Dow Futures Sluggish as Trade Worries Linger
The 10-year Treasury yield fell to a 19-month low
Fresh off a fifth straight weekly loss, Dow Jones Industrial Average (DJI) futures are trading just above fair value this morning. In Tokyo yesterday, President Donald Trump said the U.S. was "not ready" for a trade deal with China, and implied steeper tariffs on Chinese imports could be on the way. As trade tensions linger without a resolution, the 10-year Treasury yield fell to a 19-month low.
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How to find the hottest sector ETF for summer, per founder and CEO Bernie Schaeffer.BofA-Merrill Lynch: The worst is behind this mining stock.One of the best biotechs to buy this week, historically.Plus, Beyond Meat eyes Europe; Alibaba plans Hong Kong listing; and Teva's big settlement.
5 Things You Need to Know Today
The Chicago Board Options Exchange (CBOE) saw 882,744 call contracts traded on Friday, compared to 671,818 put contracts. The single-session equity put/call ratio fell to 0.76, while the 21-day moving average remained at 0.68.Beyond Meat Inc (NASDAQ:BYND) stock is up 3.8% in electronic trading, after the company announced it's partnered with Zandbergen to produce plant-based meat products in Europe. J.P. Morgan Securities also initiated coverage on the vegan specialist with an "overweight" rating and $97 price target, just below its May 16 record high of $96.78. BYND has more than tripled its initial public offering (IPO) price of $25, settling Friday at $79.67.Alibaba Group Holding Ltd (NYSE:BABA) is up 1% ahead of the bell, after a Reuters report indicated the Chinese e-commerce giant was considering a $20 billion Hong Kong listing. BABA is fresh off its third straight weekly loss, but one analyst last week said this is a "buying opportunity."Shares of Teva Pharmaceutical Industries Ltd (NYSE:TEVA) are up 1% in electronic trading, after the drugmaker agreed to an $85 million settlement with the state of Oklahoma over its role in the state's opioid crisis. TEVA fell to a 19-year low of $10.82 on Friday, and has shed 50% over the past six months.
Today will kick off the short week with the release of the Conference Board's consumer confidence index and the S&P CoreLogic Case-Shiller home price index. Momo (MOMO), Nio (NIO), and Workday (WDAY) will all step into the earnings confessional.
Trump Visits Japan, Europe Eyes Italy Deficit
It was a positive, though rather uneventful, session for equities in Asia. Grabbing the most attention was President Trump's visit to Japan, where he indicated a trade deal with the country could come later this year. The Nikkei popped 0.4% in response. In China, the Shanghai Composite closed up 0.6%, and Hong Kong's Hang Seng added 0.4%. The Kospi closed with a 0.2% lead in South Korea.
In Europe, stocks are finding it difficult to gain momentum, as investors digest the weekend's parliamentary election results and growing concern about Italy's deficit situation. The uncertainty has France's CAC 40 and Germany's DAX holding near breakeven, while the FTSE 100 has managed a 0.3% lead, despite weakness in banking shares.