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Morning Brief: U.S.-China trade talks conclude as hopes of a deal build


Wednesday, January 9, 2019

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WHAT TO WATCH

Two major U.S. homebuilders will report quarterly earnings, offering color on a period during which the housing market continues to cool. Lennar (LEN) and KB Home (KBH) are each set to report quarterly results Wednesday, giving some of the first hints of the direction of the housing industry heading into 2019.

Wall Street expects Lennar to post fourth-quarter 2018 adjusted earnings of $2.03 per share on revenue of $6.53 billion, as well as quarterly orders of 11,300, according to Bloomberg data. Lennar in its previous earnings release lowered its guidance for deliveries, orders and earnings for the fiscal fourth quarter, at the time citing rising mortgage rates and higher home prices that cut affordability. KB Home is expected to report earnings of 93 cents per share on revenue of $1.33 billion, and also provided dimmer guidance on similar concerns.

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TOP NEWS

(AP Photo/Andy Wong)

U.S.-China trade talks conclude as hopes of a deal build: Chinese and U.S. teams ended trade talks in Beijing on Wednesday that lasted longer than expected and officials said details will be released soon, raising hopes an all-out trade war that could badly disrupt the global economy can be avoided. [Reuters]

Trump's shutdown speech does little for painful standoff: President Donald Trump made a televised appearance on Tuesday night from the Oval Office as the second-longest ever government shutdown dragged on. Democrats countered by asking for an end to the shutdown through further negotiations. Trump’s proposed $5.7 billion steel wall to fence the nearly 2,000-mile southern border is facing staunch opposition from House Democrats. [Yahoo Finance]

Tim Cook’s $12M bonus for 2018 is his biggest ever: Apple Inc. Chief Executive Officer Tim Cook collected his biggest-ever annual bonus for fiscal 2018 after the iPhone maker posted record revenue and profit, and its market value temporarily eclipsed $1 trillion. [Bloomberg]

China to propose wider 2019 fiscal deficit: China’s Finance Ministry is set to propose a deficit target of 2.8% of gross domestic product as officials seek to balance support for the economy with the need to keep control of debt levels, two people familiar with the matter said. The figure, which compares with 2018’s target of 2.6%, will be presented for approval at the National People’s Congress, China’s legislature, in March. The final number could still change.

Eddie Lampert gets another chance to save Sears: Eddie Lampert will get another shot at rescuing Sears Holdings Corp. from liquidation. The Sears chairman and former chief executive officer must put up $120 million by Wednesday to get a chance to take part in an auction against other bidders, [Bloomberg]

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