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Stock Futures Mostly Higher on Trade Talks, Dow's Shake-Up in Focus

Pre-markets are mostly higher courtesy of strong market momentum and news on U.S. - China trade talks. Yesterday, the S&P 500 closed above 3,400 for the first time and the Nasdaq posted its 37th high at closing so far this year.

This morning, Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer had a telephonic discussion with Chinese vice premier Liu He. Both sides have expressed optimism about the continuation of the Phase 1 trade deal.

Meanwhile, the S&P  Dow Jones Indices announced that the Dow Jones Industrial Average — popularly known as the Dow 30 — will undergo a major shake-up which will be effective Aug 31, before the opening bell. Effectively, the index will exclude Pfizer Inc. PFE, Raytheon Technologies Corp. RTX and Exxon Mobil Corp. XOM. The newcomers will be inc. CRM, Amgen Inc. AMGN and Honeywell International Inc. HON.

The S&P Dow Jones said that the readjustment within the 30 stock index is needed after Apple Inc. AAPL decided a 4-for-1 stock split that will reduce the price-weighted index's exposure to the technology sector.

On the economic data front, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index advanced 4.3% year over year in June and remained flat with the previous month. The 10-City Composite increased 2.8% year over year while the 20-City Composite rose 3.5% year over year.

Earnings at a Glance

Consumer electronics retailer Best Buy Co. Inc. BBY saw 5.8% year-over-year growth in same-store sales in second-quarter fiscal 2021. Online sales surged 242% year over year.

Quarterly adjusted earnings of $1.71 per share surpassed the Zacks Consensus Estimate of $1.09 and increased from $1.08 reported a year-ago. Revenues of $9.91 billion exceeded the Zacks Consensus Estimate of $9.84 billion and improved from the year-ago amount of $9.54 billion. However, the company said its third-quarter sales will be impacted by the ongoing pandemic. For a detailed analysis of BBY's earnings, click here.

Global medical devices manufacturer Medtronic plc MDT reported second-quarter fiscal 2021 adjusted earnings per share of 62 cents, beating the Zacks Consensus Estimate of 21 cents. It had reported earnings of $1.26 per share a year earlier. Revenues of $6.51 billion surpassed the Zacks Consensus Estimate of $5.38 billion. However, the year-ago figure was $7.49 billion. For a detailed discussion of MDT's earnings, click here.

Meat-based food product producer Hormel Foods Corp. HRL reported third-quarter fiscal 2020 adjusted earnings per share of 37 cents, ahead of the Zacks Consensus Estimate of 33 cents and flat year over year. Revenues of $2.38 billion outpaced the Zacks Consensus Estimate of $2.29 billion and increased from $2.29 billion in the prior-year quarter. For knowing more on HRL's earnings, click here.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

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Exxon Mobil Corporation (XOM): Free Stock Analysis Report

Medtronic PLC (MDT): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

Pfizer Inc. (PFE): Free Stock Analysis Report

Honeywell International Inc. (HON): Free Stock Analysis Report

Best Buy Co., Inc. (BBY): Free Stock Analysis Report

Hormel Foods Corporation (HRL): Free Stock Analysis Report, inc. (CRM): Free Stock Analysis Report

Amgen Inc. (AMGN): Free Stock Analysis Report

Raytheon Technologies Corporation (RTX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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