Mnuchin said the U.S. and China will begin face-to-face negotiations in January
It's set to be another positive session on Wall Street today, with Dow Jones Industrial Average (DJI) futures trading above fair value this morning. Traders are reacting to new U.S.-China trade headlines, with Treasury Secretary Steven Mnuchin telling Bloomberg News that the two countries will meet next month to restart negotiations.
The Fed is also in focus today, with the central bank widely forecast to raise its benchmark interest rate -- though market expectations for a hike have dropped dramatically in recent weeks. A press conference with Fed Chair Jerome Powell will also be watched closely for clues on the 2019 forecast for rate hikes.
Continue reading for more on today's market, including:
- The S&P could bounce into the new year, according to data from Schaeffer's Senior Quantitative Analyst Rocky White.
- Breaking down that quick-and-dirty S&P drop.
- Analyst: Booming video game stock is a "buy."
- Plus, a major pharma merger in the making; more data woes for Facebook; and Micron Technology sinks after earnings.
5 Things You Need to Know Today
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The Chicago Board Options Exchange (CBOE) saw 736,892 call contracts traded on Tuesday, compared to 507,383 put contracts. The single-session equity put/call ratio fell to 0.69, and the 21-day moving average edged down to 0.71.
- Pfizer Inc. (NYSE:PFE) and GlaxoSmithKline plc (NYSE:GSK) announced plans to form a joint venture with their consumer health businesses, to be majority-owned by GSK. The all-equity transaction will create the largest over-the-counter drug company, with an expected market share of roughly 7.3%. GSK plans to split this consumer side of its business into a separate company from its prescription drugs and vaccines within three years of the deal closing. PFE stock is up 1.5% in electronic trading, while the U.S.-listed shares of GSK have climbed 6.2%.
- Facebook, Inc. (NASDAQ:FB) has responded to a New York Times report accusing the social media giant of allowing tech companies like Microsoft Corporation (NASDAQ:MSFT) and Spotify Technology (NYSE:SPOT) unauthorized access to user data. The company said data was not accessible without permission, and did not "violate our 2012 settlement with the FTC." FB stock is down 1.7% in electronic trading, with a recent rally off its late-November lows halted by its 50-day moving average.
- Micron Technology, Inc. (NASDAQ:MU) reported a fiscal first-quarter adjusted profit beat of $2.97 per share, but revenue of $7.91 billion fell short of expectations. The tech company also gave a lower-than-expected current-quarter sales forecast, citing an oversupply of memory chips and cooling demand for smartphones -- and earned a downgrade to "hold" from Needham, along with a number of price-target cuts. MU stock is set to open down 6.5%, which is good news for those who bought pre-earnings puts on the equity.
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Existing home sales and the weekly crude inventories report are due out today. Cintas (CTAS), General Mills (GIS), Paychex (PAYX), and Winnebago (WGO) will report earnings.
Energy Stocks Sink China's Shanghai Composite
Asian markets were all over the place today, as investors around the globe expect the U.S. Fed will raise interest rates later today. Energy stocks across mainland China suffered, amid plunging oil prices and concerns of global oversupply. China's Shanghai Composite ended 1.1% lower, while Hong Kong's Hang Seng added 0.2%. South Korea's Kospi gained 0.8%, while Japan's Nikkei shed 0.6%. In Japan, the much-anticipated debut of SoftBank Group's mobile unit was a disappointment, with the stock closing 14.5% off its initial public offering (IPO) price.
In Europe, stocks are edging higher after reports emerged that Italy struck an agreement with the European Commission on an expansionary budget plan. Elsewhere, London's FTSE 100 is up 1.1% as investors digest Britain's inflation rate, which fell to a 20-month low in November. At last check, both the French CAC 40 and German DAX sported an 0.8% lead.