Federal Reserve, Tariff Deadline, Toll, NortonLifeLock, Chewy - 5 Things You Must Know Tuesday

U.S. stock futures decline as investors key on the start of the Federal Reserve policy meeting and monitor developments in the slow-moving U.S.-China trade talks; Toll Brothers reports better-than-expected fiscal fourth-quarter earnings; NortonLifeLock reportedly attracts deal interest from McAfee.
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Here are five things you must know for Tuesday, Dec. 10:

1. -- Stock Futures Lower as Wall Street Keys on Fed, U.S.-China Trade

U.S. stock futures declined Tuesday as investors keyed on the start of the two-day Federal Reserve policy meeting and monitored developments in the slow-moving trade talks between Washington and Beijing.

With a Dec. 15 deadline for fresh tariffs on China-made goods looming, there was little desire for investors to reach for further risks ahead of the Fed's assessment on U.S. growth on Wednesday and make moves absent any significant movement in the current U.S.-China trade standstill.

The tariffs that go into effect Sunday would apply to a range of China-made consumer goods - including mobile phones and children's toys - worth nearly $160 billion.

"I don't think the president wants to implement these new tariffs, but there has got to be some movement on (China's) part to encourage him not to do that," U.S. Agriculture Secretary Sonny Perdue told reporters.

Contracts linked to the Dow Jones Industrial Average fell 106 points, S&P 500 futures declined 9.75 points and Nasdaq futures slumped 33 points.

Stocks on Monday closed lower, falling for the first time in four sessions.

The Dow declined 105 points, or 0.38%, to 27,909, the S&P 500 fell 0.32% and the Nasdaq was down 0.4%.

2. -- Federal Reserve's Two-Day Meeting Begins

The economic calendar in the U.S. Tuesday includes the first day of the two-day Federal Reserve meeting. The central bank is expected to leave interest rates steady following the conclusion of the meeting on Wednesday and indicate that rates will stay low for the foreseeable future. It has trimmed rates at the last three meetings.

The calendar also includes Productivity and Costs for the third quarter at 8:30 a.m. ET.

Earnings reports are expected Tuesday from Autozone (AZO) - Get Report, Dave & Buster's (PLAY) - Get Report, GameStop (GME) - Get Report, Ollie's Bargain Outlet Holdings (OLLI) - Get Report and Designer Brands (DBI) - Get Report.

3. -- Toll Brothers Surpasses Fourth-Quarter Estimates

Toll Brothers (TOL) - Get Report, the luxury homebuilder, reported stronger-than-expected fiscal fourth-quarter earnings and revenue.

The stock rose 1.4% in premarket trading to $42.

The company reported profit in the period of $1.41 a share, down from $2.08 in the year-earlier quarter. Revenue declined 3.1% to $2.38 billion from $2.46 billion.

Analysts had been calling for profit of $1.29 a share on revenue of $2.19 billion.

Buyer demand steadily improved through the year, Chairman and CEO Douglas Yearley Jr. said in a statement.

He called the economic environment "positive," noting that October housing starts were the strongest since July 2007 while the supply of homes on the market "remains constrained."

In the first six weeks of the fiscal 2020 first quarter, demand has been stronger than it was in fiscal 2019's fourth quarter, the CEO said.

For the first quarter, Toll Brothers expects to deliver 1,650 to 1,850 homes. Toll Brothers estimates the average price of those first-quarter deliveries at $800,000 to $820,000.

4. – NortonLifeLock Reportedly Attracts Interest From McAfee

NortonLifeLock (NLOK) - Get Report, which sells Norton antivirus software and LifeLock identity-theft-protection products, has attracted deal interest from a handful of companies including rival McAfee, people familiar with the matter told The Wall Street Journal.

Among the options being considered, according to the people, is a combination with the consumer business of McAfee, the antivirus-software company owned by Intel INTC and private-equity firms TPG and Thoma Bravo LLC.

McAfee and its owners join Permira and Advent International as potential suitors for NortonLifeLock. 

The Journal previously reported that those private-equity firms had made a bid for the business.

NortonLifeLock shares rose 3.35% to $26.5 in premarket trading.

5. -- Chewy Tumbles Despite Better-Than-Expected Results

Chewy (CHWY) - Get Report was tumbling in premarket trading Tuesday even after the pet-food-delivery company reported better-than-expected results in its fiscal third quarter.

The company reported an adjusted loss before interest, taxes, depreciation and amortization of $30.2 million, narrower than analysts' calls for a loss of $39.5 million.

Revenue in the period jumped 40% to $1.23 billion from a year earlier

Chewy said it expects revenue in its fourth quarter of $1.33 billion to $1.35 billion - analysts expects revenue of $1.32 billion.

The stock fell 4.05% in premarket trading to $23.20. 

Chewy went public June 14 at $22 a share. The so-called lock-up expiry on the stock arrives Wednesday, allowing some 83% of the outstanding shares to be freely traded, giving early investors a chance to cash out from the IPO that raised more than $1 billion.