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Top 5 Things to Know in the Market on Tuesday

Published 08/27/2019, 05:36 AM
Updated 08/27/2019, 09:04 AM
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Investing.com - Here are the top five things you need to know in financial markets on Tuesday, August 27:

1. U.S. futures give back some gains

U.S. futures pointed to a slightly lower open on Tuesday in a sign of profit-taking after four volatile days in the U.S.-China trade war.

China's Foreign Ministry urged the U.S. to create conditions for talks, but again stopped short of confirming claims by President Donald Trump that Beijing had requested a restart of trade talks.

Wall Street rose more than 1% on Monday as both sides partially dialed back their rhetoric, although neither withdrew their threat of new tariffs.

Asian markets also gained, although Europe was mixed. Italy led gains on hopes of the formation of a new government, despite a pause in negotiations. The first round of talks with the Italian president begins at 10:00 AM ET (14:00 GMT) with a last chance set for Wednesday.

Read more: Netflix Slump: Buying Opportunity Or Long-Term Bear Signal? - Haris Anwar

2. U.S. consumer confidence expected to drop

The Conference Board will release its consumer confidence for August at 10:00 AM ET (14:00 GMT) amid expectations for the index to pull back from what was its highest level this year.

Consumers are underpinning domestic growth with a solid labor market generating wage increases above inflation.

In economic data elsewhere, China’s industrial profits returned to annual growth in July, thanks to a strong base effect.

Germany meanwhile confirmed that gross domestic product contracted in the second quarter as escalating trade conflicts and weakening foreign demand debilitated the export-driven economy.

3. Johnson & Johnson escapes with $572 million ruling in opioid trial

An Oklahoma court ordered Johnson & Johnson (NYSE:JNJ) to pay $572.1 million in damages on allegations that the company contributed to an opioid epidemic by deceptively marketing the painkillers.

Shares rose nearly 2% in premarket trade as analysts said the charge was much lower than expected.

4. Oil rises as Iran backs away from talks

Oil prices rose as Iranian President Hassan Rouhani said there could be no talks with U.S. President Donald Trump until sanctions imposed on Tehran were lifted, according to media reports.

U.S. economic sanctions against Iran have helped to cut off oil exports, limiting global supply.

Later on Tuesday, markets will shift their attention to U.S. crude inventories as the American Petroleum Institute releases weekly data amid expectations for a draw of 2.1 million barrels.

5. Boeing faces lawsuit from 737 MAX customer

Russian conglomerate Rostec confirmed that a subsidiary has filed a lawsuit against Boeing (NYSE:BA) to cancel an order for 737 MAX jets.

Rostec’s Avia Capital Service gave Boeing a $35 million deposit to secure the order, for 35 planes, which it is now requesting to be returned with interest along with $75 million in “lost profit”, $115 million in compensatory damages and further unspecified punitive damages, according to the Financial Times.

Rostec said however that it was ready to reach an out-of-court deal with Boeing.

-- Reuters contributed to this report.

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