Trump tweeted on Canada trade negotiations over the weekend
Stocks are set to start September on a negative note, with futures on the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) all trading below fair value this morning. U.S. trade relations remain in the spotlight, after President Donald Trump tweeted over the weekend, "There is no political necessity to keep Canada in the new NAFTA deal." The two countries are expected to resume negotiations this Wednesday, Sept. 5.
Meanwhile, oil prices are soaring, on expectations Tropical Storm Gordon will develop into Hurricane Gordon as it makes landfall along the Gulf of Mexico later today. At last check, October-dated crude futures are up 2% at $71.22 per barrel.
Continue reading for more on today's market, including:
- This pharma stock could score new highs soon.
- 2 real estate stocks flashing "buy" signals.
- Options bears piled on Goodyear stock after a downgrade
- Plus, Nike taps Kaepernick; Facebook gets downgraded; and the pharma stock up 30% ahead of the bell.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.01 million call contracts traded on Friday, compared to 633,690 put contracts. The single-session equity put/call ratio climbed to 0.63, and the 21-day moving average remained at 0.61.
- Nike Inc (NYSE:NKE) has included controversial NFL quarterback Colin Kaepernick as part of its 30th anniversary "Just Do It" campaign, sparking a #NikeBoycott hashtag on Twitter. NKE -- which has been one of the best Dow stocks this year -- is set to open the session lower, but could find support near the round $80 area, currently home to its rising 30-day moving average.
- MoffettNathanson downgraded Facebook, Inc. (NASDAQ:FB) to "neutral" from "buy," and slashed its price target by $25 to $175, citing concerns over slowing revenue growth and regulatory pressures. The social media stock is bracing for a 1.2% drop out of the gate, following last week's rejection at its 20-day moving average.
- The shares of Recro Pharma Inc (NASDAQ:REPH) are trading up 31% ahead of the bell, after the drugmaker said it plans to resubmit a marketing application for its non-opioid drug to the Food and Drug Administration (FDA). REPH stock got cut in half last May when the FDA rejected the pain treatment.
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Construction spending, the Markit purchasing managers manufacturing index (PMI), and the Institute for Supply Management's (ISM) manufacturing index will be released today. For earnings, RH (RH) and Workday (WDAY) will report.
China Stocks Snap Losing Streak
Asian stock markets mostly climbed higher today following a downbeat start to September in Monday's trading. China's Shanghai Composite led the way with a 1.1% rise, ending its five-session losing streak, thanks in large part to strength from bank stocks. The Hang Seng wasn't far behind in Hong Kong, closing up 0.9%, and South Korea's Kospi also gained, up 0.4% by session's end. On the other hand, the Nikkei dipped 0.05% in Japan.
Turning to Europe, stocks are sharply lower at the halfway point, as investors continue to monitor the uncertain global trade backdrop. One of the most notable losers is advertising company WPP, with the stock down more than 6% following a disappointing outlook. Car stocks are also struggling amid the concerns about global trade. Overall, the French CAC 40 has fallen 1.6% so far, the German DAX is down 1.4%, and London's FTSE 100 is off 0.6%.