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Stock Futures Pare Losses On Banking Vote; This China Travel Name Jumps

Stock futures nosed down hard after Tuesday’s close, then recovered to trade flat as the House approved a banking reform bill and markets weighed President Trump’s comments on North Korea and China. In addition, a passel of after-hours earnings reports triggered mixed stock futures reaction from Urban Outfitters (URBN), Hewlett Packard Enterprise (HPE), Intuit (INTU) and Ctrip.com International (CTRP).

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Futures for the Dow Jones industrial average slumped 0.7% below fair value, then reversed to narrow gains. S&P 500 futures also reversed to trade above fair value. Nasdaq 100 futures backed out of fractional losses and edged into positive territory.

News out of the White House and other portions of the U.S. capital factored into Tuesday’s late trade. Markets shifted lower late in the day, after the president cast increasing doubt on his June 12 summit with North Korean leader Kim Jong Un. Promised purchases and trade tariff reductions by China stirred optimism in early trade Tuesday, but it also grew clear that the concessions would not nearly approach the $200 billion trade gap reduction targeted by the administration. A bipartisan group of lawmakers also moved to block the president’s effort to ease sanctions against Chinese telecom giant ZTE.

At the same time, the U.S. Treasury Department broadened the U.S. sanctions again Iran, targeting five key individuals reportedly responsible for supplying rebels in Yemen with missiles that have been fired into Saudi Arabia.

The House of Representatives passed a specific set of rollbacks to Dodd-Frank banking reforms that had cleared a Senate vote in March. The rule primarily benefits smaller banks, lifting the threshold beyond which institutions face increased federal scrutiny to $250 billion. Dodd-Frank had set the compliance threshold at $50 billion. Bank stocks traded modestly higher after hours. SunTrust (STI) posted one of the better moves, up 1%.

Hewlett Packard Futures Up; Urban Outfitters Dives; Lowe’s, Target To Report

Earnings news was generally not good in extended trade. The Container Store (TCS) tumbled 11% lower. Red Robin Gourmet Burgers (RRGB) chewed off a 16% loss. Both reported earnings Tuesday after the close.

Urban Outfitters dropped 3.2%, despite reporting a powerful beat with its first-quarter sales and earnings. The stock had dropped 2.6% during Tuesday’s regular trade. That left it almost 5% below its May 17 high, and still extended above a 36.20 buy point.

Hewlett Packard Enterprise traded ahead 0.2% after a strong fiscal second-quarter earnings performance. The stock is looking to regain support at its 10-week moving average, 10 weeks into a possible base pattern.

Intuit dipped 0.2% as investors weighed soft fiscal fourth-quarter earnings guidance against a strong third-quarter sales and earnings beat. The stock is up 21% year-to-date, and is in a profit-taking zone following a September breakout.

China-based Ctrip.com International shed its early premarket loss and added almost 2% as investors dug into its first-quarter results. The stock has been fighting to exit a downtrend since July.

On Wednesday’s earnings calendar, retailers Lowes (LOW), Target (TGT) and Tiffany & Co. (TIF) are scheduled to report before the open. NetApp (NTAP), Synopsis (SNPS) and Copart (CPRT) deliver reports after the close.

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