Stock Futures Rise, Tech Eyes Recovery
A Chinese official suggested respectful trade talks should continue with the U.S.
Futures on the Dow Jones Industrial Average (DJI) are moving on trade headlines once again, this time trading above fair value. Traders are responding to a report that China's Commerce Ministry said the U.S. and China should resolve the trade dispute through respectful conversations, while there are also rumors that Congress could intervene to try and stop President Donald Trump's Mexico tariffs. The Dow is now set for a triple-digit jump at the open, withS&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures in the black, as well, as tech shares try to recover from yesterday's sell-off.
Continue reading for more on today's market, including:
Schaeffer's Senior V.P. of Research Todd Salamone lays out the risks for an extended pullback. Drug news sends stock 30% higher. Antitrust concerns sparked unusual options trading on Facebook. Plus, bears unpack Box stock; Tiffany shares signal small swing; and small-cap makes another huge move.
5 Things You Need to Know Today
The Chicago Board Options Exchange (CBOE) saw 979,370 call contracts traded on Monday, compared to 659,855 put contracts. The single-session equity put/call ratio fell to 0.67, while the 21-day moving average came in at 0.70.Box Inc (NYSE:BOX) is getting slaughtered before the open, down 16%, after the company issued a disappointing full-year revenue outlook. Such a move would put BOX shares below the $15 mark for the first time in over two years. Last June, the cloud concern traded up near the $30 level. Upscale accessories specialist Tiffany & Co. (NYSE:TIF) is also a pre-market loser, shedding 3% before the open. The company cut its profit forecast for the year, as sales have been hit by a slowdown in international tourism -- a theme that also sparked PVH's earnings slide. Meanwhile, the 3% swing would be much smaller than options traders were pricing in. Acoustic shockwave technology developer Soliton Inc (NASDAQ:SOLY) has been a huge winner in recent weeks, and the shares are set for a 14% jump today after the company announced another breakthrough in its treatment for cellulite. SOLY has also benefited from advancements in its tattoo-removal technology. New York Fed President John Williams will speak andmotor vehicle sales and factory orders will be out. Ambarella (AMBA), Cracker Barrel (CBRL), GameStop (GME), Lands' End (LE), and Salesforce (CRM) will all step into the earnings confessional.
Auto Stocks Gain in Europe
Markets in Asia tumbled as Trump's comments Monday that China was engaging in a "blame game" amplified trade tensions. As a result, China's Shanghai Composite took the biggest hit, settling with a near 1% loss. Sinking tech stocks ramped up pressure elsewhere in the region, with Hong Kong's Hang Seng dipping 0.5%, while South Korea's Kospi and Japan's Nikkei gave back 0.04% and 0.01%, respectively.
European markets, on the other hand, are higher midday, as investors monitor Trump's three-day visit to the U.K. Auto stocks are also creating tailwinds, after Fiat Chrysler cleared a hurdle in its bid for Renault. London's FTSE 100 and France's CAC 40 have put on 0.2% each so far, while the German DAX has skyrocketed 1.2%.