Oil futures are up, as well
Dow Jones Industrial Average (DJI) futures are trading well above fair value this morning, getting a boost from Johnson & Johnson (JNJ) stock. This is offsetting uncertainty surrounding the latest U.S.-China trade headlines, after a spokesperson for China's Foreign Ministry said they were unaware of a phone call between the two countries that was touted by U.S. President Donald Trump. Elsewhere, oil futures are higher, too, with October-dated crude futures up 1.2% at $54.27 per barrel.
Continue reading for more on today's market, including:
- Schaeffer's Senior V.P. of Research Todd Salamone breaks down the latest VIX spike.
- Options bulls target more gains for red-hot Roku stock.
- Mylan stock could be in more trouble.
- Plus, more on JNJ; Zynga a "best idea"; and Papa John's gets new boss.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 758,100 call contracts traded on Monday, the fewest since March 28. This compares to 439,235 put contracts. The single-session equity put/call ratio plummeted to 0.58, while the 21-day moving average remained at 0.73.
- Johnson & Johnson (NYSE:JNJ) stock is up 1.4% in electronic trading, after an Oklahoma judge ordered the company pay $572 million for its role in the U.S. opioid crisis. This is significantly less than the $17 billion the state had requested. JNJ closed last night at $127.80, just below its year-to-date breakeven level.
- Zynga Inc (NASDAQ:ZNGA) stock is up 3.6% ahead of the bell, after being added to Wedbush's "Best Ideas" list. The brokerage firm waxed optimistic about the company's upcoming title releases. ZNGA has gained 42% in 2019 through last night's close at $5.60, but has shed 15% since its Aug. 1 seven-year high of $6.65 amid increased political pressure.
- The shares of Papa John's International, Inc. (NASDAQ:PZZA) are up 6.1% in electronic trading, after the company named Arby's Restaurant Group President Rob Lynch as its new chief executive officer (CEO). Lynch replaces Steve Ritchie, who stepped in after founder John Schnatter resigned in 2017. Year-to-date, PZZA is up 10%.
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Today will bring the S&P CoreLogic Case-Shiller home price index and consumer confidence data. Autodesk (ADSK), Hewlett Packard Enterprise (HPE), Momo (MOMO), and Veeva Systems (VEEV) will all step into the earnings confessional.
Trade Tailwinds Lift Asia; Europe Cheers Italy Election News
It was a mostly higher finish in Asia, as markets rode trade-related tailwinds from Wall Street. At the close, China's Shanghai Composite was up 1.4%, Japan's Nikkei gained 1%, and South Korea's Kospi tacked on 0.4%. On the flip side, Hong Kong's Hang Seng slipped 0.06% on sharp losses from China-based clothing manufacturer Shenzhou International.
European markets are mostly higher at midday amid reports Italy's 5-Star Movement and Democratic Party are negotiating a deal to avoid a snap election. Traders are also eyeing gross domestic product (GDP) data from Germany, which showed the country's economy shrank 0.1% in the second quarter, as expected, and reports China's State Council is considering easing restrictions on auto sales. Most recently, the German DAX is up 0.5%, the French CAC 40 is 0.3% higher, while London's FTSE 100 is down 0.08% as British American Tobacco drops.