Skip to main content

Boeing, Shell, Tesla, Biden & Xi Summit and Markets - 5 Things You Must Know

Stocks move higher heading into a retail-focused trading week; Boeing looks for 737 MAX return in China; Shell planning Dutch exit, dual structure changes; Musk taunts Sanders on share sales after offloading $7 billion in stock and Biden and Xi will hold a high-stakes virtual summit later this evening.

Here are five things you must know for Monday, November 15:

1. -- Stocks Futures Higher Ahead of Retail-Focused Week

U.S. equity futures moved higher Monday, while Treasury bond yields eased and the dollar gave back some of last week's gains, as investors pare bets on accelerated tightening from the Federal Reserve heading into the final throes of the third quarter earnings season.

Retail will likely capture the market's focus this week with third quarter updates from Walmart  (WMT) - Get Walmart Inc. Report, Home Depot  (HD) - Get Home Depot, Inc. (HD) Report, Target  (TGT) - Get Target Corporation Report and Macy's  (M) - Get Macy's Inc Report this week, as well as what could be a key reading of October U.S. retail sales on Tuesday.

The data will cap a solid third quarter earnings season that is on pace to deliver a 41.5% increase in collective S&P 500 profits, taking them to just under $451 billion.

That's allowed investors to shrug-off the implications of last week's hotter-than-expected October inflation reading of 6.2%, the fastest since 1990, and the chances of a near-term acceleration in the Fed's tapering schedule. 

Futures contracts tied to the Dow Jones Industrial Average are indicating a 130 point opening gain while those linked to the S&P 500 are priced for a 12.5 point move to the upside.

Futures tied to the tech-focused Nasdaq Composite are indicating a 35 point advance as benchmark 10-year Treasury note yields edge lower, to 1.544%, in overnight trading.

2. -- Boeing Looks For China Decision on 737 MAX

Boeing BA shares jumped higher in pre-market trading amid reports that after authorities in China are edging closer to lifting their two-and-a-half year ban on the 737 MAX. 

Reuters reported the China's Civil Aviation Administration is happy with changes made to the 737 MAX's aviation control system software and display, following deadly crashes in Indonesia and Ethiopia, and has invited domestic carriers to comment before the end of the month.

Boeing China President Sherry Carbary said in September she hoped the CAAC, which grounded the jet in 2019,, would reverse that decision by the end of the year.

Boeing shares were marked 2.3% higher in pre-market trading to indicate an opening bell price of $226.05 each.

3. -- Shell Exiting The Netherlands, Dumping Dual-Class Structure

Royal Dutch Shell  (RDS.A)  shares jumped higher in pre-market trading after Europe's biggest oil company said it would move its corporate headquarters, as well as its main share listing, to London. 

TheStreet Recommends

The Anglo-Dutch firm will also drop "Royal" from its name and abandon its dual corporate structure as it departs the Netherlands after more than 110 years amid a long-running dispute over taxes and climate targets. It's also hoping to assuage a call from activist investor Third Point to break the oil giant up into smaller, more efficient companies.

Shareholders will vote on the plans on December 10.

"The simplification is designed to strengthen Shell's competitiveness and accelerate both shareholder distributions and the delivery of its strategy to become a net-zero emissions business," Shell said in a statement.

Shell's U.S.-listed shares were marked 1.89% higher in pre-market trading to indicate an opening bell price of $45.00 each.

4. -- Musk Taunts Sanders On Tesla Share Sales

Tesla  (TSLA) - Get Tesla Inc Report shares slipped lower in pre-market trading amid yet another suggestion that founder and CEO Elon Musk is preparing to sell stock in the clean energy car company.

Musk, who sold nearly $7 billion worth of shares last week following Tesla's rise past the $1 trillion market cap threshold, sparred with Vermont Senator Bernie Sanders on Twitter over the weekend, saying: "Want me to sell more stock, Bernie? Just say the word" after Sanders demanded "the extremely wealthy pay their fair share" of taxes."

Musk has sold around 6.36 million shares -- just over a third of the 17 million he would need to offload to make good on a Twitter promise he made to sell 10% of his stake. 

Tesla shares were marked 1.8% lower in pre-market trading to indicate an opening bell price of $1,015.00 each.

5. --  Biden and Xi To Hold Virtual Summit Later Monday

President Joe Biden and China President Xi Jinping will hold a virtual meeting later today aimed at reducing conflict between the two world superpowers.

Biden, who urged Xi to attend the meeting following the pair's first phone call earlier this fall, is expected to tell the Chinese leader to "play by the rules of the road", according to a U.S. official briefing of reporters late Sunday. 

Beyond the issues of trade, climate and global competition, however, lie more pointed areas of disagreement over China's hostility towards Taiwan and its expanding nuclear weapons arsenal.

Officials have downplayed the notion of 'deliverables' from the talks, which are expected to last for several hours, but made no comment when asked if the U.S. would send delegates to the Winter Olympics in Beijing in February - an event that is expected to form the cornerstone of Xi's efforts to secure an unprecedented third term is Communist Party leader.