is near a settlement with activist hedge fund Trian Management, according to Dow Jones.
Target (TGT): [UPGRADE] Upgraded to “equal-weight” from “underweight” at Morgan Stanley, which said its concerns about Target’s medium-term profit margins now appear to be reflected in the stock’s price. The retailer is scheduled to report its quarterly earnings on Wednesday morning.
T-Mobile US (TMUS): [NEWS] Is set to announce asset sales and other concessions to win approval for its deal to buy wireless competitor Sprint, according to a Bloomberg report.
MOMENTUM STOCKS
GAINERS: CRAY, UAA, CSCO
DECLINERS: EOLS, IPHI, LITE, DE, TSLA, QRVO
TODAY’S IPOs
None.