Stock Futures Signal Comeback After China Stabilizes Currency

Dow Jones Industrial Average (DJI) futures are signaling a positive session today, after yesterday's dramatic trade-induced sell-off produced the worst trading day of 2019. Futures are more than 100 points above fair value this morning, after the White House declared China a currency manipulator -- and in response, the People's Bank of China (PBoC) set the yuan's reference point higher than expected, effectively cooling currency war concerns. 

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

• The major volatility clue from last Friday's VIX close, according to Schaeffer's Senior V.P. of Research Todd Salamone.
• This precious metals stock could shine after earnings.
• 3 video game stocks spiraling after Trump's gun violence concerns.
• Plus, Take-Two rallies on blowout earnings; a C-suite shakeup at L Brands; and MasterCard buys Nets.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw 961,684 call contracts traded on Monday, compared to 812,339 put contracts. The single-session equity put/call ratio fell to 0.84, while the 21-day moving average rose to 0.63.
2. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) stock is up 7.1% in electronic trading, after the video game maker reported fiscal first-quarter earnings and revenue that topped analysts' expectations. It also upped its full-year guidance thanks to rousing success from its “Red Dead Redemption” and “Grand Theft Auto” games. TTWO has been one of the best stocks to own in August.
3. L Brands Inc (NYSE:LB) stock is down 1.6% ahead of the bell, after the company's chief marketing officer, Edward Razek, stepped down amid growing frustration over the Victoria’s Secret brand strategy. LB has shed 26% year-over-year, culminating in a June 10 low of $21.44.
4. The shares of Mastercard Inc (NYSE:MA) are up 1.7% in electronic trading, after the credit card company announced a $3.19 billion deal to acquire a majority of   European payments company Nets' corporate services businesses. MA nabbed a record high of $283.33 on July 29, and the subsequent pullback found support at its 100-day moving average.

5. Today's economic calendar features the Job Openings and Labor Turnover Survey (JOLTS). Walt Disney (DIS), Bausch Health (BHC), Blue Apron (APRN), Chesapeake Energy (CHK), Hertz (HTZ), Match (MTCH), Microchip Technology (MCHP), Mosaic (MOS), Nu Skin Enterprises (NUS), Paysign (PAYS), Wynn Resorts (WYNN), WW International (WW), and Weibo (WB) will step up to the earnings plate.

Asian Stocks Extend Pullback, Economic Data Propping Up Europe

Asian equities faced more losses as trade tensions rose further after the U.S. labeled China a currency manipulator -- a move that was followed up by the Chinese central bank setting the yuan’s reference point higher than expected. The Shanghai Composite led the decline, falling 1.6%, and Hong Kong’s Hang Seng slid 0.7%. The pullbacks in the indexes came despite strength out of rare earth producers, with some speculating China could use the materials as leverage in trade talks. Japan’s Nikkei also gave back 0.7%, while South Korea’s Kospi fell 1.5%. 

China’s move to curb the slide in the yuan is bringing some buyers back into European markets. Traders are also considering economic data out of Germany, where the construction purchasing managers index (PMI) contracted in July, though industrial data from the country for June topped expectations. At last check, London's FTSE 100 was up a modest 0.2%, the German DAX had gained 0.7%, and France’s CAC 40 was up 1%.