Dow Futures Signal a Third Straight Day of Strong Gains

Futures on the Dow Jones Industrial Average (DJI) are trading well above fair value -- signaling a third straight day of gains, following yesterday's volatile session. Lifting investor sentiment are easing fears of a possible trade war between the U.S. and China, with officials from both sides signaling support for negotiations before the tariffs actually go into effect. Traders are also digesting the latest jobs data ahead of tomorrow's nonfarm payrolls report, with weekly jobless claims climbing more than expected last week.

Meanwhile, on the corporate front, JPMorgan Chase (JPM) CEO Jamie Dimon released his annual letter to shareholders. The banking exec warned that rate hikes may need to take place faster than investors expect, and said volatility in markets could eventually hamper economic growth.

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

• Why this food stock popped on Beijing tariff buzz.
• The upgraded beer stock crushing shorts.
• How traders are playing Fiat stock amid China's trade threats.
• Plus, bullish analysts say to buy Spotify; a sinking drug stock; and Wells Fargo gets upgraded.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 760,641 call contracts traded on Wednesday, compared to 476,721 put contracts. The single-session equity put/call ratio fell to 0.63, and the 21-day moving average stayed at 0.64.
2. Both Canaccord Genuity and Stifel initiated coverage on Spotify Technology (NYSE:SPOT) with upbeat "buy" ratings, with the former setting a $200 price target -- a nearly 39% premium to last night's close at $144.22. Shares of the streaming music service began trading publicly on Tuesday, opening at $165.90, and are set to open today's trading up 3%.
3. Roughly one month after Oppenheimer waxed optimistic on its fatty liver disease drug, Conatus Pharmaceuticals Inc (NASDAQ:CNAT) reported disappointing mid-stage trial data for the treatment, emricasan. A round of bearish brokerage notes -- including a price-target cut to $14 from $16 at Oppenheimer -- is applying additional pressure, with CNAT stock down 28.5% in electronic trading.
4. UBS upgraded Wells Fargo & Co (NYSE:WFC) to "buy" from "neutral," saying it looks like a prime time to buy the dip on the bank stock. The brokerage firm also cut its price target to $60 from $63, though this still represents expected upside of 13.4% to last night's close. WFC shares are trading 1% higher ahead of the bell.
5. In other news today, the U.S. trade deficit hit a nearly 10-year high in February; Atlanta Fed President Raphael Bostic is scheduled to speak; and Schnitzer Steel (SCHN) reported earnings.

Tokyo Stocks Boom on a Cooling Yen

Stocks in Asia finished higher today on easing trade tensions, after China's ambassador to Washington met Wednesday with acting Secretary of State John Sullivan. Japan's Nikkei gained 1.5%, as the yen weakened against the dollar. South Korea's Kospi added 1.2%, led by a 3.9% surge from Samsung Electronics ahead of its first-quarter earnings forecast tomorrow. Hong Kong and China markets were closed for the Ching Ming Festival.

At midday, markets in Europe are also higher amid signs the U.S. and China are open to trade negotiations. Against this backdrop, exporters and bank stocks are among the top gainers in the region, as traders shrug off softer-than-expected readings on German industrial orders and the IHS/Markit eurozone composite purchasing managers index (PMI). London's FTSE 100 is up 1.5% at last check, despite a 12.7% skid from healthcare stock BTG amid an impairment charge. The French CAC 40 is up 1.9%, with video game stock Ubisoft boasting an 8.9% gain thanks to strong traction for its Far Cry 5 title. Lastly, the German DAX is up 2.2%.