Here are five things you must know for Tuesday, Aug. 18:
1. -- Stock Futures Rise as Home Depot and Walmart Smash Estimates
Contracts linked to the Dow Jones Industrial Average rose 29 points, S&P 500 futures were up 3 points and Nasdaq futures gained 31 points.
The S&P 500 rose Monday and finished at 3,381.99, a little more than 4 points away from its all-time closing high of 3,386 set on Feb. 19. The tech-heavy Nasdaq, led by stocks such as Nvidia (NVDA) - Get NVIDIA Corporation Report and Tesla (TSLA) - Get Tesla Inc Report, jumped 1% and set a closing high. The Dow slumped 86 points, or 0.31%, to close at 27,844.
Stocks keep powering higher though uncertainty over the prospects for a fresh coronavirus stimulus package from Congress have stalled and tensions between Washington and Beijing are heightened after the Trump administration announced new restrictions on China's Huawei Technologies.
“The markets are in ‘show me the money’ mode, perhaps erring on the side of caution, not holding their breath for an imminent deal in Congress,” said Stephen Innes of AxiCorp. “Sadly, this leaves the U.S. real economy waddling and many businesses and millions of consumers getting the short shrift.”
2. -- Tuesday's Calendar Highlights
Walmart earned an adjusted $1.56 a share in the second quarter, topping Wall Street forecasts of $1.25. Same-store sales in the U.S. rose 9.3% vs. expectations of up 5.6%.
The stock was rising 0.81% to $136.70 in premarket trading.
Home Depot earned $4.02 a share in the second quarter vs. estimates of $3.68, while same-store sales jumped 23.4%, well higher than forecasts of 12.2%.
The stock jumped 0.87% in premarket trading to $290.75.
Reports also will be issued Tuesday from Kohl's (KSS) - Get Kohl's Corporation Report, Agilent Technologies (A) - Get Agilent Technologies, Inc. Report, Advance Auto Parts (AAP) - Get Advance Auto Parts, Inc. Report, La-Z-Boy (LZB) - Get La-Z-Boy Incorporated Report and Toll Brothers (TOL) - Get Toll Brothers, Inc. Report also will be issuing reports.
The economic calendar in the U.S. Tuesday includes Housing Starts for July at 8:30 a.m. ET.
3. -- Oracle Is in Talks to Buy TikTok's U.S. Operations
Oracle (ORCL) - Get Oracle Corporation Report has held talks with TikTok's owner, ByteDance, about buying the U.S. operations of the viral video streaming app, according to a report in the Financial Times.
Enterprise software maker Oracle has held preliminary talks with China's ByteDance, and was seriously considering purchasing the app’s operations in the U.S., Canada, Australia and New Zealand, The FT reported, citing people briefed about the matter.
Oracle has been working with a group of U.S. investors that already own a stake in ByteDance, including General Atlantic and Sequoia Capital, the people added.
President Donald President Donald Trump ordered ByteDance on Friday to sell its U.S. assets within 90 days. Trump earlier had said the U.S. would ban TikTok on Sept. 15 if an American buyer doesn't snap it up by then.
Oracle was rising 2.85% in premarket trading to $55.53, while Microsoft was flat to $210.07.
4. -- Boeing Offers Workers a Second Round of Voluntary Buyouts
“While we have seen signs of recovery from the pandemic, our industry and our customers continue to face significant challenges,” Boeing said in a statement. “We have taken proactive steps to adjust to the market realities and position our company for the recovery. As we continue to assess our workforce and in response to employee feedback, we will be offering a second voluntary layoff (VLO) opportunity for employees to depart the company voluntarily with a pay and benefits package.”
The voluntary layoffs offer will made primarily to workers in Boeing's commercial airplanes unit, services division and corporate operation, CEO Dave Calhoun said in a message to employees that was seen by Bloomberg. More details will be made available to workers starting next week.
“This action will extend our overall workforce reductions beyond the initial 10% target and will allow more employees who want to depart the company to do so voluntarily with a pay and benefits package. Importantly, it also will help limit additional involuntary workforce actions,” the CEO said.
Boeing shares were up 0.78% to $173.36 in premarket trading.
5. -- Apple and Epic Games Escalate Their Fight
Apple (AAPL) - Get Apple Inc. Report has threatened to remove the developer account of Epic Games and cut off its access to iOS and Mac developer tools as the fight ramps up between the tech giant and the maker of popular game "Fortnite."
Apple's plans were disclosed in a court filing by Epic Games on Monday, according to a report from Bloomberg.
Epic Games asked a California federal court to block Apple’s removal of Fortnite from the App Store. Apple kicked out Fortnite from the App Store shortly after the game introduced new payment options.