Earnings Season Winds Down, Tariff Roll Back Uncertain, Chinese Export Data Better Than Expected

Global markets edge lower after new worries on U.S./Sino trade relations take hold.
Thomas Hughes

The U.S. Market Is Flat In Early Friday Trading

The U.S. futures are indicating a flat open for the major indices on Friday. The NASDAQ Composite is showing the largest move, -0.15%, while the Dow and S&P 500 are both hugging break-even. Today’s move caps a solid weak for the market but traders should be wary.

Price action on the S&P 500 is choppy at these new highs and trade relations between the U.S. and China are still on shaky ground. Thursday’s reports that both sides had agreed to roll back tariffs were met with uncertainty today. Comments from Peter Navaro and Larry Kudlow seem to put the rollback in the yes-no-maybe-so territory.

In stock news, shares of Disney are up more than 5% in early Friday trading. The global entertainment company says revenue in all segments surpassed expectations. Earnings also came in above consensus. There are no major earnings reports due out after the bell. The economic calendar is light today. The only report of interest is Consumer Sentiment due out at 10 AM. Next week’s calendar is also light but includes key reads on CPI, PPI, and Retail Sales.

European Markets Are Down At Midday

The European markets are mostly lower at midday as trade concerns overshadow all else. Basic resources are in the lead with an average decline of -1.2%. Shares of Tenaris, Anglo American, and Evraz are all down more than -2.0%.  The UK FTSE 100 leads the indices with a loss of -0.40% while the DAX and CAC trail with declines of -0.35% and -0.25%.

In other news, shares of Richemont are down -5.0% after the company reported earnings. The luxury watchmaker reported weaker than expected revenue and earnings citing unrest in Hong Kong as a contributing factor. Beazley, a major issuer of insurance, reported earnings and provided negative guidance. Shares rose more than 4% though due to a better than expected outlook for 2020.

Asian Indices Move Lower, Japan Bucks The Trend

Most Asian markets moved lower in Friday’s session. The Hong Kong Hang Seng led with a loss of -0.70% while the Shanghai  Composite and Korean Kospi suffered smaller losses. The Australian ASX closed virtually flat and the Japanese Nikkie posted a small gain. The Nikkie was supported by a rebound in shares of Softbank. The investment giant saw its shares rise 2.8% after suffering Thursday’s big losses. Tencent led declines in Hong Kong, falling -2.04%, while SK Hynix led in Korea with a fall of -1.56%.

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