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Here are five things to know for Friday, May 17th:
1. – Futures contracts fall after trade tensions
US equity futures declined on Friday, and global equities declined significantly as investors became increasingly concerned about the potential for a trade deal and its short-term impact on the global economy.
The governor of the Bank of Japan, Haruhiko Kuroda, has pledged Friday to keep interest rates close to zero until at least the middle of next year, noting that A weaker global economic outlook could make Japanese manufacturers more cautious about spending.
Kuroda's remarks echoed growing concerns about the fate of the global economy in the face of escalating trade tensions between the United States and China after Donald Trump placed China's Huawei Technologies on a blacklist. preventing dealing with US companies without prior authorization.
Chinese state media used press, television and social media platforms to excuse the US's decision to censor Huawei and to pressure the government to change its laws in order to facilitate trade liberalization. as he described China's position as "as firm as a rock".
Dow Jones Industrial Average contracts fell by 97 points, the S & P 500 futures contracts by 12.60 points and the Nasdaq futures by 40.50 points.
The US Friday economic calendar includes consumer sentiment for the month of May at 10 am ET.
Deere (DE – Get Report) released weaker-than-expected financial results in the second quarter and lowered its earnings outlook for the year, as the "slowing" of agricultural market conditions and reduced access to export markets have clouded its short-term outlook.
2. – Nvidia increases but earnings are capped after chip maker has pulled forecasts for the whole year
Nvidia (NVDA – Get Report) advanced Friday in pre-commercial trading after a profit that shattered analysts' expectations, but gains were limited after the chip maker announced that it was no longer supplying more money. 39, forecast guidance for the whole year.
Nvidia's first quarter adjusted earnings were 88 cents per share, exceeding the 30-cent forecast. Revenues dropped from $ 2.21 billion a year ago to $ 2.22 billion, roughly in line with expectations of $ 2.2 billion. Gaming revenue was $ 1.06 billion higher than forecast, while data center revenue was down 10% from a year earlier to $ 664 million. .
Nvidia said it expects a turnover of 2.5 to 2.6 billion dollars in the second quarter, while analysts were looking for a turnover of 2.54 billion dollars .
Stocks rose more than 6% after Nvidia's report, but fell after Chief Financial Officer Colette Kress made cautious remarks on the earnings conference call regarding Nvidia's short-term outlook. In pre-market trading, the stock rose 1.5% to $ 162.63.
"We are still faced, I think, with the uncertainty resulting from the break with the global hyperscale data centers, and we think this will expand in the second quarter," Kress said. "The fundamental dynamic of our business at all levels is exactly what we expected, but we will return to the quarterly forecasts for now."
"So, for now, we do not plan to give an overall direction for the whole year," she added later during the call.
"All told, even though the overall numbers exceeded expectations, the segment's results were rather mixed," said Jim Cramer and the Action Alerts PLUS team, which owns Nvidia in its portfolio. "That being said, we believe the price was more than reasonable given the data center spending pause and the resumption of gambling, as a critical factor in addressing concerns over an overabundance of GPU inventory. gambling longer than expected – again, because of the crypto-exploitation demand that has disappeared parallel to the earlier decline in cryptography prices ".
3. – Pinterest collapses after recording a wider loss than expected
Pinterest (PINS) fell 14.9% to US $ 26.27 before the market, after the image sharing service announced a larger first-quarter loss than expected by Wall Street.
The adjusted loss in the quarter was down to 38 cents from 38 cents the previous year, but was wider than the forecast for a loss of 11 cents.
First quarter revenues increased 54% to $ 202 million, compared with analysts' estimates of $ 200.7 million.
Pinterest said the total number of monthly active users increased by 22% over the previous year, reaching 291 million
The publication of the results Thursday was the first of Pinterest since its inception as a public company in April. Pinterest has performed well since it went public, priced at $ 19 a share
"The IPO was an important step, but our goal at Pinterest has not changed.We want to help people discover inspiring ideas for every aspect of their lives, from fashion to decor." home through travel and fitness, "said Ben Silbermann, co Founder, President and CEO. "Our first quarter results demonstrate our success, and we are excited to continue to expand our reach and impact in the coming years."
4. – Luckin coffee is valued at $ 4.2 billion in IPO
Luckin Coffee's initial public offering was in the top bracket of its target range. He debuted Friday on the Nasdaq for the first time. Its rival, StarCucks (SBUX – Get Report), based in China, will exceed $ 4.2 billion.
Luckin sold 33 million US depository stocks at $ 17 a share, lying above the highest range of $ 15 to $ 17 that the company's underwriters had targeted over the weeks preceding the offer. The IPO will bring about $ 571 million to Luckin.
The title will be traded under the symbol "(LK)".
Luckin has about 2,300 coffee outlets in China and plans to install another 2,500 outlets by the end of the year, while it faces Starbucks in the larger market. coffee in the world. Luckin, in fact, estimates that consumption will reach 15.5 billion cups by 2023, nearly 80 percent above last year's record levels.
Starbucks has announced plans to expand its footprint by 6,000 stores in China over the next four years, nearly double its current total.
5. Amazon Leads $ 575 Million Investment in UK Deliveroo Meal Delivery Company
Amazon.com (AMZN – Get Report) has made a $ 575 million investment in UK Deliveroo meal delivery company, making Amazon's largest investor Deliveroo the latest round of financing and expanding the reach of the giant online retail sale in the retail sale of food products.
"Amazon has been an inspiration to me personally and to society, and we look forward to working with such an organization obsessed with customers," said Will Shu, founder and CEO of Deliveroo.
The size of Amazon's investment in Deliveroo or its stake in the company has not been revealed.
Deliveroo also said that existing funders, including T. Rowe Price, Fidelity and Greenoaks, had participated in the latest round of funding.
Deliveroo, based in London, was founded in 2013 and is present in 14 countries.
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