Futures contracts across the S&P 500, Dow Jones and Nasdaq 100 had all shown signs of impact into the early hours of the morning, pointing to a significant slump, as investors were left guessing as to what comes next in the trade war between the US and China.
With no date scheduled for a resumption in negotiations between both parties, widespread industry downturns were recorded across both Asian and European markets overnight – a tone which looks to ripple across to US shores.
These declines come in spite of both economic superpowers having worked hard to project calm and emphasize a plan to continue negotiations on Friday, with investors seemingly sensing a ‘blame-game’ of fundamental division between the two sides, casting doubt on a near-term agreement.
During today’s session, American officials are expected to announce further details of their plans to boost tariffs on all remaining imports from China; some $300 billion in trade, while Beijing looks conjure a “retaliation”.
This week’s poor start looks extend upon last week’s declines, where the S&P and Nasdaq both suffered their heaviest weekly pull-backs since December, despite Friday’s rally on renewed trade hopes, after President Donald Trump said the latest round of trade talks between the US and China were “candid and constructive”.
The S&P 500, which had been down by as much as -1.6%, during Friday morning, bounced back to close +0.50% higher. The Dow Jones Industrial Average also turned positive, up +0.57%, after falling as much as -1.4%, while the Nasdaq Composite rose +0.12%, erasing a -1.8% intraday loss.
However, on a weekly record, The S&P 500 and tech-heavy Nasdaq Composite posted weekly losses of -2.02% and -3.20% respectively, while the Dow closed out -1.91% lower, its worst week in two months.
In today’s corporate news, major earnings releases as expected from; Take-Two Interactive Software (TTWO), WageWorks (WAGE) and Tencent Music Entertainment Group (TME).
Monday’s economic calendar is bare – although, important releases such as Import and Export Prices, Retail Sales, Housing Starts and Consumer Sentiment are all expected to be released later in the week.
TODAY’S TOP HEADLINES:
China & Trade: Trump Warns China Impasse to Worsen If Xi Retaliates on Tariffs. (Bloomberg)
President Donald Trump threatened that the trade standoff with China will “get worse” if there is retaliation for US tariffs that go into effect on Chinese goods Monday.
IPO: Uber Shares Decline for Second Day in US Pre-Market. (Bloomberg)
Uber Technologies (UBER) shares fell further after a rocky debut on Friday for the biggest initial public offering of the year.
Today’s Economical Announcements.
09:10AM – ★☆☆ – FOMC Member Speeches: Clarida and Rosengren
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks.
Weatherford International (WFT): [NEWS] Weatherford plans to file for Chapter 11 bankruptcy protection.
Teva Pharmaceuticals (TEVA): [NEWS] Is among 20 drug companies facing a lawsuit by US states accusing them of scheming to inflate drug prices.
Qualcomm (QCOM): [NEWS] Awarded its executive team stock bonuses after its multi-billion settlement with Apple over long-standing patent disputes. That included a stock bonus worth about $3.5 billion for CEO Steve Mollenkopf.
Walt Disney (DIS): [NEWS] Disney’s “Avengers: Endgame” topped the weekend box office for the third straight weekend, with $63.1 million in North American ticket sales.
Pinterest (PINS): [RATING] Citi rates Pinterest a “buy” in new coverage, saying it has done an effective job of growing its audience and monetizing its platform.
Philip Morris (PM): [NEWS] Has suspended a global social media marketing campaign involving its new heated tobacco device. That came in response to inquiries by Reuters into the campaign’s use of youth-oriented online personalities.
Charter Communications (CHTR): [NEWS] Offering its subscribers exclusive original shows starting this month, including a reboot of NBC’s popular 1990s sitcom “Mad About You”.
Nielsen Holdings (NLSN): [NEWS] Lowered its sale price in hopes of keeping private equity firm Advent International at the bargaining table, according to the New York Post.
Merck (MRK): [UPGRADE] Upgraded to “overweight” from “neutral” at Atlantic Equities, which cited a number of positive factors for the drugmaker including valuation and the ability for its new products to overcome patent headwinds.
KB Home (KBH): [UPGRADE] Barclays upgraded the home builder’s stock to “overweight” from “equal weight,” saying housing market fundamentals have improved and stabilized but that KB Home’s valuation still reflects a deteriorating market.
GAINERS: NTRA, KTOS, ZS, HSC, RCM
DECLINERS: QRTEA, FSCT, YELP, ECAS, ELY, AMRX, TVTY, AMRX, TTD