Here are five things you must know for Tuesday, Aug. 20:
1. -- U.S. Stock Futures Turn Lower
U.S. stock futures turned lower on Tuesday and global shares were mixed a day after the decision from the United States to grant China's Huawei Technologies a three-month extension to buy parts from U.S. companies was looked upon as a sign of progress in the trade war between the world's two largest economies.
Contracts tied to the Dow Jones Industrial Average fell 25 points, futures for the S&P 500 declined 2.20 points, and Nasdaq futures were down 3 points.
"While it is not unexpected, the extension for the easing of Huawei sanctions had added to the relief for markets at the start of the week," said Jingyi Pan, a market strategist for IG in Singapore.
Stocks rose for a third straight session Monday after Donald Trump said the U.S. and China were "talking," and as Trump and other White House officials played down recession fears.
"We're doing tremendously well. Our consumers are rich," Trump said. "I gave a tremendous tax cut and they're loaded up with money."
The economic calendar in the U.S. on Tuesday is quiet.
2. -- Home Depot and Kohl's Report Earnings
Home Depot (HD) - Get Report earned $3.17 a share in the second quarter, beating analysts' estimates of $3.09 a share. Revenue of $30.84 billion just missed forecasts. The home improvement retailer said it expects fiscal-year sales to rise by about 2.3% and comparable-store sales to rise about 4%.
The stock was up 1.29% in premarket trading at $210.63 a share.
Kohl's (KSS) - Get Report second-quarter earnings lower than a year ago but still ahead of analysts' forecasts as the company continued to focus on cutting costs while changing its product lineup to entice customers to walk through its doors. The stock rose 5.56% to $50.88.
3. -- State Attorneys General May Probe Big Tech - Report
State attorneys general are discussing launching their own antitrust probe of big technology firms such as Facebook (FB) - Get Report and Alphabet's (GOOGL) - Get Report Google unit, The Wall Street Journal reported, citing people familiar with the situation.
The formal effort could get underway as early as September, according to the Journal. It's likely to focus on whether a handful of dominant technology platforms use their marketplace powers to stifle competition, the Journal said.
While the specific number of states that might join the investigation couldn't be learned, one person familiar with the effort told the Journal that up to 20 or more may participate.
The Department of Justice earlier this summer launched its own review of antitrust issues surrounding tech companies. The Federal Trade Commission also is investigating Facebook.
Separately, FTC Chairman Joseph Simons told the Financial Times that breaking up Facebook would be difficult to do, especially if the company ties together its three major platforms: WhatsApp, Instagram and its traditional newsfeed.
4. -- Apple's Spending on Its Streaming Service Reportedly Soars Past $6 Billion
Apple's (AAPL) - Get Reportspending on content for its soon-to-launch streaming service has soared past $6 billion as the iPhone maker seeks to beat Walt Disney (DIS) - Get Report to the punch in launching its video offerings, the Financial Times reported.
In one case, Apple has spent hundreds of millions of dollars on "The Morning Show" featuring high-priced stars Jennifer Aniston, Reese Witherspoon and Steve Carell, according to the Financial Times.
The tech giant originally had budgeted $1 billion for programming on its service, the FT reported, citing people familiar with the matter. However, Apple has had to offer more generous terms and earlier payments to producers than Netflix (NFLX) - Get Report to gain deals in Hollywood, the report said.
Disney is slated to launch its Disney+ streaming service Nov. 12. Apple is expected to launch sometime in the next two months.
5. -- Baidu Surges as Strong Traffic Leads to an Earnings Beat
American depositary receipts of Baidu
jumped 8.49% to $113.07 in premarket trading Tuesday after the Chinese search giant's second-quarter earnings fell 62% but still topped analysts' estimates.
Baidu posted second-quarter profit of 2.41 billion yuan ($342 million) compared with a year earlier. Revenue of 26.33 billion yuan, up 1.4% from a year earlier, beat analysts' forecasts.
Adjusted earnings in the quarter were $1.47 per ADR, topping expectations of 88 cents.
The company attributed the earnings beat to improvements to its mobile platform that have led to stronger traffic and higher conversion.
"Our focus on strengthening Baidu's mobile ecosystem through knowledge-based content, BJH accounts, smart mini programs and managed pages on Baidu's platform is translating into better user experience, stronger traffic growth, and, we believe, ultimately higher conversion for our customers," said Robin Li, Baidu co-founder and CEO.
The company reported that in June its Baidu app daily average users grew 27% year over year to 188 million, its in-app search queries grew more than 20%, and its smart mini program monthly average users grew 49% sequentially to 270 million.
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