Traders could be taking a wait-and-see approach today
Following another weekly win, U.S. stock futures are trading cautiously above fair value this morning ahead of what could be a somewhat quiet day on Wall Street. Grabbing headlines is the growing conflict between the U.S. and Iran, with the Trump administration set to place additional sanctions on the Middle Eastern nation today. Investors also may be taking a wait-and-see approach ahead of this week's G-20 conference in Japan, where President Donald Trump is supposed to meet with Chinese President Xi Jinping. As such, the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) are all signaling just slightly positive opens.
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5 Things You Need to Know Today
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The Chicago Board Options Exchange (CBOE) saw 1.21 million call contracts traded on Friday, compared to 645,304 put contracts. The single-session equity put/call ratio edged up to 0.53, while the 21-day moving average was 0.65.
- Another analyst is cutting their outlook on Micron Technology, Inc. (NASDAQ:MU) ahead of the chipmaker's earnings release, scheduled for after the close tomorrow, June 25. Mizuho lowered its price target to $44 from $47, citing headwinds from the Huawei ban, similar to last week's bear note out of J.P. Morgan Securities.
- Music streaming service Spotify Technology SA (NYSE:SPOT) was cut to "underperform" from "in line" at Evercore ISI, while its price target was lowered to $110 from $125 -- well below Friday's closing price of $148.31. The brokerage firm said it simply doesn't see any way SPOT shares can reflect Wall Street's expectations in the medium term.
- On a more positive note, Deere & Company (NYSE:DE) was upgraded to "buy" from "hold" at Jefferies, which boosted its price target to $190 from $150. The brokerage foresees a more balanced agricultural market in the coming years. DE shares have rallied more than 18% in the past month.
- The week will kick off with the Dallas Fed manufacturing survey. There are no notable earnings reports.
Little Upside For Stocks in Asia or Europe
Asian markets made modest gains, as investors look toward the upcoming trade talks between the U.S. and China, happening at the G-20 summit in Osaka later this week. The Hang Seng in Hong Kong added 0.1%, while China's Shanghai Composite tacked on 0.2%. South Korea's Kospi inched atop breakeven, and Japan's Nikkei was up 0.1%.
Markets in Europe are lower, dampened by simmering tensions between the U.S. and Iran. The German DAX has taken the biggest hit so far, down 0.5% after the Ifo business climate index arrived at a lower-than-anticipated 97.4 -- its weakest reading since late 2014 . The French CAC 40 and the FTSE 100 in London have both dropped approximately 0.1%.