China will raise tariffs on U.S. goods starting June 1
Futures on the Dow Jones Industrial Average (DJI) have plummeted 480 points, after China said it will raise tariffs to as high as 25% on $60 billion worth of U.S. imports, starting June 1. This comes just after the U.S. raised tariffs on $200 billion in Chinese goods last week. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also deep in the red, after suffering their worst weekly losses in months, with tech stocks hit especially hard.
Continue reading for more on today's market, including:
- The China ETF that suffered its worst week in more than a year.
- Analyst downgrades Yelp stock after earnings.
- Citi says buy this stock's bull signal.
- Plus, Teva's legal woes; a retail giant announces a CEO resignation; and the weed stock lower on pre-earnings analyst attention.
5 Things You Need to Know Today
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The Chicago Board Options Exchange (CBOE) saw 1.01 million call contracts traded on Friday, compared to 815,091 put contracts. The single-session equity put/call ratio rose to 0.80, while the 21-day moving average moved up to 0.62.
- Drugmaker Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is down 10% in electronic trading, after several U.S. states filed a price-fixing lawsuit against the company, accusing it of scheming to stifle generic drug competition. TEVA stock has dropped nearly 6% so far in May, and is set to touch new annual lows today.
- Bed Bath & Beyond Inc. (NASDAQ:BBBY) is up 3.1% ahead of the bell, after the company announced CEO Steven Temares' resignation. The board said now is the time to identify the company's "next generation of leadership." BBBY is up 39% year-to-date.
- Weed name Tilray Inc (NASDAQ:TLRY) is down 2.3%, after Alliance Global Partners initiated coverage with a tepid "neutral" rating and $50 price target. TLRY has been in a long-term downtrend since late last year, already having shed 54% over the past six months. TLRY will report first-quarter earnings after the close tomorrow, May 14.
- Today's calendar is relatively quiet, with speeches from Boston Fed President Eric Rosengren and Fed Vice Chair Richard Clarida. Earnings will be reported by Bilibili (BILI), Kornit Digital (KRNT), and Take-Two Interactive (TTWO).
European Stocks Sink on China Trade
Even before investors were met with news that China was increasing tariffs on imports from the U.S., Asian markets already had closed mostly in the red for the day. Starting in China, the Shanghai Composite fell 1.2%, though Hong Kong’s Hang Seng managed an 0.8% win. South Korea’s Kospi fell 1.4%, and the Nikkei dropped 0.7% in Japan.
Stocks in Europe are falling to session lows amid the China-U.S. trade updates, with the major indexes pacing for their lowest closes in weeks. Germany’s DAX is being hit the hardest so far, down 1.3%, followed by a 1% pullback in France’s CAC 40. London’s FTSE 100, meanwhile, is down 0.4%.