Here are five things to know for Friday, March 1st:
1. – Inventories benefit from the progress of trade between the United States and China
US futures were up on Friday, March 1, and global equities rose sharply, spurred by the move from one of the largest providers of market indices to increase the weighting of Chinese equities on equity indexes. global reference and by optimistic comments on trade negotiations between the two countries of Donald Trump's top advisors.
MSCI, which sets benchmarks for global equity markets, will quadruple the weighting of Chinese equities to around 3.3% of the leading emerging markets index, compared with around 0.7% for November. . The provider said the decision could generate additional capital inflows of about $ 80 billion, as fund managers seek to rebalance portfolios around new benchmarks.
The shares received a boost thanks to comments from Larry Kudlow, economic advisor to the White House, who told CNBC Thursday that there had been "fantastic" progress in trade negotiations last week, including thanks to the text of US Trade Representative Robert Lighthizer officials.
"We are moving towards a remarkable historic agreement," predicted Kudlow. "The documents are very clear: I mean, even things like agreement on the currency … no manipulation, they must report any intervention in the market."
Dow Jones Industrial Average contracts increased by 174 points, S & P 500 futures contracts by 17.25 points and Nasdaq futures contracts gained 53.50 points.
The US economic calendar on Friday includes personal income and expenses for the months of December and January at 8:30 am ET, the manufacturing PMI for February at 9:45, the ISM Manufacturing Index for February at 10:00 am and consumer sentiment for February. at 10 o'clock
Foot Locker (FL) posted stronger comparable fourth-quarter earnings and comparable sales and announced double-digit earnings growth over the next year. The stock climbed 13.9% Friday in pre-market trading.
US automakers, such as Ford (F), will release sales for the month of February all day.
In the United States, sales are expected to fall about 1% in February from the previous year, partly due to adverse weather conditions, industry consultants said JD Power and LMC Automotive. Vehicle sales in the United States totaled about 1.29 million units in February.
2. – Tesla unveils model 3 worth $ 35,000, but expects a loss in the first quarter
Tesla (TSLA) on Thursday launched its long-delayed $ 35,000 Model 3 electric car, but the announcement was eclipsed by CEO Elon Musk, saying the company would likely not be profitable in the first quarter.
During a teleconference, Musk told reporters that the expenses associated with launching sales of his Model 3 in Europe and China, as well as one-time charges during the quarter, mean "we do not expect to be profitable "in the first quarter, reported CNBC.
Tesla shares were down 4.2% in pre-market trading on Friday.
The electric vehicle company said in a blog post that it would move its online sales operations to reduce costs. This decision "will allow us to lower the prices of all vehicles by about 6% on average, which will allow us to reach the price of $ 35,000 from model 3 earlier than expected," the report said. society.
Tesla said it would close "several" its stores over the next few months, "with a small number of stores located in busy locations that will remain in the form of galleries, showcases, and information centers. on Tesla ".
The cheaper version of Model 3, introduced by Musk in the tweets earlier this week, aims to expand the company's market share to buyers intrigued by its technology, but put off by the high prices of its luxury models and its top model 3. The 3 cheapest model comes with a reduced range of 220 kilometers and a slender interior.
Tesla is facing increased pressure to generate profits with the arrival of a number of large convertible bond issues.
She started shipping 3 high-end models in Europe this month and inaugurated a factory in China.
3. – Gap plans to split two companies and close 230 stores
Gap Inc. (GPS) has announced plans to close more than 200 stores and split into two publicly traded companies – one for Old Navy and the other for Gap, Banana Republic and other brands.
"After a thorough review by the Gap Board of Directors, it is clear that the business model and Old Navy customers are moving away from more and more of our specialized brands and that every company has now need a different strategy to thrive, "said President Robert Fisher to a statement announcing the move.
"Recognizing this, we determined that separation was the most compelling way for our brands – by creating two distinct companies with distinct financial profiles, tailored operational priorities and unique capital allocation strategies, both well positioned to achieve their strategic goals and create meaningful value for our customers, employees and shareholders, "said Fisher.
Gap plans to separate the two companies through a non-taxable spin-off company: a former independent navy and a second company that has not yet been named. The current shareholders of Gap will get shares in each company after the split, probably in 2020.
The new company would have an annual turnover of about $ 9 billion, according to Gap.
In addition, Gap posted earnings per share of 72 cents in the fourth quarter, up from 52 cents a year earlier. Sales during the quarter were $ 4.6 billion, down from $ 4.8 billion a year earlier.
Analysts expected earnings per share of 67 cents for a turnover of $ 4.7 billion.
4. – The CEO of HBO withdraws in favor of AT & T restructurings
Richard Plepler, President and CEO of HBO, announced his resignation Thursday in a memo. David Levy, president of Turner, parent company of cable channels CNN, TNT, TBS and Cartoon Network, will also resign, perhaps as early as Friday, people familiar with the subject told the Wall Street Journal.
The resignation of Plepler, who has led HBO since 2013 and played a leading role in the success of shows such as "Game of Thrones", comes as AT & T (T) reorganizes the operations of Warner Bros., HBO and Turner. Under the previous owner Time Warner and his then CEO, Jeff Bewkes, the units had operated very autonomously, the Journal noted.
In the meantime, AT & T is in advanced talks with veteran TV executive and producer Robert Greenblatt to play a leading role at WarnerMedia, as Time Warner's new image comes to the fore. This could include overseeing a new unit combining HBO and Turner entertainment networks and a streaming service, the Journal reported.
5. – VMware rises after gains and sales
VMware (VMW) reported a 2.6% increase in pre-market sales, after fourth quarter earnings and revenues for the enterprise software company surpassed Wall Street expectations.
The company reported adjusted earnings over the period of $ 1.98 per share, exceeding estimates by $ 1.88 billion. Revenues for the period were $ 2.58 billion, exceeding analysts' expectations of $ 2.5 billion.
VMware shares have increased by more than 25% since the beginning of the year.