Global Markets Pause After Record Day, Retail Earnings Dazzle, Trade Hope Continues To Simmer

The U.S. Futures Are Flat In Early Tuesday Trading

The U.S. index futures are indicating a flat open on Tuesday following Monday’s record-setting rally. The S&P 500, NASDAQ Composite, and Dow Jones Industrial Average are all up 0.05% to 0.10% despite a number of positive headlines. On the trade front, Chinese Vice Premier Liu He reportedly called the White House this morning in order to discuss resolving “core issues”. On the earnings front, stellar reports from Best Buy and Dicks points to solid results over the holiday shopping season. The holiday shopping season begins this week and is expected to deliver upwards of 4.5% YOY growth.

Shares of Best Buy are up more than 4.0% in early trading. The big-box technology and electronics supplier says 3rd quarter results were better than expected and raised guidance for the full-year. Shares of Dick’s Sporting Goods are up more than 12% after delivering similar results. Shares of Chipotle Mexican Grill are also moving higher. The company received an upgrade calling it the “best idea for 2020” and shares gained more than 2% on the news.

On the economic front, there were two important comments from FOMC members. On the one hand, Fed President Kaplan says the U.S. 4th quarter economy is weak and cites reductions in inventory spending. On the other, Fed Cheif Jerome Powell says the committee is committed to its 2% target suggest they are as done with rate-cutting as they have led the market to believe.

EU Markets Are Flat And Mixed, UK Politics Begins To Heat Up Again

The EU markets are flat and mixed at midday on Tuesday. The DAX, FTSE, and CAC are all hovering near break-even levels with moves in the range of -0.10% to 0.10%. The moves are driven in part by today’s trade news and word the UK Conservative Party’s lead has narrowed. The UK general election is slated for December 12th, just 3 days before the U.S./China tariff deadline, and the Conservative Party lead has narrowed to only 7 points. If Boris Johnson is ousted by the Labour Party we can expect no-Brexit anytime soon.

In stock news, shares of Just Eat are up about a half percent after the board issued a letter to shareholders. The board of Just Eat says not to accept the offer from Prosus as it is inferior in value to Just Eat shareholders. Shares of Vifor Pharma are also on the move at midday. The pharma company says it has achieved positive results in a test of a new therapy. Shares are up 5.0%.

Asian Markets Are Mixed On Tuesday

Asian indices closed the day mixed on Tuesday. Market participants cheered the record highs on Wall Street but concerns for trade and economic growth capped gains. The Nikkei advanced 0.35% while the Shanghai gained only 0.03%. The Australian ASX led gainers with a move of 0.83%. At the other end of the spectrum, the Hong Kong Hang Seng and Korean Kospi both posted small losses.