Markets Edge Higher, Trade Hopes Rise, Weak Data Drags On Sentiment

The U.S. Market Is Up In Early Tuesday Trading

The U.S. futures market is pointing to a slightly higher open on Tuesday. The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite are all up about 0.30%. The move is fueled by trade optimism although weak data from the EU capped gains. In trade news, Treasury Secretary Steve Mnuchin says trade talks will resume in two weeks. Mnuchin and Trump say China is ready to buy more agricultural products and that is echoed by news from China. Chinese media sources report the country has issued waivers for 2 million tons of U.S. soybeans and 1.2 million are already purchased.

In stock news, shares of Apple, Caterpillar, and Boeing are up about 1.0% on the apparent thaw in trade relations. In other news, Carmax reported earnings before the open and beat on the top and bottom lines. The news has the shares on the move and up 2.5% in premarket trading. Autozone reported mixed results in that revenue grew 12% and beat expectations but EPS fell short. Shares of the stock held relatively flat on the news, strong comp store sales have analyst hopeful future revenue and EPS will continue to grow.

EU Markets Mixed, Johnson’s Parliament Suspension Is Unlawful

The EU markets are mixed and flat at midday on Tuesday. The trade news is supporting stocks but geopolitical woes and specifically Brexit unease have traders cautious. The DAX is flat and barely above breakeven, the CAC is up about 0.15% and the FTSE down -0.35%. In the UK, sentiment is souring on increasing Brexit unease. The UK Supreme Court ruled Boris Johnson’s suspension of Parliament was unlawful. The court says the leaders of the two houses must now decide what to do next. If Parliament resumes it is assured there will be renewed debate and additional delay to the Brexit.

In stock news, shares of Manchester United are moving lower. The publicly traded football organization grew revenue by nearly 10% but failed to produce a profit for investors. Shares are down more than -1.0% in early trading. In economic news, German business sentiment rose in the last month but remains low. The bad news is the outlook for future conditions fell to a new ten-year low.

Asia Mixed, Flat and Directionless

Asian markets are mixed, flat, and directionless at the end of trading on Tuesday. While trade hopes are on the rise the small improvements may be too little too late. Weak data from the EU on Monday only added to the malaise. The Kospi is up about 0.45% while the Shanghai Composite and Hang Seng are both up about 0.25%. The Nikkei is up about 0.10% and the ASX is down -0.01%.