The U.S. added a stronger-than-expected 196,000 new jobs last month
Stock futures are signaling a higher open, after a report from China's Xinhua News Agency indicated Chinese President Xi Jinping communicated to U.S. President Donald Trump through Vice Premier Liu He that significant headway had been made in trade negotiations between the two countries, and a deal should made as quickly as possible. Traders are also digesting a stronger-than-expected nonfarm payrolls report, which showed the U.S. added 196,000 new jobs in March. Against this backdrop, Dow Jones Industrial Average (DJI) futures are trading above fair value, with the blue-chip index set for a big weekly gain.
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5 Things You Need to Know Today
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The Chicago Board Options Exchange (CBOE) saw 846,444 call contracts traded on Thursday, compared to 496,533 put contracts. The single-session equity put/call ratio rose to 0.59, and the 21-day moving average remained at 0.62.
- Morgan Stanley upgraded Bed Bath & Beyond Inc. (NASDAQ:BBBY) to "equal weight" from "overweight," and lifted its price target by $7 to $20, saying news of a potential proxy fight between a group of activitist investors and the retailer's board of directors will likely dictate stock performance until the company's annual shareholder meeting" -- expected in June. BBBY stock is up 3.8% in electronic trading, and could attempt to close a late-September bear gap near $18.80.
- Duluth Holdings Inc (NASDAQ:DLTH) reported fourth-quarter earnings of 64 cents per share on $250.5 million in revenue -- well below consensus estimates. The Wisconsin-based retailer also gave weaker-than-anticipated 2019 guidance. Price-target cuts from D.A. Davidson (to $19) and Stifel (to $21) are ramping up pressure, with DLTH stock down 21% ahead of the bell, set to trade at levels not seen since last June.
- The shares of Merrimack Pharmaceuticals Inc (NASDAQ:MACK) are bracing for a 15.7% drop out of the gate, after the drugmaker said it has suspended an early stage study for its MM-310 therapy to treat solid tumors following a review of safety data, and will no longer develop the treatment. After closing last night at $7.19, MACK stock is on track to trade below its 40-day moving average for the first time since early 2019.
- Ahead of next week's release of the minutes from the latest Fed meeting, Atlanta Fed President Raphael Bostic will speak.
Trade Optimism Fuels Upside for Most Global Stocks
Asian markets closed higher following a statement from Liu that a "new consensus" had been reached between the U.S. and China. While China’s Shanghai Composite and Hong Kong’s Heng Seng were closed for holiday, Japan’s Nikkei closed 0.4% higher, led by exporters, and South Korea’s Kospi closed 0.1% higher.
European markets are mixed at midday, afteTrump said a U.S.-China trade pact may still be "four weeks" away. At last check, London’s FTSE 100 is 0.2% above breakeven, the German DAX is 0.08% lower, and the French CAC 40 is 0.3% higher.