CNBC
Following comments by President Donald Trump that China called and wants to return to the negotiating table on trade, U.S. stock futures erased early sharp losses and indicated a strong Wall Street open. Markets have been buffeted about on varying trade headlines for weeks, with a Friday announcement of retaliation against China sending the Dow lower by more than 600 points. (CNBC)
* Mnuchin: If China agreed to a fair relationship, we'd sign that deal 'in a second' (CNBC)
Friday's losses erased what had been a weekly gain for stocks, and the Dow, S&P 500, and Nasdaq have now each posted 4 straight weekly losses. That's also made August all but certain to be a losing month for Wall Street, although the losses are not quite as sharp as they were in May the only other month in 2019 to see declines for the Dow, S&P 500, and Nasdaq. (CNBC)
On today's economic calendar, the government is out with July durable goods orders at 8:30 a.m. ET this morning. No major companies are expected to report earnings today. (CNBC)
IN THE NEWS TODAY
Trump said today that the U.S. is close to reaching a compromise over France's digital tax. The proposed agreement would see France repay tech companies the difference between the amount collected under its current digital tax model and the amount owed by firms under a new system. (CNBC)
U.S. electric vehicle maker Tesla (TSLA) will raise prices in China on Friday, earlier than planned, and is considering increasing prices again in December should Chinese tariffs on U.S.-made cars take effect, Reuters reported. It currently imports all the cars it sells in China and has had to adjust prices multiple times over the past year due to tariff changes.
Chinese artificial intelligence firm Megvii has filed for a public listing in Hong Kong. The company is backed by e-commerce giant Alibaba and state-owned enterprises such as Bank of China Group Investment, the bank's private equity arm. Megvii sells AI products from facial recognition technology to algorithms designed for traffic management. (CNBC)
Target (TGT) announced it's opening dozens of permanent Disney (DIS) stores within its own stores over the next year, as it invests in more unique ways to lure customers inside. This Oct. 4, ahead of the holiday season, 25 Disney stores will open at certain Target stores across the country, in cities including Philadelphia, Denver and Chicago. (CNBC)
STOCKS TO WATCH
Mallinckrodt (MNK) is under scrutiny for its role in the opioid crisis, according to a Wall Street Journal report. The paper notes that the bulk of the attention surrounding opioids has focused on OxyContin maker Purdue Pharma, but that other drug makers like Mallinckrodt are drawing more focus as more legal documents become public.
Raytheon (RTN) won a $534 million Army contract for infrared viewers used by military tanks to select targets.
3M (MMM) shares are not at bargain levels despite a 16% year-to-date drop in the shares, according to an article in Barron's. The paper said potential environmental liabilities threaten to erode 3M's valuation further.
Cree (CREE) was downgraded to "underweight" from "neutral" at Piper Jaffray, following the lighting products maker's last quarterly results and weaker-than-expected outlook. The firm also cut its price target for the stock to $38 per share from $57.
CONTRIBUTORS
Jessica Bursztynsky
@jbursz
Peter Schacknow
@peterschack
