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Pre-Markets in the Red on Trade War Fears

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As market participants tussle with the reality of President Trump’s trade war with China, Mexico and Canada to start a new week, booking gains since the start of the year — even since the November 5th election — is the popular move this morning. The Dow has so far shed -600 points, the S&P 500 is -100 and the tech-heavy Nasdaq is -400 points at this hour. The small-cap Russell 2000 is down -50.

Q4 Earnings Season Continues

In terms of sheer volume, this will be the biggest week of Q4 earnings season so far, even as many of the marquee names have already reported for the quarter. This week’s major reports will come from Google-parent Alphabet ((GOOGL - Free Report) , Walt Disney ((DIS - Free Report) and Amazon ((AMZN - Free Report) . Also PayPal ((PYPL - Free Report) , PepsiCo ((PEP - Free Report) , Uber ((UBER - Free Report) and Ford ((F - Free Report) will help fill out the quarter, which has so far been somewhat better than expected overall.

Early today, Zacks Rank #1 (Strong Buy)-rated Tyson Foods ((TSN - Free Report) posted a big beat on earnings, with $1.74 per share sweeping past the 79 cents analysts were looking for — a +44.3% earnings beat. Revenues of $13.62 billion also outpaced estimates by +1.09%. Shares are up +6% on the news — on an otherwise dismal trading morning — bringing the shares into positive territory year to date.

After today’s close, we’ll see earnings results from Clorox ((CLX - Free Report) and NXP Semiconductors ((NXPI - Free Report) , both of which are expected to bring in losses year over year on both top and bottom lines — double-digits lower on earnings. That said, it’s a good opportunity for both companies to post positive surprises.

Jobs Week Starts Tuesday

After today’s opening bell, we’ll start seeing economic prints hitting the tape. Among these will be January S&P final PMI for Services and Manufacturing, Construction Spending for December and January Auto Sales throughout the day.

It’s also Jobs Week this week. Beginning tomorrow, with the Job Openings and Labor Turnover Survey (JOLTS) numbers coming out for December, private-sector payrolls from ADP ((ADP - Free Report) for January are out Wednesday morning, Weekly Jobless Claims Thursday and the big Employment Situation report from the U.S. government on Friday ahead of the market open. Expectations there are for a still-strong +175K jobs filled last month, following a robust +256K for December, with an historically low +4.1% Unemployment Rate.

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