Stocks are pointed higher amid trade optimism
Dow Jones Industrial Average (DJI) futures are cautiously higher this morning, as the blue-chip index looks for a fourth straight win. Both S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are pointed higher and are riding three-day winning streaks as well, while remaining within a chip-shot of record highs.
Investors are optimistic ahead of expected U.S.-China trade talks later this week, though President Donald Trump told Reuters that he doesn't "anticipate much" from the discussion. Also in the interview, Trump once again criticized Fed Chair Jerome Powell for raising interest rates; the Fed's latest meeting minutes will be in focus tomorrow.
Continue reading for more on today's market, including:
- Schaeffer's Senior V.P. of Research Todd Salamone's breakdown of earnings season, by the numbers.
- Surging AMD stock has room to run.
- Analyst: Buy this penny stock.
- Plus, Hertz CFO stepping down; Medtronic cheers a beat-and-raise; and more analysts growing wary of Tesla and Elon Musk.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.04 million call contracts traded on Monday, compared to 569,867 put contracts. The single-session equity put/call ratio dropped to 0.55, and the 21-day moving average slipped to 0.63.
- Hertz Global Holdings Inc (NYSE:HTZ) stock typically struggles in August, and today is no exception. HTZ is down 3.1% in electronic trading, after CFO Thomas Kennedy said he will resign. Nielsen Holdings (NLSN) CFO Jamere Jackson will succeed him, starting Sept. 10. HTZ has been in a channel of lower highs and lows since October, ending Monday at $21.05.
- Medtronic PLC (NYSE: MDT) stock is up 4.2% ahead of the bell, after the healthcare named reported fiscal first-quarter earnings and revenue that topped analyst forecasts. The company also raised its forecast for full-year organic revenue growth. Medtronic stock nabbed a record high of $91.50 on Aug. 14, and has added 10% in the past six months.
- Embattled Tesla Inc (NASDAQ:TSLA) stock is up 0.6% in electronic trading, despite Consumer Edge downgrading the electric car name to "equal weight" from "overweight." An analyst cited the ongoing Securities and Exchange Commission (SEC) probe, as well as Elon Musk's erratic behavior as reasons for the downgrade. In addition, Morgan Stanley discontinued its coverage of TSLA, and the Wall Street Journal yesterday reported that several suppliers are concerned about getting paid. Tesla stock is staring up at its year-to-date breakeven level, and has dropped more than 13% in the past week.
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No notable economic data is scheduled for today. However, Children's Place (PLCE), Kohl's (KSS), Pure Storage (PSTG), Red Robin (RRGB), TJX Companies (TJX), Toll Brothers (TOL), and Urban Outfitters (URBN) will step into the earnings confessional.
Stocks in Asia Surge
Stocks in Asia finished higher, with Chinese shares leading the charge after a banking regulator pushed for an increase in lending to boost infrastructure projects. The Shanghai Composite saw a 1.3% lift, and Hong Kong's Hang Seng picked up 0.6%. South Korea's Kospi gained 1% as tech stocks surged, while Japan's Nikkei finished up 0.09% amid a cooling yen.
Markets in Europe are trading mixed at midday, as investors digest a fresh round of corporate earnings. Specifically, a negative earnings reaction for BHP Billiton is weighing on mining stocks, while a post-earnings pop for John Wood Group is lifting the energy sector. At last glance, London's FTSE is 0.05% lower, Germany's DAX is up 0.7%, and France's CAC 40 is 0.8% higher.