By Benjamin J. Chuckrow
Tuesday, May 22, 2018 – Stock index futures are indicating a higher open Tuesday. The Dow and S&P 500 are both up 0.2% in pre-market trading, while the Nasdaq 100 is trading 0.3% above fair value on GLOBEX.
The major averages are poised to advance amid easing geopolitical tensions. The U.S. and China agreed on a broad outline of a deal that would lift restrictions on Chinese Telecom firm ZTE Corp., while also lowering China’s duty on imported cars. On the data front, the Richmond Fed Manufacturing Index is today’s sole domestic economic release.
In earnings, retailer Kohl’s is rising 5.2% to $68.85 after topping Wall Street revenue and same-store sales estimates. Advance Auto Parts is climbing 4.5% to $124.50, while Autozone is adding 2.4% to $681.00 after both companies posted positive profit tallies. Meanwhile, homebuilder Toll Brothers is slipping 4.2% to $41.79 after missing consensus earnings estimates. In other corporate news, Micron Technology is jumping 6.7% to $59.18 after announcing its largest ever share buyback program of $10 billion.
European bourses are higher near mid-session. The European STOXX 600 is rising 0.2%. The U.K.’s FTSE 100 is up 0.2% in London, while Germany’s DAX is advancing 0.6% in Frankfurt. Overnight in Asia, the Nikkei 225 dipped 0.2%, while China’s Shanghai Composite finished less than 0.1% higher.
Treasuries are slightly weaker with the yield on the benchmark 10-year note up one basis point to 3.07%. In commodities, WTI crude is gaining 0.2% to $72.51/barrel. COMEX gold is advancing 0.3% to $1294.50/ounce, amid a weaker dollar.
This information was prepared by or obtained from sources that Wells Fargo Advisors believes to be reliable, but its accuracy is not guaranteed. The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgment of the authors as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Contact your Financial Advisor for additional information.
Benjamin J. Chuckrow
Senior Vice President – Branch Manager
Wells Fargo Advisors, LLC