Dow Futures Pop on Mnuchin Trade Comments
FDX and MU shares are on the rise post-earnings
Stock futures are trading higher this morning, trying to bounce back after a Fed-induced drop. Behind the risk-on approach are comments from Treasury Secretary Steven Mnuchin, who told CNBC a U.S.-China trade deal was "90% of the way there," and that he believes President Donald Trump and Chinese President Xi Jinping can make progress when they meet this week at the G-20 summit. There's also notable action on the earnings front, after FedEx (FDX) and Micron Technology (MU) both topped expectations with their quarterly reports. At last check, Dow Jones Industrial Average (DJI) futures were pointing to a nearly triple-digit rally at the open.
Continue reading for more on today's market, including:
Schaeffer's Senior Quantitative Analyst Rocky White digs into how stocks could react to the latest S&P peak. Weekly options pop on 2 restaurant winners. Inside Lennar's post-earnings sell-off. Plus, Fedex and Micron pop post-earnings; and Riot Blockchain rises again.
5 Things You Need to Know Today
The Chicago Board Options Exchange (CBOE) saw 867,248 call contracts traded on Tuesday, compared to 544,717 put contracts. The single-session equity put/call ratio rose to 0.63, while the 21-day moving average held at 0.64.Investors this morning are taking a hard look at the earnings call for FedEx Corporation (NYSE:FDX), as the shipping giant weighed in on the U.S.-China trade war. FedEx gave a cautious outlook for its fiscal year due to the trade tensions, with executives saying the international business has struggled as a result. They also added that they were "disappointed" about the assumptions they made for growth in international trade in recent years, "particularly with the Trump administration." Still, FDX shares are up 2% pre-market.Micron Technology, Inc. (NASDAQ:MU) is also on the rise after earnings, set to open up almost 9%. The chipmaker's quarterly results were better than many bears were expecting heading in, with the company saying it sees demand improving going forward. Cryptocurrency prices are on the rise again, with bitcoin in particular seeing a strong rally. As such, several names with exposure to the space, like Riot Blockchain Inc (NASDAQ:RIOT), are set for a strong start, with the former biotech trading up 11% before the open. Today's schedule is jam-packed with weekly crude inventories, data on MBA mortgage applications, and durable goods orders. International trade data is also on tap. Quarterly earnings reports are expected from BlackBerry (BB), General Mills (GIS), KB Home (KBH), and PayChex (PAYX).
Overseas Markets Mixed
Markets in Asia ended mixed as investors digested U.S. Federal Reserve Chairman Jerome Powell's latest comments over potential rate cuts. South Korea's Kospi inched 0.01% higher, while Hong Kong's Hang Seng gained 0.1%. Japan's Nikkei suffered the biggest loss on a 0.5% drop on blows from Fast Retailing and Softbank, and China's Shanghai Composite lost 0.2%.
European markets, on the other hand, are mostly higher at midday, boosted by renewed global trade optimism. The German DAX is up 0.5%, the French CAC 40 has tacked on 0.2% and London's FTSE 100 has gained 0.09%.