Stock futures dipped into the red Monday, feeling some negative influence from trade in Europe and Japan, despite positive early earnings and deals news.
XAutoplay: On | OffFutures for the Dow Jones industrial average, the Nasdaq 100 and the S&P 500 all lagged 0.2% below fair value. Small caps outpaced the early losses, with Russell 2000 futures off 0.4%.
The week’s economic news gets a slow start Monday, and the pace of quarterly earnings reports slows to a crawl. The GOP tax reform bill will be a focal point for the markets, with leaders in the House pushing for a vote sometime Thursday. No vote is yet planned on a separate reform bill underway in the Senate.
Meat producer Tyson Foods (TSN) muscled up 4% after reporting a strong fiscal fourth-quarter performance, lifting its full-year revenue gudiance above consensus targets and hiking its dividend 33%. The stock has been working to gain ground above a 72.32 buy point, in a handle formed on a 14-month base.
Aecom (ACM), a heavweight name in infrastructure construction. delivered fiscal fourth-quarter results above analysts targets, but its full-year 2018 earnings guidance was weaker than expected. Aecom is trading below a 37.35 buy point in a cup-with-handle base.
General Electric (GE) took an early bounce, up 1.3% to lead the Dow. The company announced it would halve its quarterly dividend to 12 cents, amid plans by Chief Executive John Flannery to concentrate the diversified leader’s efforts around its aviation, power and health-care businesses. Restructuring is also expected across the company’s corporate and management offices. Flannery had been conducting a strategic review since taking his post on Aug. 1.
Mattel (MAT) spiked 25% ahead of the open. News reports late Friday said larger competitor HasbroHAS had made an offer for the company. Hasbro shares climbed 3%. Mattel shares ended Friday down 58% from an April 2016 high.
Several China-based names were in early motion on Monday, after strong early results from the 11.11 Global Shopping Festival launched by Alibaba Holding Group (BABA) in 2009.
Four-week old Qudian (QD) perked up 6% in premarket trade, following its first report as a publicly-traded company. The wildly-volatile new issue, a China-based provider of credit and small cash loans, on Friday traded 22% below its high, and almost 15% above its Oct. 18 IPO price.
Internet retail powerhouse JD.com (JD) swung 4% higher as investors pored over its third-quarter report. Shares ended Friday in a test of resistance at their 10-week moving average, below a 46.03 buy point in a possible double-bottom base.
Alibaba shares traded up 0.6% early Monday, after ending Friday slightly extended above a 177.10 buy point in an ascending base.
Among biotech, Nektar Therapeutics (NKTR) vaulted 23% higher after announcing positive results from a phase 1 and 2 study of drugs from Nektar and Bristol-Myers Squibb (BMY) combined into melanoma treatment. Nektar ended Friday up 37% for the week, and extended above a 24.98 buy point in a cup base buy point. Bristol-Myers shares traded a fraction higher on Monday.
Global Markets: Tokyo Stocks Dive, Europe Mixed
China’s markets advanced on Monday, but profit taking was again in evidence in Japan, where Tokyo’s Nikkei 225 dropped 1.3%. Last week, the index managed to post a ninth straight weekly advance, but only after reversing off a high in a wildly volatile session on Thursday. The index has gained 17.8% since early September.
Europe’s markets were mixed, with London’s FTSE 100 up less than 0.1%, while Frankfurt’s DAX and the CAC-40 in Paris stumbled 0.5% each near midday.