Dow Futures Rise on Tariff Announcement
Trump said he would postpone the March 1 deadline
Dow Jones Industrial Average (DJI) futures are up over 100 points today, after President Donald Trump announced that he would be extending the March 1 deadline for tariff hikes on Chinese goods. The U.S. president tweeted that "substantial progress" in trade talks with China was made, and that he is planning a meeting with Chinese President Xi Jinping to "conclude an agreement," but did not specify the new deadline. As a result, trade-sensitive stocks like Caterpillar (CAT) and semiconductor makers are higher ahead of the bell.
Continue reading for more on today's market, including:
This FAANG stock is on sale, according to one signal. Why options bulls might want to put ETSY stock in their cart before earnings. 2 soaring stocks that just saw explosive options volume. Plus, GE soars on biopharma deal; the "Oracle of Omaha" speaks; and Sony unveils new smartphones.
5 Things You Need to Know Today
The Chicago Board Options Exchange (CBOE) saw 1.2 million call contracts traded on Friday, compared to 750,866 put contracts. The single-session equity put/call ratio dropped to 0.63, and the 21-day moving average stayed at 0.61. General Electric Company (NYSE:GE) stock soared 18.1% in pre-market trading, after the energy company announced plans to sell the biopharma arm of its company to Danaher. The sale will net GE $21.4 billion, which includes $21 billion cash, and is slated to close in the fourth quarter. GE stock is set to top its 160-day moving average for the first time since October. Berkshire Hathaway Inc. (NYSE:BRK.A) shares are 0.2% lower ahead of the bell, after the company reported fourth-quarter revenue that fell short of analysts' expectations. Warren Buffett also said he "overpaid" for Kraft Heinz (KHC). BRKA stock has been attempting a rebound off its December lows, but has been finding pressure at the $312,000 area. The shares of Sony Corp (NYSE:SNE) are up 1.3% in electronic trading, after the electronics concern unveiled its new smartphone featuring movie theater-style screens. SNE stock has added nearly 13% since its Feb. 7 annual low, and is now pacing for its eighth straight win. The economic schedule kicks off with the Chicago Fed National Activity Index and the Dallas Fed manufacturing survey. There will also be earnings reports from Rent-a-Center (RCII), Shake Shack (SHAK), and Tenet Healthcare (THC).
Asian Stocks Higher on Tariff News; Brexit Delay Has Europe Stocks Mixed
Stocks in Asia started the week on a positive note, after President Trump postponed the deadline on trade discussions with China. This news sent the Shanghai Composite up 5.6%, guiding the index to its best one-day gain since 2015 and back into bull-market territory. Hong Kong's Hang Seng gained 0.5% thanks to solid outings from bank and tech stocks. Rounding out the region, Japan's Nikkei added 0.5% while South Korea's Kospi tacked on 0.1%.
Over in Europe, markets are mixed, but stocks with exposure to U.S.-China trade negotiations got a boost. London's FTSE 100 is down 0.2%, at last check, after Prime Minister Theresa May delayed another parliament vote on Brexit. British homebuilder Persimmon is pacing a sector decline amid an inquiry by the housing minister into its participation in a government-funded housing plan. Elsewhere, the French CAC 40 is up 0.3% and German DAX is 0.4% higher, at last check.