Morgan Stanley, Netflix earnings, China, Brexit in focus
Such concerns appeared to weigh on investor sentiment Thursday. Recent data has shown signs of weakness in China’s economy, a sensitive issue as Beijing tries to resolve its trade dispute with the Trump administration over the course of a 90-day tariffs truce. The two countries have targeted each other’s economies with new duties on billions of dollars’ worth of imports.
Also weighing on investor sentiment is continued uncertainty surrounding Brexit after British Prime Minister Theresa May’s divorce deal was voted down by Parliament earlier this week. The government survived a no-confidence vote on Wednesday, albeit by a slim margin of 19 votes.
May has said she will now discuss options with lawmakers from different parties, although she has pointedly not been in direct contact with opposition leader Jeremy Corbyn.
In terms of earnings, major corporates including Morgan Stanley, American Express and Netflix will report results today. Morgan Stanley will be the latest banking titan to release its financials, with Citi, J.P. Morgan, Wells Fargo, Goldman Sachs and Bank of America all having posted their results this week. Netflix’s earnings will arrive after the streaming giant announced it would raise monthly subscription prices by 13 to 18 percent, a move that was cheered by Wall Street earlier this week.
On the data front, weekly jobless claims and Philadelphia Fed manufacturing figures are due at 8:30 a.m. ET.