Dow Eyes All-Time Highs on Fresh Trade Optimism
Hopes that U.S. companies will soon be able to sell to Huawei is sending stocks higher this morning
Dow Jones Industrial Average (DJI) futures are signaling a record high today, up more than 100 points in pre-market trading after Commerce Secretary Wilbur Ross on Sunday confirmed that U.S. companies would be granted licenses to do business with Huawei in the near future. The S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also on track for more gains, following Friday's fresh highs. On the earnings front, Under Armour (NYSE:UAA) is in the spotlight, spiraling 15% in pre-market action after an accounting probe overshadowed its quarterly earnings beat.
Continue reading for more on today's market, including:
A Medicare ruling sent call traders to Amedisys. Why one analyst is selling this soaring stock. Plus, McDonald's fires CEO, Papa John's stock gets a downgrade, and First Horizon stock pops on merger.
5 Things You Need to Know Today
The Cboe Options Exchange (CBOE) saw 1.31 million call contracts traded on Friday, compared to 693,878 put contracts. The single-session equity put/call ratio moved down to 0.53, while the 21-day moving average came in at 0.65. McDonald's Corp (NYSE:MCD) is down 1.7% in electronic trading after the firm fired CEO Steve Easterbrook on grounds that a consensual relationship he was having with an employee was in violation of company rules. McDonald's USA President Chris Kempczinski will take his place. Jefferies downgraded pizza name Papa John's, Inc. (NASDAQ:PZZA) to "hold" from "buy," based on a boom in competition in the restaurant space. The stock has lost 1.4% ahead of the bell in response. Regional bank stock First Horizon (NYSE:FHN) is inching 0.4% higher on news of its merger of equals with sector peer Iberiabank (IBKC), which is also up this morning. The two companies will merge under the First Horizon name.Today's stock market calendar features factory orders and motor vehicle sales. Bausch Health (BHC), Cabot (CBT), Chegg (CHGG), Chemours (CC), Fabrinet (FN), Groupon (GRPN), Hertz (HTZ), Marriott (MAR), RingCentral (RNG), Shake Shack (SHAK), Sprint (S), Sysco (SYY), Tandem Diabetes Care (TNDM), Tenet Healthcare (THC), and Uber (UBER) make up the earnings schedule.
Huawei News Helps Boost Markets in Asia, Europe
Markets in Asia finished higher to start the week, taking cues from Wall Street's big day Friday and the latest trade headlines over the weekend. China's Shanghai Composite added 0.6%, on news that the U.S. would lift Huawei restrictions "very shortly," according to Commerce Secretary Ross. Hong Kong's Hang Seng paced the region with a 1.7% gain thanks to a big day from insurance giant AIA. Elsewhere, South Korea's Kospi gained 1.4%, while Japan's Nikkei was closed for holiday.
European stocks are also enjoying the U.S.-China trade tailwinds this morning. Both London's FTSE 100 and the French CAC 40 are 1% higher at midday. But the big story is the German DAX, up 1.3% and heading for its highest close in more than 17 months, propped up by upbeat manufacturing data and a positive earnings reaction from medical device name Siemens Healthineers.