US equity futures fell alongside shares in Europe, while Asian stocks were mixed, as investors assessed weaker-than-expected industrial data from China, while marking time before upcoming interest rate decisions from some of the world's leading central banks.
Overnight, China had posted its steepest decline in factory gate inflation in three years, suggesting that Chinese manufacturers are having to slash prices in order to maintain order-flow and offset the impact of tariffs on goods imported into the United States.
On the trade-negotiation front, Treasury Secretary, Steven Mnuchin, said on Monday that the US and China have “made a lot of progress” on talks, adding; “we're prepared to negotiate. If we can get a good deal, a deal that's good for us, we'll sign it".
Aside from trade, investors will also await the ECB’s policy decision on Thursday, and those next week by the Federal Reserve and Bank of England, as they assess the impact of near-term monetary support.
Analysts expect the European Central Bank to cut 10 basis points from its benchmark interest rate, while the US Federal Reserve is broadly expected to follow, with projections predicting a 25 basis point rate cut.
This morning’s shift comes after Monday’s session, where Wall Street’s S&P 500 index finished flat (+0.05%), as investors weighed the prospect of these central bank stimulus measures.
On sector watch; Energy (+2.0%) was the session's leading gainer, who’s advance was offset by losses in Healthcare stocks (-0.92%).
Ahead, in today’s economic calendar, Tuesday includes; Job Openings data July at 10am EST.
In corporate news; Dave & Buster's Entertainment (PLAY), GameStop (GME), Zscaler (ZS) and RH (RH) are all scheduled to report today.
TODAY'S TOP HEADLINES
Brexit: Boris Johnson to Work for Brexit Deal After Losing Six Key Votes. (Bloomberg)
After Parliament blocked his Brexit strategy, and then refused to give him the election he wanted, UK Prime Minister Boris Johnson is promising to work for a deal with the European Union.
Today's Economical Announcements.
10:00AM - ★★★ - JOLTs Job Openings (Jul) (Previous: 7.348M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Wendy’s (WEN): [NEWS] Will spend about $20 million to bring breakfast offerings to its more than 5,800 domestic locations. The restaurant chain will expand its hours, add menu items, and hire about 20,000 new workers as part of that effort.
HD Supply (HDS): [EARNINGS] Matched estimates with adjusted quarterly profit of $1.08 per share, but revenue missed forecasts. The company – which characterized the start of fiscal 2019 as “difficult” – gave an adjusted full-year EPS forecast of $3.45 to $3.60 per share, compared to the consensus estimate of $3.58 a share.
Ford Motor (F): [NEWS] Ford’s debt rating was cut to junk status by Moody’s Investors Service, which cites weaker cash flow and falling profit margins for the automaker.
Mallinckrodt (MNK): [NEWS] Sold its contract development and manufacturing unit BioVectra to an affiliate of private-equity firm H.I.G. Capital for about $250 million.
Ctrip.com (CTRP): [EARNINGS] Reported adjusted quarterly earnings of 32 cents per share, beating the 29 cents a share consensus forecast. The China-based travel services company’s revenue came in below estimates, however.
Fox Corp. (FOXA): [DOWNGRADE] Downgraded to “underweight” from “overweight” at Atlantic Equities, which cited several factors including faster than expected cord-cutting by consumers.
Altria (MO): [DOWNGRADE] Downgraded to “neutral” from “overweight” at Piper Jaffray, which points to concerns about a potential merger with Philip Morris.
Wells Fargo (WFC): [DOWNGRADE] UBS cut its rating on Wells Fargo to “neutral” from “buy,” saying the bank still lacks visibility on profitability improvement. UBS cut its earnings estimates for Wells Fargo on prospects for lower net interest income.
Exxon Mobil (XOM): [NEWS] Is in advanced talks to sell some Gulf of Mexico deepwater assets to Spain’s Repsol for about $1 billion, according to people familiar with the matter who spoke to Reuters.
Facebook (FB): [NEWS] Will have to face most of a class action suit seeking damages for alleged privacy violations, following a ruling from a federal judge.
Callon Petroleum (CPE): [NEWS] Said it remains confident in the strategic and financial benefits of its proposed $3.2 billion acquisition of Carrizo Oil & Gas (CZRO). The statement came after Callon stakeholder Paulson & Co. urged Callon to drop the deal and consider selling itself instead.
PG&E (PCG): [NEWS] Unveiled its proposed bankruptcy exit plan, which would raise $14 billion to pay damages from deadly California wildfires.
Sanderson Farms (SAFM): [NEWS] Received a Justice Department subpoena related to the Department of Justice’s investigation into chicken pricing. The probe is examining allegations that poultry producers like Sanderson, Tyson Foods, and Pilgrim’s Pride conspired to fix poultry prices.
Mosaic (MOS): [NEWS] Announced a $250 million share buyback plan, and the fertilizer producer also said it would idle its Louisiana phosphates operations to cut production. Increased imports of phosphates have put downward pressure on pricing this year.
GAINERS: THC, HTZ, SYNA
DECLINERS: MDLA, AYX, PD, CRWD, RGEN, EXAS, OKTA, TWLO
WE WILL SHOW YOU THE WAY!