Trump delayed a tariff hike on Chinese goods to mid-October
Dow Jones Industrial Average (DJI) futures are above fair value this morning, after President Donald Trump delayed an upcoming tariff hike on Chinese goods to Oct. 15 from Oct. 1, citing the People's Republic of China's 70th anniversary as the catalyst for his "gesture of good will." The European Central Bank's (ECB) decision to cut its key interest rate and initiate quantitative easing with a bond-buying program is only fanning the bullish flames, while traders are also eyeing the latest consumer price index (CPI), which edged up 0.1% in August, as expected. Another gain today would mark a seventh straight for the Dow, a winning streak not seen since May 2018.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.30 million call contracts traded on Wednesday -- the most since March 15 -- compared to 705,249 put contracts. The single-session equity put/call ratio sank to 0.54, while the 21-day moving average slipped to 0.67.
- Hertz Global Holdings Inc (NYSE:HTZ) stock is up 2.5% in electronic trading, after a Securities and Exchange Commission (SEC) filing revealed activist investor Carl Icahn boosted his stake in the car rental name to 30.1% from 29.49%. HTZ stock has surged 28% since its Aug. 28 bottom at $11.24, settling last night at $14.39.
- The shares of Aurora Cannabis Inc (NYSE:ACB) are down 10% in pre-market trading, after the pot producer reported lower-than-expected quarterly revenue, and said it won't be profitable until fiscal 2020, compared to a previous estimate for its fiscal 2019 fourth quarter. ACB stock's rally off its late-August lows near $5.40 stalled yesterday near its 50-day moving average, with the shares closing at $6.49.
- Fellow weed stock Tilray Inc (NASDAQ:TLRY) is also lower ahead of the bell, poised to open down 1.7%. The company filed for a mixed-shelf offering of Class 2 common stock of up to $400 million, per an SEC filing. TLRY's attempt to rise off its early September bottom just above $25 has been contained by its 20-day moving average, with the stock settling Wednesday at $30.71.
- The Fed's balance sheet, weekly jobless claims, and the Treasury budget are due. Broadcom (AVGO), Duluth Holdings (DLTH), and Kroger (KR) will report earnings.
ECB Moves Boost European Stocks
Stocks in Asia ended mostly higher today, as President Donald Trump's tweet on tariff delays helped buoy global trade sentiment. The Shanghai Composite in China and the Nikkei in Japan each rose 0.8%, with the latter getting a lift from Yahoo Japan, which surged after announcing its plan to buy e-tail name Zozo. Hong Kong's Hang Seng inched 0.3% lower, and South Korea's Kospi was closed for holiday.
A brand new stimulus package from the ECB has lifted major European markets at midday, with policymakers announcing a sizable new bond-buying program and an interest rate cut that arrived in line with expectations. The French CAC 40 is 0.5% higher after oil issue Rubis reported a major earnings beat, while the German DAX has tacked on 0.6%. London’s FTSE 100 is eking out a 0.2% win, as fears of potential economic and political turmoil thanks to a no-deal Brexit tamp further gains.