Here are five things you must know for Friday, May 17:
1. -- Stock Futures Fall After Trade Tensions Heat Up
U.S. stock futures declined on Friday and global stocks were mostly in retreat as investors grow increasingly concerned about the potential for a trade deal and its near-term impact on the world economy.
Bank of Japan Governor Haruhiko Kuroda pledged Friday to keep interest rates near zero until at least the middle of next year, noting a weakening global economic outlook could make Japanese manufacturers more cautious about spending.
Kuroda's remarks echoed deepening concerns for the fate of the global economy amid the escalating trade tensions between the U.S. and China after Donald Trump placed China's Huawei Technologies on a blacklist that prevents it from dealing with U.S. companies without prior approval.
China's state-run media used print, television and social media platforms to excoriate the U.S. move to censure Huawei and pressure the government to adapt its laws to facilitate freer trade, with a front-page splash in the People's Daily Newspaper invoking military and nationalist themes as it described China's position as "as firm as a boulder."
Contracts tied to the Dow Jones Industrial Average fell 97 points, futures for the S&P 500 declined 12.60 points, and Nasdaq futures tumbled 40.50 points.
The economic calendar in the U.S. Friday includes Consumer Sentiment for May at 10 a.m. ET.
Deere (DE) - Get Deere & Company Report posted weaker-than-expected fiscal second-quarter earnings and lowered its full-year profit outlook as "softening" agricultural market conditions and reduced export market access clouded its near-term forecasts.
2. -- Nvidia Rises but Gains Are Capped After Chipmaker Pulls Full-Year Guidance
Nvidia (NVDA) - Get NVIDIA Corporation Report rose in premarket trading Friday following earnings that smashed analysts' expectations but the gains were limited after the graphics chipmaker said it was no longer providing full-year guidance.
Adjusted earnings in Nvidia's first quarter were 88 cents a share, beating forecasts by 30 cents. Revenue fell to $2.22 billion from $3.21 billion a year ago and came in roughly in-line with forecasts of $2.2 billion. Gaming revenue of $1.06 billion beat forecasts, while data center revenue declined 10% from a year earlier to $664 million.
Nvidia said it expects second-quarter revenue of $2.5 billion to $2.6 billion - analysts were looking for revenue of $2.54 billion.
Shares jumped more the 6% following Nvidia's report but pulled back after Chief Financial Officer Colette Kress made cautious remarks on the earnings conference call about Nvidia's near-term outlook. In premarket trading Friday, the stock rose 1.5% to $162.63.
"We are still experiencing I think the uncertainty as a result of the pause with the overall hyperscale data centers. And we do believe that's going to extend into Q2," Kress said. "The core dynamics of our business at every level is exactly what we expected. Just that said though, we're going to return to just quarterly guidance at this time."
"So, at this time, we don't plan on giving a full year overall guidance," she added later in the call.
- Nvidia Beats Estimates and Pulls Full-Year Guidance: 6 Key Takeaways
- Nvidia Gains on Q1 Profit Beat but Full-Year Guidance Dropped Amid Sector Woes
- Nvidia Is Building the Future. How Did It Get There?
"All in, while the headline numbers beat expectations, the segment results were somewhat of a mixed bag," said Jim Cramer and the Action Alerts PLUS team, which holds Nvidia in its portfolio." That said, we believe this was more than priced into shares given the known pause in data center spending coming into the release and view the rebound in gaming as a crucial factor that serves to address concerns of a longer-than-expected gaming GPU inventory glut - again, resulting from crypto mining demand that disappeared along with the prior decline in crypto prices."
3. -- Pinterest Slumps After Posting Wider-Than-Expected Loss
The adjusted loss in the quarter narrowed to 32 cents a share from 38 cents a year earlier but was wider than forecasts that called for a loss of 11 cents.
Revenue in the first quarter rose 54% to $202 million, ahead of analysts' estimates of $200.7 million.
Pinterest said global monthly active users rose 22% from a year earlier to 291 million
The earnings release Thursday was Pinterest's first since it debuted as a public company in April. Pinterest has performed well since its initial public offering, which was priced at $19 a share
"The IPO was a significant milestone, but our focus at Pinterest hasn't changed. We want to help people discover inspiring ideas for every aspect of their lives, from fashion and home decor to travel and fitness," said Ben Silbermann, Pinterest's co-founder, president and CEO. "Our success can be seen in our Q1 results, and we're excited to continue to grow our reach and impact in the years to come."
4. -- Luckin Coffee Is Valued at $4.2 Billion in IPO
Luckin Coffee's initial public offering was priced at the higher end of its target range, setting up a debut Friday on the Nasdaq that will value the China-based rival to Starbucks (SBUX) - Get Starbucks Corporation Report at more than $4.2 billion.
Luckin sold 33 million American depositary shares at $17 a share, topping the upper end of the $15 to $17 range the company's underwriters had targeted in the weeks prior to the offering. The IPO will raise around $571 million for Luckin.
Luckin has about 2,300 coffee outlets in China, with plans for another 2,500 by the end of the year, as it goes head-to-head with Starbucks in the world's biggest coffee market. Luckin, in fact, estimated consumption will rise to 15.5 billion cups by 2023, nearly 80% higher than last year's record levels.
Starbucks has said it plans to expand its store footprint in China by 6,000 stores over the next four years, nearly double its current total.
5. -- Amazon Leads $575 Million Investment in U.K. Meal Delivery Company Deliveroo
Amazon.com (AMZN) - Get Amazon.com Inc. Report led a $575 million investment in British meal delivery company Deliveroo, making Amazon Deliveroo's largest investor in the latest funding round and expanding the online retail giant's reach into food retailing.
"Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organization," said Will Shu, founder and CEO of Deliveroo.
The size of Amazon's investment in Deliveroo or its stake in the company wasn't disclosed.
Deliveroo said also that existing backers including T. Rowe Price, Fidelity and Greenoaks took part in the latest funding round.
Deliveroo, based in London, was founded in 2013 and operates in 14 countries.