Stocks Set for Another Round of Fresh Highs
Talks of reducing some of the tariffs imposed on Chinese goods back in September are reportedly in the works
Stock futures are once again pointing to all-time highs today, with Dow futures more than 70 points above fair value amid reports the U.S. may roll back some of the $125 billion in tariffs on Chinese goods enacted in September. This fresh optimism on U.S.-China relations comes just ahead of today's trade data, set for release later this morning, and amid a mixed bag of corporate earnings hitting Wall Street today.
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The pharma stock options bulls swarmed after earnings. 3 stocks that scored upgrades. Plus, Peloton posts inaugural earnings; MYGN stock sinks to bottom of Nasdaq; and Adobe lifts 2020 outlook.
5 Things You Need to Know Today
The Cboe Options Exchange (CBOE) saw 1.48 million call contracts traded on Monday, compared to 791,260 put contracts. The single-session equity put/call ratio moved up to 0.54, while the 21-day moving average came in at 0.64. Wall Street freshman Peloton Interactive Inc (NASDAQ:PTON) posted its first earnings results as a public company this morning. The exercise bike specialist beat revenue, and subscription numbers more than doubled year-over-year. The stock is up 1.1% ahead of the bell. Drugmaker Myriad Genetics, Inc. (NASDAQ:MYGN) is one of the biggest losers on Wall Street this morning, down 38.9% in electronic trading after slashing its 2020 forecast, and posting worse-than-expected first-quarter profits. MYGN is set to open at a new two-year low around $21 per share.Adobe Inc (NASDQ:ADBE) stock is up 13.9% in electronic trading after hiking its fourth-quarter digital media annualized recurring revenue target by $25 million to roughly $475 million. Several analysts have already lifted their price targets, including a hike from Jefferies to $350 -- a roughly 26% premium to last night's close at $277.50.Today's stock market calendar features international trade data, Markit's services purchasing managers index (PMI), the Institute for Supply Management's (ISM) non-manufacturing index, and the Job Openings and Labor Turnover Survey (JOLTS). Minneapolis Federal Reserve Bank President Neel Kashkari will speak after the close. Allergan (AGN), Amarin (AMRN), Chesapeake Energy (CHK), GW Pharmaceuticals (GWPH), Kratos Defense (KTOS), Match Group (MTCH), Mylan (MYL), Newmont Mining (NEM), Regeneron Pharmaceuticals (REGN), Tapestry (TPR), Whiting Petroleum (WLL), and WW (WW) make up the earnings slate.
Asian Markets Flourish on Tariff Talks, While Europe Eyes Economic Data
Stocks in Asia took their cues from U.S. equities today and added solid gains across the board. Japan's Nikkei was the big winner, rising 1.8% and touching a new 2019 high, paced by a big move from conglomerate SoftBank Group. South Korea's Kospi tacked on 0.6%, while Hong Kong's Hang Seng finished 0.5% higher. Rounding out the region, China's Shanghai Composite gained 0.5%, despite the Caixin/Markit services purchasing managers index (PMI) coming in at a seven-month low for October.
Over in Europe, markets are cautiously higher. London's FTSE 100 is up 0.3%, despite tepid data from the U.K.'s services sector. However, higher consumer spending data in the region is brightening sentiment. Elsewhere, the French CAC 40 is also up 0.3%, while the German DAX is clinging to a 0.1% lead.