Stocks Heat Up as North Korea Tensions Cool Down; Retail in Focus

Following yesterday's triple-digit rebound, Dow Jones Industrial Average (DJIA) futures are pointing to another positive open today. Tensions between the U.S. and North Korea continue to cool off, with North Korea leader Kim Jong Un's decision to not launch a threatened missile attack on U.S. island territory Guam. Meanwhile, U.S. retail sales jumped by more than expected in July, notching the biggest gain in seven months, and several retailers will be in the spotlight after earnings today, including Dow stock Home Depot, which was last seen modestly lower in pre-market trading. 

Continue reading for more on today's market, including:

• Trading takeaways from the Cuban Missile Crisis, courtesy of Schaeffer's Senior VP of Research Todd Salamone.
• The Dow stock that should be on your radar.
• 3 oil stocks for contrarian traders.
• Plus, the sporting goods stock in the hole; Coach stock in retreat; and the casino concern trading higher.

1. The Chicago Board Options Exchange (CBOE) saw 692,332 call contracts traded on Monday, compared to 410,095 put contracts -- the fewest puts since April. The single-session equity put/call ratio fell to 0.59, and the 21-day moving average remained at 0.68.
2. Dicks Sporting Goods Inc (NYSE:DKS) is set for an ugly session, with shares of the sporting goods retailer down 16% in pre-market action following a disappointing second-quarter earnings report and full-year outlook. This pre-market move would put DKS stock near seven-year-low territory. At last night's close of $34.91, the equity has already shed more than one-third of its value in 2017.
3. Luxury retailer Coach Inc (NYSE:COH) could also struggle today, as the shares were last seen trading 7.1% lower before the open. While the company’s quarterly profit roughly doubled, its fiscal fourth-quarter revenue and full-year forecast were worse than expected. This leaves Coach stock -- which hit a three-year high of $48.85 last month -- vulnerable to analyst downgrades. 
4. On the other hand, casino concern Wynn Resorts, Limited (NASDAQ:WYNN) is up 2.4% in electronic trading, thanks to an upgrade to “buy” from “hold” at Deutsche Bank, which also raised its price target to $150 from $138, representing territory not seen since February 2015. WYNN stock pulled back following the company’s most recent earnings release late last month, but could now find support in its 100-day moving average.
5.  Import and export data, the Empire State manufacturing survey, business inventories, the NAHB housing market index, and Treasury International Capital (TIC) data are all due today. Advance Auto Parts (AAP), Agilent (A), Staples (SPLS), and Urban Outfitters (URBN) will report earnings.

Overseas Trading

Stocks in Japan settled comfortably higher today, with the Nikkei rising 1.1% as the yen gave back some ground to a resurgent U.S. dollar. Cooling geopolitical risk and a strong start to the week for Wall Street boosted sentiment, helping China's Shanghai Composite to a gain of 0.4%. However, Hong Kong's Hang Seng ended the day down 0.3%. South Korean markets were closed for Independence Day.

European markets are also enjoying a relief rally at midday, after Kim Jong-Un appeared to back down from a nuclear threat against Guam. However, upside is limited, with traders eyeing a mixed reading on German gross domestic product (GDP), along with weakness in retailers after sector giant Next was slapped with a downgrade to "sell" at Berenberg. At last check, London's FTSE 100 is 0.6% higher, the French CAC 40 is up 0.4%, and the German DAX has edged up 0.3%.