Dow Futures Higher on Trade Deal Optimism

Dow Jones Industrial Average (DJI) futures are trading more than 100 points above fair value this morning, with traders optimistic about U.S.-China trade talks. Specifically, a report from The South China Morning Post said that a meeting between Chinese President Xi Jinping and U.S. delegates is scheduled for Friday. This, after President Donald Trump said he'd be willing to let the March 1 trade deadline "slide for a little while," if the countries got close to a trade deal. In addition, Wall Street is keeping an eye on Washington, D.C., as Trump weighs the latest budget proposal ahead of Friday's government shutdown deadline.

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

• What this rare VIX streak means for stocks, according to Schaeffer's Senior Quantitative Analyst Rocky White.
• Bearish analysts blasted this drug stock.  
• The signal that says it's time to short Philip Morris stock. 
• Plus, Teva guidance disappoints; Deere stock gets a downgrade; and GE scores big orders. 

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 996,011 call contracts traded on Tuesday, compared to 570,208 put contracts. The single-session equity put/call ratio dropped to 0.57, and the 21-day moving average sunk to 0.62.
2. Teva Pharmaceutical Industries Ltd (NYSE:TEVA) stock is down 10.5% in pre-market trading, after reporting fourth-quarter earnings and issuing full-year guidance below analysts' expectations. The shares of TEVA have been attempting a rally off their Dec. 24 annual low, but ran into resistance in the round-number $20 area.
3. Deere & Company (NYSE:DE) shares are 1.4% lower ahead of the bell, after BofA-Merrill Lynch downgraded the tractor concern to "neutral" from "buy" ahead of earnings on Friday, Feb. 15. The stock has rallied more than 10% in 2019 atop its 20-day moving average, but appears to have stalled in the $165 level.
4. The shares of General Electric Company (NYSE:GE) are up 0.1% in electronic trading, after a report from Reuters said the energy company procured more orders for gas turbines in 2018 than any of its competitors. The equity gapped higher after earnings on Jan. 31, but ultimately lost steam around its 160-day moving average. 
5. The consumer price index (CPI), the weekly crude inventories report, and the Treasury budget are on today's economic schedule. Cleveland Fed President Loretta Mester will take the stage again, along with Atlanta Fed President Raphael Bostic in the morning. Quarterly earnings from Dow name Cisco Systems (CSCO), CenturyLink (CTL), Hilton Hotels (HLT), Marathon Oil (MRO) MGM Resorts (MGM), NetApp (NTAP), SunPower (SPWR), and Yelp (YELP) are all slated for release.
    

Asian Markets Up on Trade News, Europe Digests Inflation Data

Asian markets enjoyed solid gains today, getting a lift from Trump's comments about a possible extension to the March 1 deadline between the U.S. and China on tariff measures. China's Shanghai Composite erased early losses to finish up 1.8%, while Hong Kong's Hang Seng added 1.2% in a last-minute push higher. South Korea's Kospi gained 0.5%, while Japan's Nikkei tacked on 1.2% thanks to a big day from energy company Inpex.

Stocks in Europe are higher as well, buoyed by that same global trade optimism. London's FTSE 100 is up 0.7% as investors digest the latest inflation data, which saw Britain's consumer price index fall to a two-year low of 1.8% in January. At last check, the French CAC 40 is up 0.4%, while the German DAX is clinging to a 0.3% lead.