1. — Stocks Slip as Trump Renews Threats of China Tariffs
U.S. stock futures declined and global shares traded mixed on Tuesday, Nov. 27, with investors taking a cautious stance following comments from Donald Trump that suggested his weekend summit with China’s President Xi Jinping may not yield a breakthrough in trade talks between the world’s two biggest economies.
In an interview with The Wall Street Journal, Trump said it was “highly unlikely” that he’ll hold off on taking the current level of tariffs applied on China-made imports into the United States to 25% on Jan. 1. He also said, baring a deal on the sidelines of the G-20 summit in Buenos Aires this weekend, that he’s ready to apply a further round of levies on $267 billion worth of imports, including iPhones and laptops, starting next year.
“The only deal would be China has to open up their country to competition from the United States,” Trump said in the interview. “As far as other countries are concerned, that’s up to them.”
Contracts tied to the Dow Jones Industrial Average fell 52 points, futures for the S&P 500 fell 7.25 points, and Nasdaq futures declined 34 points. Stocks surged on Monday, Nov. 26, with Wall Street getting a lift from record shopping on Black Friday and Cyber Monday and a rebound in oil prices.
The economic calendar in the U.S. Tuesday includes the S&P Corelogic Case-Shiller Home Price Index for September at 9 a.m. ET, the FHFA House Price Index for September at 9 a.m., and Consumer Confidence for November at 10 a.m.
Earnings reports are expected Tuesday from Salesforce.com Inc. (CRM – Get Report) and Cracker Barrel Old Country Store Inc. (CBRL – Get Report) .
Hibbett Sports Inc. (HIBB – Get Report) posted third-quarter adjusted earnings of 14 cents a share, 2 cents below estimates, and cut its adjusted earnings outlook for fiscal 2019
Salesforce is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells CRM? Learn more now.
2. — Apple Slides as Trump Hints at iPhone Tariffs
Apple Inc. (AAPL – Get Report) , the maker of the iPhone, fell 1.8% in premarket trading after Donald Trump suggested in his interview with the Journal that American consumers could “easily” handle an extra 10% tariff on imported iPhones and MacBooks if he were to increase levies on China-made goods next year.
“Maybe. Maybe. Depends on what the rate is,” Trump said in reference to levies on mobile phones and laptops. “I mean, I can make it 10% and people could stand that very easily.”
Some of Trump’s aides had suggested the Apple products might be exempted from additional tariffs. The administration has been worried about a consumer reaction should such items be subject to levies, the Journal noted.
Apple is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.
3. — United Technologies to Split Into 3 Companies
United Technologies Corp. (UTX – Get Report) rose 1.7% in premarket trading after the industrial conglomerate said it would break into three separate companies by 2020.
“Our decision to separate United Technologies is a pivotal moment in our history and will best position each independent company to drive sustained growth, lead its industry in innovation and customer focus, and maximize value creation,” said United Technologies CEO Gregory Hayes.
The three companies will be United Technologies, which will house its aerospace and defense industry supplier businesses; Otis, which makes elevators, escalators and moving walkways; and the Carrier air conditioning and building systems business.
Read more: https://www.thestreet.com/markets/5-things-you-must-know-before-the-market-opens-tuesday-14790417