The White House has reportedly excluded hundreds of Chinese goods from tariffs
Futures on the Dow Jones Industrial Average (DJI) are modestly above fair value this morning, with the blue-chip index poised to bounce back after Thursday's bearish reversal. Wall Street is eyeing the latest U.S.-China trade news, with Politico reporting President Donald Trump is excluding hundreds of Chinese goods from tariffs, including dog leashes and Christmas tree lights. Plus, deputy negotiators from both countries will hold a second day of talks in Washington, ahead of high-level discussions expected in early October. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are higher, too, in what's poised to be an up day for the U.S. stock market.
Continue reading for more on today's market, including:
- A six-figure bearish bet on gold.
- Oil stock rally triggers technical sell signal.
- Plus, Evercore ISI issues a dire Netflix warning; an oil stock booming on buyout buzz; and Roku sinks on scathing Pivotal Research note.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 996,626 call contracts traded on Thursday, compared to 662,944 put contracts. The single-session equity put/call ratio fell to 0.67 while the 21-day moving average remained at 0.64.
- Netflix Inc (NASDAQ:NFLX) stock is down 1.3% in electronic trading, after Evercore ISI warned the streaming issue could miss third-quarter international subscriber expectations, based on recent data checks. NFLX stock has been trending lower since its mid-July highs north of $384, and closed last night at $286.60
- McDermott International Inc (NYSE:MDR) is eyeing a 75% pop out of the gate, on news the oilfield services firm is exploring options for its technology business, Lummus Technology, and has received buyout offers that value the division at roughly $2.5 billion. The penny stock plunged to 16-year low of $1.44 on Wednesday on reports the company had hired a turnaround firm, and settled last night at $1.58.
- Pivotal Research initiated coverage on Roku Inc (NASDAQ:ROKU) with a "sell" rating and a $60 price target -- a 55% discount to last night's close at $133.76. The brokerage firm said increasing streaming competition will send the cost of over-the-top media devices to zero. ROKU stock is down 5.5% ahead of the bell, set to surrender long-term support atop its 50-day moving average.
- New York Fed President John Williams, Boston Fed President Eric Rosengren, and Dallas Fed President Robert Kaplan will speak. The onslaught of Fed speeches will continue next week, while the latest gross domestic product (GDP) reading will also draw attention.
Tokyo Stocks Climbed After Inflation Data
Stocks in Asia finished tentatively higher on Friday as U.S.-China trade fears began to resurface. China's Shanghai Composite added 0.2% after the People's Bank of China (PBoC) cut its short-term loan prime rate (LPR) to 4.2%, versus last month's 4.25%. South Korea's Kospi, meanwhile, tacked on 0.5%, while the Nikkei in Japan managed a 0.2% win amid cooling consumer inflation data. Hong Kong's Hang Seng, on the other hand, fell 0.1% as anti-government protests entered their 16th consecutive weekend.
Stocks in Europe are tentatively higher at midday as traders weigh fresh global stimulus efforts against revived trade tensions. The French CAC 40 is up 0.3%, led by IT giant Alten, which is soaring on a post-earnings upgrade from SocGen. Elsewhere, the German DAX is hovering above breakeven with a 0.04% gain, while London's FTSE 100 is 0.2% higher, with a Brexit-related Supreme Court ruling expected sometime next week.