Contracts of New York’s leading equity indices extended their losses this morning, alongside shares in Europe and Asia, as recent discord between the US and China unnerved global markets.
Over the weekend, China had issued details relating to its stance with the United States, criticizing Washington of issuing “exorbitant demands” and “resorting to intimidation and coercion”.
The white paper, released on Sunday, also included plans for a so-called “Unreliable Entities” list of US companies, as part of China’s retaliation, with a suggestion that Chinese officials would investigate FedEx (FDX) after Huawei executives accused the company of deliberately mishandling packages.
These recent developments look to broaden last week’s risk-asset instability, where fund managers have braced for a fallout of worsening global trade tensions, seeking refuge in the relative safety of Treasuries, after US President Donald Trump’s Friday vow to impose new tariffs on Mexican imports this month unless the country cuts the flow of migrants to the US.
The S&P 500 closed down -1.35%, following the volatile session that saw the index fight back and trim a -1.4% decline to just -0.7%.
In a weekly perspective, the benchmark index was ended -2.43% lower, negative -5.6% for the month of May.
Ahead, investors are likely to track developments from Washington, where officials from Mexico will meet with their American counterparts to discuss the immigration crisis along the southwestern border.
In today’s economic calendar, Monday includes; the ISM Manufacturing Index for May at 10am EST.
In earnings; Ascena Retail Group (ASNA), Box Inc. (BOX) and Coupa Software (COUP) are amongst the major companies scheduled to report today.
TODAY’S TOP HEADLINES
Politics: US-UK ties on ‘shaky ground’ as Trump arrives for three-day visit. (CNBC)
President Donald Trump’s first state visit to Britain comes fraught with the possibility of diplomatic peril, with a Conservative Party leadership contest as well as differences over Huawei and Iran likely to test the resolve of the so-called “special relationship.”
Today’s Economical Announcements.
10:00AM – ★★★ – ISM Manufacturing PMI (May) (Previous: 52.8)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Alphabet (GOOGL): [NEWS] Alphabet’s Google unit is the subject of an upcoming antitrust probe by the Justice Department, according to multiple reports.
FedEx (FDX): [NEWS] China is launching a probe of FedEx following accusations that packages intended for telecom giant Huawei were diverted.
Humana (HUM): [NEWS] In an SEC filing, Humana said it did not intend to make a proposal to combine with health insurer Centene as an alternative to Centene’s planned acquisition of WellCare Health Plans. Humana said this statement was a one-time exception to its policy of not commenting on market rumors.
Cypress Semiconductor (CY): [BUYOUT] The chipmaker will be bought by Germany’s Infineon for $23.85 per share in cash, a 34 percent premium over Friday’s close. The deal is valued at $10.1 billion including assumed debt.
Apple (AAPL): [NEWS] Apple holds its Worldwide Developers Conference Monday and is reportedly set to announce the end of its iTunes store.
Waste Management (WM): [UPGRADE] Upgraded to “outperform” from “sector perform” at RBC Capital, which cited the company’s unique positioning within its sector.
Boeing (BA): [NEWS] Some of Boeing’s 737 MAX jets may have faulty parts, according to the FAA. Boeing said it has identified 20 jets that most likely to have faulty parts and plans to check another 159 for the same parts.
Facebook (FB): [NEWS] Facebook has been in contact with the Commodity Futures Trading Commission about rolling out a digital currency, according to the Financial Times.
Blackstone Group (BX): [NEWS] Blackstone is buying industrial warehouse assets from Singapore logistics provider GLP For $18.7 billion, in what Blackstone said is the largest-ever private real estate transaction.
Wynn Resorts (WYNN), Las Vegas Sands (LVS): [NEWS] These and other casino operators in Macau may see their stocks benefit after gaming revenue in Macau hit a five-month high in May.
Goldman Sachs (GS): [NEWS] Goldman is buying Capital Vision Services from a private equity firm and a Canadian pension fund. Goldman did not reveal financial details but the Wall Street Journal reports that the deal is worth $2.7 billion.
Fiat Chrysler (FCAU): [NEWS] Fiat Chrysler is discussing an improved bid for French carmaker Renault, according to Reuters, in order to win backing from the French government for a deal.
Merck (MRK), AstraZeneca (AZN): [NEWS] The drug makers reported upbeat study results involving their Lynparza drug. The treatment successfully stalled the advance of pancreatic cancer in certain patients.
Salesforce.com (CRM): [REVIEW] J.P. Morgan Securities removed the stock from its “Analyst Focus List”, based on current valuation following a 2½ year gain of 121 percent.
DECLINERS: ZUO, NTNX, DELL, GPS, SYY, VMW, THO, LEA, FL