Deputy negotiators from both countries will meet today
It's poised to be a lower start on Wall Street today, with futures on the Dow Jones Industrial Average (DJI) trading just below fair value. This comes after a divided Fed sent markets to a mixed finish on Wednesday, while today, traders are eyeing a round of U.S.-China trade talks, with deputy negotiators from both countries meeting face-to-face in Washington. Economic data is also in focus this morning, with weekly jobless claims rising less than expected last week, and existing home sales data due out at 10 a.m. ET.
Continue reading for more on today's market, including:
- New Chewy stock low could draw more bear notes.
- 10 post-parabola TLT levels to watch, courtesy of founder and CEO Bernie Schaeffer.
- Baker Hughes bulls bet on a strong Friday finish.
- Plus, KeyBanc downgrades Akamai; Bloom Energy hit with a bear note; and a stock offering sinks Provention Bio.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 828,372 call contracts traded on Wednesday, compared to 583,584 put contracts. The single-session equity put/call ratio jumped to 0.70, while the 21-day moving average remained at 0.64.
- KeyBanc downgraded Akamai Technologies, Inc. (NASDAQ:AKAM) to "sector weight" from "overweight," saying content delivery growth for 2020 is already priced into the tech stock. AKAM shares are down 2.2% in electronic trading, but could find support near their 40-day moving average, which has helped usher the equity to a 49% year-to-date lead through last night's close at $90.94.
- Bloom Energy Corp (NYSE:BE) stock is 1.2% higher ahead of the bell, brushing off a price-target cut to $12 from $18 at J.P. Morgan Securities. The bear note comes after the fuel cell specialist took a nosedive earlier this week on a scathing short seller note. BE stock hit a record low of $3.07 yesterday, before closing at $3.34.
- Provention Bio Inc (NASDAQ:PRVB) stock is bracing for an 11.5% drop out of the gate, after the diabetes drugmaker priced a stock offering at $8 per share -- a roughly 17% discount to last night's close at $9.66. It's still been a monster year for the equity, which has surged 445.8% so far, due mostly to a mid-June bull gap.
- The Fed's balance sheet will be released after the close. United Natural Foods (UNFI) will report earnings.
Global Stocks React to Fed Rate Cut
Yesterday's Federal Reserve interest rate cut in the U.S. led most Asian markets higher. South Korea's Kospi and the Shanghai Composite in China both managed a 0.5% win. The Bank of Japan also issued its latest policy decision, holding its interest rate targets steady on Thursday in a move expected by analysts. The Nikkei in Japan added 0.4% as a result, while Hong Kong’s Hang Seng lost 1.1%.
The accommodative U.S. Fed has stocks in Europe trading higher at midday. The London FTSE 100 is 0.6% higher after the Bank of England held its interest rates steady, noting that Brexit turmoil could lead to an extended period of low rates. Meanwhile, the German DAX is up 0.3% and the French CAC 40 has tacked on 0.5%.