Stock futures trade lower on global growth, tariff concerns

Mounting headwinds to stocks in 2019?

Kadina Group President Gary B. Smith and Diversified Private Wealth Advisors’ Dominick Tavella on the outlook for stocks.

Equity futures pointed to a lower open on Thursday as Morgan Stanley fell short on fourth-quarter profit and revenue.

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Concern over China's economic outlook and possible U.S. tariffs on European cars shook global markets.

Dow Jones futures were lower by 0.4 percent. The S&P 500 slipped 0.4 percent and the Nasdaq Composite was off 0.4 percent.

Morgan Stanley reported fourth-quarter earnings per share of $0.80 on revenue of $8.5 billion on Thursday. Analysts expected profit per share of $0.89 on revenue of $9.24 billion.

On an adjusted basis due to a $0.07 tax benefit, EPS came in at $0.73.


Shares turned lower following the release of the results.

Ticker Security Last Change %Chg
MS MORGAN STANLEY 44.49 +1.61 +3.75%
JPM JP MORGAN CHASE & CO. 102.50 +0.82 +0.81%
GS GOLDMAN SACHS GROUP INC. 197.08 +17.17 +9.54%
C CITIGROUP INC. 62.19 +0.81 +1.32%

Europe's carmakers fell as much as 1.5 percent after U.S. Senate Finance Committee Chairman Chuck Grassley said he thought President Trump was "inclined" to impose tariffs on European cars to win better terms on agriculture.

London’s FTSE fell 0.7 percent, Germany’s DAX was down 0.4 percent and France’s CAC was off 0.4 percent.

In Asian markets on Thursday, China’s Shanghai Composite closed down 0.4 percent as China's economy looked poised to report its worst growth figures in a decade.

Hong Kong’s Hang Seng ended the day 0.5 percent lower and Japan’s Nikkei index closed down 0.2 percent.

Ticker Security Last Change %Chg
I:DJI DOW JONES AVERAGES 24207.16 +141.57 +0.59%
SP500 S&P 500 2616.1 +5.80 +0.22%
I:COMP NASDAQ COMPOSITE INDEX 7034.6932 +10.86 +0.15%

U.S. stocks closed higher Wednesday following better-than-expected profit reports from Goldman Sachs and Bank of America.

The two big banks helped lift all three major stock averages into positive territory and offset worries stemming from the overwhelming defeat of British Prime Minister Theresa May's Brexit plan.

Goldman Sachs revealed fourth-quarter profit of $2.54 billion, or $6.04 per share, on revenue of $8.08 billion. Analysts had expected profit per share of $4.45 on revenue of $7.63 billion.

Bank of America reported fourth-quarter profit rising to $7.28 billion, or 70 cents per share, well above analyst estimates of 63 cents per share. Revenue climbed to $22.74 billion, higher than Street estimates of $22.39 billion.


Shares of First Data soared more than 20 percent after Fiserv announced it was buying the company in an all-stock deal worth $22 billion

Sears Chairman Eddie Lampert won in a bankruptcy auction for the struggling department store chain with an improved takeover bid of roughly $5.2 billion.

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