The U.S. tariffs against China went into effect this morning
Dow Jones Industrial Average (DJI) futures are trading just above fair value today, reversing course and climbing higher after an early deficit. Stock futures initially took a tumble once President Donald Trump's duties on $34 billion of Chinese goods went into effect and China responded in kind with its own levies. However, the damage has since been mitigated by the strong monthly nonfarm payrolls report, which indicated the U.S. gained 213,000 jobs in June, beating economists' forecast of 200,000. Although the unemployment rate ticked up to 4%, the encouraging report was enough to lift S&P 500 Index (SPX) and Nasdaq-100 (NDX) futures higher as well.
Continue reading for more on today's market, including:
- These 2 penny stocks got slammed yesterday.
- Options bears blitzed struggling Tesla stock.
- Plus, Biogen's big Alzheimer's breakthrough; Deutsche Bank and JPMorgan rumors; and General Motors feels the tariff pinch.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 763,068 call contracts traded Thursday, compared to 460,583 put contracts. The single-session equity put/call ratio fell to 0.60, while the 21-day moving average climbed to 0.58.
- Biogen Inc (NASDAQ:BIIB) stock is up a whopping 12% in electronic trading, after the company's Alzheimer's drug was successful in its mid-stage study. Biogen stock is now pacing for its highest open since early February. As of yesterday's close at $298.81, BIIB had already added 20% since a late-April bottom of $249.17.
- Deutsche Bank AG (NYSE:DB) stock is up 3.3% ahead of the bell, after reports surfaced that JPMorgan Chase (JPM) and Industrial and Commercial Bank of China were considering acquiring a stake in the German bank. JPM has since denied the report. Deutsche Bank stock has been mired in a channel of lower lows all year, shedding 41% and culminating in a nearly two-year low of $10.36 on June 27.
- Shares of General Motors Company (NYSE:GM) are down 0.4% in electronic trading, as the U.S.-China tariffs go into effect. GM stock could be on track for its fourth straight weekly loss, although the dip appears to be contained by its 80-day moving average.
- International trade data and the Baker-Hughes weekly rig count will also be featured today.
Asian Markets Creep Higher; European Stocks Lower
Stocks in Asia ended modestly higher today, bouncing back from the prior session's red ink -- but major equity benchmarks in the region ended the week with losses in excess of 2%. China's Shanghai Composite fell to a new two-year low in intraday action before closing up 0.5%, matching the Hang Seng's gain in Hong Kong. Japan's Nikkei snapped a three-day losing streak to add 1.1%, and South Korea's Kospi rose 0.7%.
European bourses are hovering just south of breakeven at midday, as traders keep a wary eye trained on the freshly imposed tariffs between the U.S. and China. Automakers are giving back some of Thursday's gains, led by a 2% slide for Renault shares in Paris. At last check, the French CAC 40 and German DAX have dipped 0.05%, and London's FTSE 100 is 0.4% lower.