U.S. equities are underwater
U.S. equities are underwater after a week-long rally gets a little fatigued as the government shutdown drags on following the meeting walkout yesterday, though progress on the China trade front included news that China's top trade negotiator will be visiting DC later this month. Rather than give up on his wall, Trump is likely to use disaster funds for its build out and has cancelled his trip to Davos, according to the WSJ. Fed's Powell underscoring patience yesterday and a flexible approach was echoed by his VC Clarida as well, continuing to keep the "Powell Put" alive. The Dow is 62-points lower, S&P faltered 8-points and NASDAQ is off 25-points in pre-market action. Europe is taking a breather, mostly lower, with the Euro Stoxx 50 -0.6%, German DAX -0.8% and French CAC -0.9%. This contrasted gains in Asia that saw Japan's N-225 rally nearly 1%, while the HK Hang Seng +0.5% was up and China's CSI +0.7% climbed as well. Activision Blizzard tanked 9% after cutting off a video game studio. Citigroup and Valueact will share more information, lifting the former's shares somewhat. Starbucks sank 2.5% after a Goldman downgrade, who also cut Yum Brands -3%. PG&E -4.5% sank after Moody's cut its debt deeper into junk. Netflix rallied 2.5% after CS boosted its subscriber estimates. Major bank earnings out starting next week.