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Boeing, Netflix, Amazon, FedEx and Wall Street Records - 5 Things You Must Know Tuesday

U.S. stock futures trade lower Tuesday, a day after Wall Street's fresh record highs; Boeing will halt production of its troubled 737 MAX model in January; FedEx reports earnings; Netflix discloses overseas membership numbers.

1. -- Stock Futures Peel Back From Record Highs

U.S. stock futures traded lower Tuesday as investors peeled back from Wall Street's fresh record highs.

Contracts linked to the Dow Jones Industrial Average fell 59 points, futures for the S&P 500 were down 4.15 points and Nasdaq futures slipped 3.50 points.

Stocks closed at record highs Monday as Wall Street gave cautious approval to the phase-one trade agreement between the U.S. and China.

The Dow rose 100.51 points, or 0.36%, to finish at 28,235.89, the S&P 500 gained 0.71% to 3,191.45 and the tech-heavy Nasdaq gained 0.91% to 8,814.23. 

Optimism about the trade deal could give stocks another jolt Tuesday after White House economic adviser Larry Kudlow insisted that the trade pact with China was "absolutely done" and would see a doubling of U.S. exports to Beijing in the coming years.

However, sentiment could be dented by a surprise move by British Prime Minister Boris Johnson to impose a tight deadline on trade talks with the European Union and the ongoing difficulties Boeing  (BA)  faces with its troubled 737 MAX jet.

2. -- FedEx and Navistar Lead Tuesday's Earnings Calendar

The earnings calendar Tuesday includes FedEx  (FDX) , Jabil  (JBL) , Cintas  (CTAS) , Navistar International  (NAV)  and Pier 1 Imports  (PIR) .

The economic calendar in the U.S. Tuesday includes Housing Starts for November at 8:30 a.m. ET, Industrial Production for November at 9:15 a.m. and the Job Openings and Labor Turnover Survey for October at 10 a.m. 

3. -- Boeing Tumbles After Saying It Will Halt Production of 737 MAX

Boeing  (BA)  will halt production of its troubled 737 MAX model in January as the plane’s return to flight faces further delays and inventories build.

The aircraft maker said it has about 400 737 MAX aircraft in storage.

The MAX has been grounded since March after deadly crashes in Indonesia and Ethiopia killed a total of 346 people.

"The FAA and global regulatory authorities determine the timeline for certification and return to service. We remain fully committed to supporting this process. It is our duty to ensure that every requirement is fulfilled, and every question from our regulators answered," the company said in a statement.

Boeing reached its decision late Monday following a two-day board meeting in Chicago that came after the Federal Aviation Administration's chief administrator, Steve Dickson, cautioned that multiple milestones needed to be met before the MAX could be granted clearance. 

Boeing had continued making the plane while it worked to fix software implicated in the crashes. However, attempts to win regulatory approval to return it to flight have been delayed repeatedly.

Boeing said it doesn't currently anticipate furloughs and "affected employees will continue 737-related work, or be temporarily assigned to other teams in Puget Sound."

The stock was down 1.75% in premarket trading to $321.29.

4. -- Netflix Is Growing Overseas Where It Has 90 Million Subscribers

Netflix's  (NFLX)  growth overseas is accelerating and in a regulatory filing the streaming giant said it has 90 more than million customers abroad.

Those subscribers, which include more than 47 million in Europe, the Middle East
and Africa, are more than the 60 million customers Netflix has in the United States, where growth is slowing.

Netflix issued the filing ahead of its fourth-quarter earnings report in January, when the company will release membership numbers by region for the first time.

Netflix's growth in Europe, the Middle East and Africa jumped 132% from the end of the third quarter of 2017 to the end of the third quarter of 2019, according to Reuters. Membership revenue increased 105%.

Netflix also disclosed it has more than 29 million customers in Latin America.

5. -- Amazon Blocks Third-Party Sellers From Using FedEx for Prime Shipments  (AMZN)  has prohibited third-party sellers from using FedEx's  (FDX)  ground delivery network for Prime shipments through the holidays.

Amazon informed those sellers of the change in a message Sunday night, The Wall Street Journal reported. 

The change applies to FedEx's Home and Ground delivery services, and came as a result of a slip in FedEx's delivery performance, according to Amazon. Third-party sellers may still opt to use FedEx's faster but more costly delivery services.

Amazon and FedEx ended a contract earlier this year to manage first-party deliveries in the U.S., but third-party sellers may still opt to use FedEx services.

"The overall impact to our business is minuscule,” a FedEx spokeswoman told the Journal.

Amazon and other retailers are facing a particularly challenging holiday delivery schedule this year, given a shorter-than-average time frame between Thanksgiving and Christmas. Amazon, Walmart  (WMT)  and others have also introduced free next-day shipping for certain orders this year.

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