US stock futures gained on Tuesday, after President Trump confirmed that the US-China trade agreement is "fully intact" following conflicting comments from trade adviser, Peter Navarro, that the deal was "over".
Navarro said that the trade agreement "continues in place", reversing comments he had made earlier in an interview with Fox News.
Going forward, as yesterday, the street is betting that trillions of dollars in stimulus will shield economies from a resurgence in virus breakouts and will prevent a need for both new social and business restrictions.
Ahead, today's economic calendar includes; the PMI Composite Flash for June at 9:45am EST and New Home Sales for May at 10am EST.
Earnings reports are expected today from; IHS Markit (INFO) and La-Z-Boy (LZB).
TODAY'S TOP HEADLINES
Politics: Trump Says China Deal Intact After Navarro Roils Markets. (Bloomberg)
US President Trump said the phase one trade deal with China was “fully intact”, after his adviser sowed confusion with comments interpreted as a decision to end the agreement.
Today's Economical Announcements.
09:45AM - ★★☆ - Manufacturing PMI (Jun) (Previous: 39.8)
09:45AM - ★★☆ - Services PMI (Jun) (Previous: 37.5)
10:00AM - ★★★ - New Home Sales (May) (Previous: 623K)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
American Airlines (AAL): [NEWS] Will increase the aggregate size of planned convertible and secondary stock offerings to $2 billion from $1.5 billion, according to a Bloomberg report.
Spirit AeroSystems (SPR): [NEWS] Is asking its lenders for financial relief, as it deals with the fallout of the Covid-19 pandemic and the production halt for Boeing’s (BA) grounded 737 Max jet. Spirit is Boeing’s largest supplier.
IHS Markit (INFO): [EARNINGS] Reported quarterly profit of 69 cents per share, 2 cents a share above estimates. Revenue was slightly short of forecasts as organic revenue fell 7%. The company said the quarter was “challenging” due to the pandemic but that it expects profit and earnings growth this year and next.
ViacomCBS (VIAC): [NEWS] Will debut its new “SpongeBob” movie on digital platforms in early 2021, bypassing movie theaters. “The SpongeBob Movie: Sponge On The Run” will first be available via pay-per-view, and then move exclusively to the company’s CBS All Access streaming service.
Peloton (PTON): [REVIEW] Cowen called the fitness equipment maker its best “SMIDCAP” idea, even though shares are already up 75% this year. Cowen points to an increase in engagement and subscriptions, helped by the pandemic as well as marketing efforts.
BlackRock (BLK): [NEWS] CEO Larry Fink said the asset management firm was committed to increasing its Black workforce by 30% by 2024. BlackRock also plans to double the percentage of Black senior leaders from the current 3%.
Starbucks (SBUX): [NEWS] Is debuting the “Impossible Breakfast Sandwich” in its stores today, along with two new cold coffee beverages. That could impact shares of Impossible Foods competitor Beyond Meat (BYND), although Starbucks also carries some of Beyond’s offerings.
Mastercard (MA), Visa (V): [DOWNGRADE] Oppenheimer downgraded Mastercard to “perform” from “outperform,” while maintaining Visa as “outperform” and raising the price target to $202 per share from $190 a share. Oppenheimer bases the changes on expectations that Visa will regain market share and sees purchase volume accelerating in the European market.
Micron Technology (MU): [DOWNGRADE] Downgraded to “market perform” from “outperform” at BMO Capital Markets, which cites a balanced risk/reward profile amid decelerating fundamentals for the memory chip market.
Salesforce.com (CRM): [NEWS] Announced a collaboration with Germany’s Siemens on a workplace safety software suite. The software will help in aiding social distancing in various aspects of workplace operations.
T-Mobile US (TMUS): [NEWS] Has kicked off the sale of $21 billion in T-Mobile shares. The Japanese firm is seeking to raise funds for a $41 billion debt reduction and stock buyback plan. T-Mobile itself is buying a substantial portion of those shares.
Intuit (INTU): [NEWS] Cut 715 jobs, and said it is revamping its technology and sales strategies. Impacted workers will receive a minimum of four weeks salary as well as two additional weeks for every year of service.
AbbVie (ABBV): [UPGRADE] Upgraded to “overweight” from “neutral” at Atlantic Equities, which points to increased earnings visibility for the maker of Humira and other drugs following the completion of its Allergan acquisition.
GAINERS: NVTA, SONO, FSLY, CORT, BOX, INVA, ARWR, INCY
DECLINERS: RRGB, PLAY, AAL
WE WILL SHOW YOU THE WAY!