Here are five things you must know for Tuesday, Feb. 12:
1. -- Stocks Rise as Tentative Deal Reached to Avoid Government Shutdown
U.S. stock futures were higher on Tuesday, Feb. 12, and global stocks extended gains after lawmakers in Washington reached a tentative deal that would avoid another government shutdown later this week.
Investors also cheered positive signals from trade talks between Washington and Beijing.
Republican Sen. Richard Shelby of Alabama said a tentative deal had been reached with Democratic lawmakers to fund the U.S. government through the current financial year, which ends in September. He noted, however, that the deal didn't include the $5.7 billion for border wall funding demanded by Donald Trump.
Trump made a passing reference to the deal Monday night during a rally in El Paso, Texas, but appeared to shrug off the lack of funding for his signature 2016 campaign promise, telling the supportive crowd "we'll build the wall anyway."
He also said he didn't want China to have a "hard time," referring to ongoing trade talks between the U.S. and China. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer are expected to arrive in Beijing Thursday for higher-level discussions as negotiators race to meet the March 2 deadline when tariffs on $200 billion worth of China-made goods could increase to 25% from 10%.
Contracts tied to the Dow Jones Industrial Average rose 210 points, futures for the S&P 500 gained 19.50 points, and Nasdaq futures were up 60 points. The Dow closed lower Monday for a fourth consecutive session.
The economic calendar in the U.S. Tuesday includes the Job Openings and Labor Turnover Survey for December at 10 a.m. ET
2. -- Activision Blizzard and Under Armour Report Earnings
Under Armour Inc. (UAA - Get Report) earned 9 cents a share in the fourth quarter on an adjusted basis on revenue of $1.39 billion. Analysts were expecting earnings of 4 cents a share on revenue of $1.38 billion.
The company also reaffirmed that it expects earnings next fiscal year of 31 cents to 33 cents a share.
Earnings reports are also expected Tuesday from Activision Blizzard Inc. (ATVI - Get Report) , Twilio Inc. (TWLO - Get Report) , Shopify Inc. (SHOP - Get Report) and Groupon Inc. (GRPN - Get Report) .
- What Jim Cramer Is Watching When Activision Blizzard Reports Earnings
- Twilio's Slowing Price Momentum Could Foreshadow a Correction
3. -- Aurora Cannabis Sales Surge
Aurora Cannabis Inc. (ACB - Get Report) , the Canadian cannabis producer, posted a fiscal second-quarter loss of C$237.8 million on revenue of C$54.2 million, compared with year-earlier profit of C$7.7 million on revenue of C$11.7 million.
Two analysts surveyed by FactSet had expected the company to post revenue of C$51.8 million.
Shares of Aurora Cannabis fell 4% in premarket trading Tuesday.
The company attributed the revenue surge to its launch in the Canadian consumer market, where it reported sales of C$21.6 million, and international medical markets.
Aurora Cannabis said it sold 6,999 kg of cannabis in the quarter. The company said it accounted for 20% of consumer sales in Canada.
Aurora Cannabis projected it will reach sustained positive EBITDA beginning in its fiscal fourth quarter.
Aurora is one of three Canadian Cannabis companies reporting earnings this week. Tilray Inc. (TLRY - Get Report) is scheduled to report fourth-quarter results on Tuesday, while Canopy Growth Corp. (CGC - Get Report) will issue third-quarter results on Thursday.
4. -- Nissan Cuts Outlook, Takes Charge Related to Ghosn
Nissan Motor Co. (NSANY) lowered its full-year profit outlook, citing consistently challenging market conditions, and said it booked an $84 million charge linked to the under-reported salary of ousted Chairman Carlos Ghosn.
Japan's second-largest carmaker cut its full-year profit forecast by around 16.6% to 450 billion yen, even as it lowered its projection for the Japanese currency to 110.6 against the U.S. dollar. The cut followed a weaker-than-expected profit of 103.3 billion yen for the three months ended in December.
Nissan also lowered its full-year North American sales forecasts by around 5.6% to 1.916 million vehicles, a modestly larger reduction than the 5.4% cut it made to global sales, which it now sees at 5.925 million.
Ghosn, who was arrested in Japan in November 2018, has remained in custody since then on changes of under-reporting his salary for around eight years and breaching rules on pension transfers. Ghosn has said the accusations were part of a plot by Nissan executives who opposed his plans to deepen ties with French carmaker Renault SA (RNLSY) .
5. -- Amazon Buys 'Mesh' Wi-Fi Device Maker Eero
"We are incredibly impressed with the Eero team and how quickly they invented a Wi-Fi solution that makes connected devices just work," said Dave Limp, vice president of Amazon Devices and Services. "We have a shared vision that the smart home experience can get even easier, and we're committed to continue innovating on behalf of customers."
Eero's devices that spread Wi-Fi throughout a home or office sell for about $200 and up.
Terms of the deal weren't disclosed but Eero was valued at $251 million in a 2016 private financing round, according to an estimate by Sand Hill Econometrics, The Wall Street Journal reported. The San Francisco startup raised almost $100 million in venture capital from investors including Index Ventures, Initialized Capital and Menlo Ventures.