Here are five things you must know for Thursday, Sept. 5:
1. -- Stock Futures Jump as U.S. and China Officials Agree to Meet in October
U.S. stock futures rose Thursday after officials from Washington and Beijing said they would resume trade talks in October.
China's Commerce Ministry said the two sides will hold high-level negotiations in Washington early next month, while the U.S. side confirmed a sit-down "in the coming weeks." Preliminary talks are expected to be in mid-September, the Commerce Ministry said following a phone call Wednesday with China's Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin.
Contracts tied to the Dow Jones Industrial Average rose 256 points, futures for the S&P 500 were up 26.25 points, and Nasdaq futures jumped 78 points.
Little progress on a trade agreement between the U.S. and China has been made since Donald Trump and Chinese President Xi Jinping agreed in June to resume negotiations about trade and technology.
"The lift in risk sentiment appears mitigated by the concern that the latest positive developments surrounding the U.S.-China trade impasse may prove fleeting and do not yet fully nullify the downside risks to the global economy," said FXTM market analyst Han Tan. "In order for risk sentiment to push significantly higher, markets will need to be shown material signs that U.S. and China are indeed drawing closer to a meaningful and lasting trade deal."
"Existing tariffs need to be dismantled in order to alleviate pressures on the global economy," he added. "Until then, potential gains for risk assets are expected to remain capped while safe-haven assets are likely to hang on to most of its recent gains."
U.S. stocks ended higher Wednesday after the withdrawal of an extradition bill in Hong Kong and easing of Brexit tensions in Britain helped put investors in a buying mood.
The Dow rose 237 points, or 0.91%, to 26,355, the S&P 500 climbed 1.08%, and the Nasdaq advanced 1.3%.
2. -- ADP Report and Lululemon Earnings Are Thursday's Calendar Highlights
The economic calendar in the U.S. Thursday includes the ADP National Employment Report for August at 8:15 a.m. ET, weekly Jobless Claims at 8:30 a.m., Productivity and Costs for the second quarter at 8:30 a.m., the PMI Services Index for August at 9:45 a.m., Factory Orders for July at 10 a.m., the ISM Non-Manufacturing Index for August at 10 a.m., and Oil Inventories for the week ended Aug. 30 at 10:30 a.m.
Earnings reports are expected Thursday from Lululemon Athletica (LULU) - Get Report , Ciena (CIEN) - Get Report , DocuSign (DOCU) - Get Report , Signet Jewelers (SIG) - Get Report , Meredith (MDP) - Get Report , Crowdstrike Holdings (CRWD) - Get Report , Zoom Video Communications (ZM) - Get Report , Hovnanian Enterprises (HOV) - Get Report , Lands' End (LE) - Get Report and PagerDuty (PD) - Get Report .
3. -- Slack Sinks After Indicating Growth Will Slow
Slack Technologies (WORK) - Get Report tumbled sharply in premarket trading Thursday after the workplace messaging company posted a narrower-than-expected loss in the second quarter and revenue that topped analysts' estimates but indicated near-term growth would slow.
Slack posted an adjusted quarterly loss of 14 cents a share vs. Wall Street's call for a loss of 19 cents. Revenue of $145 million beat estimates of $141.3 million.
It was Slack's first report since it went public in June.
"This is an entirely new category of software enabling a once-in-a-generation shift in the way people work together," said CEO Stewart Butterfield. "Customers are choosing Slack because we offer a great user experience, a rich application platform and ecosystem, and a growing network for intercompany collaboration via shared channels."
For its fiscal third quarter, Slack said it expects an adjusted loss of 8 cents to 9 cents a share and revenue to rise 46% to 48% from a year earlier to $154 million to $156 million. Analysts forecast a third-quarter loss of 7 cents a share on revenue of $153.2 million
Slack said it expects a loss for the 2020 fiscal year of between 40 cents and 42 cents a share on an adjusted basis. Revenue was forecast at between $603 million and $610 million, higher than previous expectations of $590 million to $600 million.
The stock was down 13.42% in premarket trading to $26.90.
4. -- Palo Alto Networks Posts Earnings Beat, Acquires Zingbox
Palo Alto Networks (PANW) - Get Report rose more than 8% in premarket trading after the cybersecurity company posted adjusted earnings of $1.47 a share, 5 cents better than analysts' estimates, and said it can achieve a compounded annual growth rate of 20% by 2022 for both billings and revenue from its cloud-based security products.
Revenue was $805.8 million, up from $658.5 million a year earlier and ahead of forecasts of $803 million. Billings in Palo Alto's fourth quarter rose rose 22% to $1.1 billion. Analysts had expected billings of $995 million.
Palo Alto Networks reported a GAAP loss of 22 cents a share vs. earnings of 7 cents a year earlier.
"We had a strong fourth quarter, surpassing a billion dollars in billings within the quarter for the first time, and achieving approximately 180% year-over-year growth in our newer Prisma and Cortex offerings," said CEO Nikesh Arora. "This year we acquired and released important new technologies and built a robust go-to-market framework for driving their success in the market. It's gratifying to see all the team's hard work translate into strong market results."
Palo Alto Networks also announced it was acquiring Zingbox, an internet of things security company, for $75 million in cash.
"While guidance underwhelmed (and that's to put it lightly), the dilution is for cause, the quarter and the huge billings beat backed up our claim about demand, and the stock's favorable reaction to management's impressive long-term target supports our broader thesis in this pure-play cybersecurity company," wrote Jim Cramer and theAction Alerts PLUS team, which holds Palo Alto Networks in its portfolio.
Palo Alto shares gained 8.48% to $217.50 in premarket trading.
5. -- Up to 15% of Goldman Sachs' Partners May Leave This Year - Report
The departures are likely to be announced in coming weeks. They would add to a spike in departures already this year among Goldman's partners, whose title has inspired envy across Wall Street for decades but lost some of its luster in recent years, the Journal noted.
Elisha Wiesel, Goldman's chief technology executive, and Steven Strongin, who runs the firm's research operation, are among those who are discussing stepping down, the Journal reported, citing people familiar with the matter.
A senior partner in stock trading, Jeff Nedelman, quit on Wednesday, other people familiar with the matter told the Journal. Martin Chavez, who was co-head of Goldman's trading division and, before that, its chief financial officer, announced his retirement on Tuesday.
Up to 15% of Goldman's partners may leave this year, far higher than typical turnover, according to the Journal.
CEO David Solomon is in some cases deliberately culling a partnership he sees as bloated, according to people familiar with the matter.