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Here are five things you need to know for Tuesday, February 26th:
1. – Inventories decline because of geopolitical risks
US equity futures traded down on Tuesday, Feb. 26, and global equities declined on a series of geopolitical risks that wiped out the Asian region's appetite and could spread to the US stock market. Wall Street bargaining ahead of Federal Reserve Chairman Jerome Powell's testimony in the Senate.
Donald Trump traveled to Vietnam on Wednesday for a summit with North Korean leader Kim Jong Un in Hanoi, during which the two men will try to consolidate the terms of their 2018 meeting in Singapore with the aim of denuclearizing the country. Korean peninsula.
Trump told reporters Monday in Washington before traveling to the region, however, that his commercial team was "very close" to reaching an agreement with China after weeks of negotiations between Washington and Beijing, adding that "it could produce enough soon, or might not happen at all. "
Trump's position on trade negotiations, despite its decision to extend the March 1 deadline on tariffs, pulled Asian equities from their five-month highs and pushed US equity futures to the decline.
At the same time, Pakistan said that India had launched on Tuesday an airstrike on its territory, following a suicide bombing attack in the Pulwama district, in the disputed region of Kashmir, which killed 40 Indian policemen.
Dow Jones Industrial Average contracts fell 88 points, S & P 500 futures lost 5.75 points and Nasdaq futures dropped 22.25 points.
Powell will present his semi-annual financial report to the Senate Committee on Banking, Housing and Urban Affairs at 10:00 am ET.
Last month, the central bank stopped to raise interest rates and said it was determined to show "patience" for future interest rate increases, despite economic growth American deemed "solid" by the Fed. The Fed raised interest rates four times in 2018.
The US economic calendar on Tuesday includes housing starts for December at 8:30 am, the S & P Corelogic Case-Shiller housing price index for December at 9 am, the FHFA housing price index for 9 am and consumer confidence for February at 10am
2. – SEC requests judge to hold Tesla Musk in contempt of court
The Securities and Exchange Commission has asked a judge to convict Elon Musk, CEO of Tesla Inc. (TSLA), in contempt of court for breaking the terms of his settlement with the agency with a recent tweet.
The SEC said that February's Musk tweet, in which it appeared to reveal important information about Tesla's production schedule, violated an October 2018 regulation that prohibited Musk from sharing information about the company without prior agreement of a lawyer. The settlement itself, reached through the intermediary of US District Judge Alison Nathan, was linked to an August 2018 tweet from Musk regarding a privatization project of the electric car maker that, according to the SEC would mislead investors.
"(Musk has) once again published inaccurate and material information about Tesla to its more than 24 million followers on Twitter, including members of the press, and made this inaccurate information available to anyone with more information. Access to the Internet, "the SEC said in documents filed with the federal government. Court in Manhattan. "Musk thereby violated the court's final judgment in adopting the conduct that the pre-judgment provision on prior approval was intended to prevent."
Musk tweeted and revised a tweet about Tesla's production projections on February 19th.
This means that the annualized production rate at the end of 2019 should be around 500 000, or 10 000 cars / week. Deliveries for the year are still estimated at approximately $ 400,000.
– Elon Musk (@elonmusk) February 20, 2019
Under the terms of the deal reached with the SEC last October, Musk was to resign as president of Tesla and pay a $ 20 million fine resulting from a tweet of "privatization" claiming wrongly that he had financing to privatize Tesla at $ 420. share.
The company was also forced to pay a $ 20 million fine, appoint additional independent directors and "put in place additional controls and procedures to oversee Musk's communications," the SEC said in a statement. time.
Tesla shares fell 2.9% to $ 290.08 in pre-market trading on Tuesday.
3. – The Home Depot, Macy's, and Palo Alto Networks Results Report
Home Depot Inc. (HD) reported lower-than-expected earnings in the fourth quarter, thanks in part to a $ 247 million charge from the Interline brand division, while forecasting slower earnings growth in 2019.
Home Depot said earnings per share of $ 2.09, far from the consensus of $ 2.16 set on Wall Street. Revenues were $ 26.5 billion, up 10.8%, but did not reach the consensus estimate. Home Depot reported receiving a 16-cent charge during the quarter related to its Interline Brands division.
In 2019, The Home Depot reported comparable store sales growth of approximately 5%, after a 4.2% fourth quarter rate and a 3.7% rate in the United States. The 2019 annual result is expected to grow by 3.1 percent to $ 10.03 per share, well below Refinitiv's forecast of $ 10.26, and total revenue is expected to grow 3.3 percent, for a total $ 111.77 billion.
Financial results of Macy's Inc. (M), Palo Alto Networks Inc. (PANW), Toll Brothers Inc. (TOL), JM Smucker Co. (SJM), Discovery Inc. (DISCA) and from Papa John's International Inc. (PZZA), Weight Watchers International Inc. (WTW) and Mylan NV (MYL).
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4. – AT & T could learn Tuesday the fate of Time Warner Deal – Report
As of Tuesday, AT & T Inc. (T) could find out if it can finally proceed with the acquisition of Time Warner and leave behind the legal battle with the Department of Justice over the $ 85 billion contract, announced Bloomberg .
As part of an agreement with the Department of Justice, AT & T has promised to entrust Time Warner's Turner Broadcasting with a separate division of its DirecTV business. He also agreed to a firewall between the two. This agreement, which aimed to prevent full integration of businesses if the government won the call, would expire on Thursday, Bloomberg noted.
Because the appeals court renders its opinions on Tuesday and Friday morning, it is expected to rule Tuesday on the appeal of the Department of Justice before AT & T can stop it. separation agreement and proceed with the integration, according to Bloomberg.
5. – Shake Shack stumbles, the forecast disappoints
The stock fell 3% after Monday trading hours.
Adjusted earnings for the quarter were 6 cents per share, ahead of analysts' expectations of 3 cents, while revenues of $ 124.3 million exceeded estimates of $ 119.1 million. Same-store sales increased 2.3% in the fourth quarter.
Shake Shack said he expects a turnover of $ 570 to $ 576 million in 2019 and a turnover of more than $ 700 million in 2020. Analysts were asking for revenue from $ 575.5 million in 2019 and $ 720.5 million in 2020.
The company said it expects same-store sales to grow by 1 percent in 2019 compared to analysts' forecasts of a gain of 0.8 percent.
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