Dow Futures Higher as Stocks Signal Another Win

Following yesterday's positive session, Dow Jones Industrial Average (DJI) futures are trading above fair value again. U.S.-China trade talks will remain the key focus, as the countries moved into an unscheduled third day of negotiations. Details of the talks, now concluded, are expected soon. Traders will also monitor headlines on the ongoing government shutdown, after President Donald Trump last night made his case to the nation for a border wall. Another win would mark a fourth straight for the Dow, which would be its best streak since early November.

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

• This rare sentiment signal could mark a buying opportunity, per Schaeffer's Senior Quantitative Analyst Rocky White.
• The upbeat numbers that lifted Verizon stock.
• Why you shouldn't buy this drugmaker's rally.
• Plus, beer and weed stocks make headlines; and payment processors get more analyst attention.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 922,529 call contracts traded on Tuesday, compared to 583,097 put contracts. The single-session equity put/call ratio moved up 0.63, and the 21-day moving average slipped to 0.72.
2. Constellation Brands, Inc. (NYSE:STZ) is down sharply in pre-market trading, last seen off 11.5% at $152.54, after the company cut its full-year forecast. These losses would push STZ shares below their Dec. 24 bottom of $156.25 and into two-year-low territory, extending a major sell-off from recent weeks.
3. Weed stock Tilray Inc (NASDAQ:TLRY) is in focus again, this time after Piper Jaffray began coverage with an "overweight" rating and $90 price target, marking an 8% premium to the equity's Tuesday close of $83.26. Brokerage firm Cowen said yesterday it was bullish on the cannabis sector for 2019, and cited Tilray as a name that could benefit.
4. Another group that's seen heavy analyst attention so far in 2019 is payments processors, with UBS weighing in this morning and naming Mastercard Inc (NYSE:MA) its top pick for the sector. Analysts upgraded MA to "buy" from "neutral" and lifted their price target to $226 from $206. Last week, Mizuho tapped rival Visa (V) as its favorite from the sector.
5. The weekly crude inventories report and the the Federal Open Market Committee (FOMC) meeting minutes are slated for release. Atlanta Fed President Raphael Bostic will speak once again. Boston Fed President Eric Rosengren and Chicago Fed President Charles Evans will also speak. It will be the heaviest day for earnings for the week, with Acuity Brands (AYI), Bed Bath & Beyond (BBBY), Delta Air Lines (DAL), KB Home (KBH), Lennar (LEN), and WD-40 (WDFC) stepping into the earnings confessional.

Trade Talks Lift Global Markets

Optimism surrounding U.S.-China trade talks and surging tech stocks created tailwinds for Asian markets today. Hong Kong's Hang Seng led the path higher, jumping 2.3% as news of Apple's iPhone production cut boosted chipmakers AAC Technologies and Sunny Optical. Elsewhere in the region, South Korea's Kospi rose 2%, Japan's Nikkei added 1.1%, and China's Shanghai Composite gained 0.7%.

European markets are boasting big gains at midday, with auto stocks soaring in the wake of trade negotiations between Washington and Beijing. This is overshadowing a drop in German exports in November and a fresh hurdle in Brexit negotiations for U.K. Prime Minister Theresa May, after an amendment aimed at limiting the government's ability to force through a no-deal Brexit won majority support from Labour and Conservative MPs. At last check, the French CAC 40 is up 1.4%, the German DAX is 1.3% higher, and London's FTSE 100 has gained 1.1%.