Dow Futures Higher on Trump Trade Comments
Over in the U.K., all eyes are on Prime Minister Theresa May's resignation
Dow Jones Industrial Average (DJI) futures are finally eyeing a positive open, after President Donald Trump said the trade war with China could be resolved soon, and a trade deal could result in relaxed restrictions on China's Huawei. He did, however, reiterate the security threat from the Chinese firm, calling it"very dangerous."Meanwhile, traders are digesting a smaller-than-expected drop in durable goods orders in April. Overseas, news that U.K. Prime Minister Theresa May will resign on June 7 has investors buzzing. May will be stepping down after a handful of attempts to reach a Brexit agreement failed. Despite today's positive open, all three indexes are pacing for a steep weekly loss.
Continue reading for more on today's market, including:
Research Firm: "Buyer beware" of this biotech.Options volume ran hot after a ROKU bull note.A short seller expects 70% downside for this stock. Plus, J.P. Morgan Securities weighs in on ROST; the FAANG stock expected to hit $3,000; and Alibaba gets a prestigious bull note.
5 Things You Need to Know Today
The Chicago Board Options Exchange (CBOE) saw 988,866 call contracts traded on Thursday, compared to 791,748 put contracts. The single-session equity put/call ratio rose to 0.80, while the 21-day moving average moved up to 0.68.Ross Stores, Inc. (NASDAQ:ROST) is down 2.5% in electronic trading, after the retailer issued a disappointing full-year profit outlook. Despite the grim forecast, J.P. Morgan Securities hiked its price target on ROST to $102 from $97. Since touching a year-to-date high above $100 in April, ROST stock has pulled back to support at its 200-day moving average, but could breach that trendline today.The shares of FAANG stock Amazon.com, Inc. (NASDAQ:AMZN) are up 1% ahead of the bell, after Piper Jaffray said it expects the equity to reach $3,000 in the next two years. From the stock's close of $1,815.48 yesterday, that target represents a 65% premium. AMZN has pulled back with the broader stock market recently, but remains 21% higher year-to-date.Alibaba Group Holding Ltd (NYSE:BABA) is up 1.6% ahead of the open, after Stifel added the Chinese tech firm to its "select list." The brokerage firm ssaid "the recent pullback has created an opportunity" to make a bullish long-term investment. BABA has been falling amid escalating trade war concerns, but remains 13.8% higher year-to-date.
Today investors are digesting durable goods orders data. Buckle (BKE) and Foot Locker (FL) will throw their hats into the earnings ring.
Markets Respond to May Resignation
There still wasn't much appetite for equities in Asia, as trade uncertainty kept a lid on stocks. China's Shanghai Composite managed a slim victory on the day, as did Hong Kong's Hang Seng, possibly helped by Trump's seemingly softer stance toward Huawei, but both ended with another weekly loss. On the negative side, Japan's Nikkei gave back 0.2%, and South Korea's Kospi closed with a 0.7% loss.
In Europe, the top story is the resignation of British Prime Minster Theresa May, who's stepping down to perhaps open a new path forward for Brexit negotiations. Markets are responding well, with the major indexes trading in the black at midday. The French CAC 40 and German DAX are both up 0.9%, and London's FTSE 100 is trading up 0.8%.