Stock Futures Higher on Easing Iran Tensions
President Trump said Iran "appears to be standing down"
U.S. stock futures are higher this morning, as investors digest comments from U.S. President Donald Trump that Iran "appears to be standing down," following the non-fatal ballistic missile attacks on two U.S. military bases in Iraq. Elsewhere, jobless claims fell for the fourth week in a row, despite unemployment rates continuing to roll higher. In response, futures on the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are all pacing toward a positive open.
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Options bears are targeting this volatile pharmacy stock. How call options on this energy stock could quadruple. Plus, BBBY stock sinks after earnings; COST stock pops on December sales; and KO gets a bull note.
5 Things You Need to Know Today
The Cboe Options Exchange (CBOE) saw 1.45 million call contracts traded on Tuesday, compared to 682,223 put contracts. The single-session equity put/call ratio moved up to 0.47, while the 21-day moving average remained at 0.54.Bed Bath & Beyond Inc (NASDAQ:BBBY) is down 12.4% this morning after posting a fiscal third-quarter loss of 38 cents, compared to analysts' estimated loss of 3 cents per share. BBBY also withdrew its full-year forecast and reported lower-than-expected revenue for the same quarter. Costco Wholesale Corporation (NASDAQ:COST) this morning reported a 9% increase in comparable sales for December, which totaled to $17.04 billion in net sales. The stock is up 0.8% in response. The shares of Coca-Cola Co (NYSE:KO) are up 1.2% after Credit Suisse upgraded the soda concern to "outperform" from "neutral." The analyst cited positive structural changes that could lead to growth in revenue and investment returns. A number of central bank leaders will take the proverbial podium today, including Fed Vice Chairman Richard Clarida, Chicago Fed President Charles Evans, and St. Louis Fed President James Bullard. Earnings announcements from Acuity Brands (AYI), AZZ (AZZ), KB Home, Synnex (SNX), and WD-40 (WDFC) are expected.
Asian Markets See Lift on Diffused Geopolitical Risks
Markets in Asia finished higher today, taking cues from President Trump's comments that Iran appeared to be "standing down," defusing geopolitical risk in the Middle East at least temporarily. Japan's Nikkei paced the region with a 2.3% gain, while South Korea's Kospi added 1.6%. Hong Kong's Hang Seng gained 1.7%, and China's Shanghai Composite tacked on 0.9% following reports Vice Premier Liu He will head to Washington next week to sign a phase-one trade deal with the U.S.
Over in Europe, stocks are in the process of advancing thanks to easing U.S.-Iran tensions and upbeat trade headlines. London's FTSE 100 is 0.4% higher at last check, although retailer Marks & Spencer is under pressure after cutting its guidance. The French CAC 40 is up 0.1%, while the German DAX is 1% higher thanks to German factory output that beat expectations.