Chinese President Xi Jinping shakes hands with President Donald Trump before a bilateral meeting during the G20 Summit on June 29, 2019 in Osaka, Japan.
China News Service | Getty Images
Here are the most important things to know about Monday before you hit the door.
1. Stocks after trade deal
Monday will be the first full day of trading after phase one of the U.S.-China trade deal was unveiled.
China and the U.S. announced Friday they have reached a phase one trade deal that includes some tariff relief, increased agricultural purchases and structural changes to intellectual property and technology issues. President Donald Trump later said his administration would cancel its next round of tariffs on Chinese goods set to take effect Sunday. But 25% tariffs on $250 billion in imports will stay in place and existing duties on another $120 billion in products will be halved to 7.5%.
Stocks didn’t rally on the trade deal news due to its lack of clarity. Larry Kudlow appeared on CNBC’s “Power Lunch” on Friday and said the deal should lift business confidence, but “we will see how it works. We will see if the Chinese stay with their word.”
2. Manufacturing gauge
We’ll get a read on the health of the manufacturing sector in the New York area on Monday when the New York Federal Reserve releases its Empire State manufacturing survey. Economist polled by Dow Jones are expecting a read of 52.6 for December, the same as November’s read. While this number does not signal contraction, the U.S.-China trade war has taken a toll on the manufacturing sector.
We’ll also get a first read on manufacturing as whole with Manufacturing PMI and Services PMI flash readings on Monday.
3. Housing survey
We’ll get data on the strength of home building in the U.S. on Monday with the the National Association of Home Builders/Wells Fargo Housing Market Index set to release at 10:00 a.m. Economist polled by Dow Jones are expecting a read of 70 in December, the same as November’s read.
The nation’s single-family home builders are feeling good about their business, as any read about 50 is considered positive. However, the index has stopped rising after reaching its highest level of the year in October. The index measures current sales conditions, prospective buyers and sales expectations in the next six months.
Major events (all times ET):
8:30 a.m. Empire State manufacturing
9:45 a.m. Manufacturing PMI (flash)
9:45 a.m. Services PMI (flash)
10:00 a.m. NAHB Survey
4:00 p.m. TIC data
6:30 p.m. Minneapolis Fed President Neel Kashkari speaks
Major earnings:
Heico (before the bell)
—CNBC’s Fred Imbert and Jacob Pramuk contributed reporting.
