Stock Futures Fall on Trade Anxiety

Futures on the Dow Jones Industrial Average (DJI) are pointing to another down day on Wall Street. Cautious trading looks set to continue ahead of U.S.-China trade talks this week, with S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures also pointing to a sharp pullback at the open, after the Trump administration blacklisted more Chinese companies on Monday. Investors are taking in the producer price index (PPI) for September, too, which fell unexpectedly during the month, pointing to soft underlying inflation -- likely fueling more expectations for an interest rate cut at the Fed's October meeting.

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

• Schaeffer's Senior V.P. of Research Todd Salamone breaks down the data pointing to a potential VIX pop.
• How bears have been betting on more losses for GM stock.
• 2 casino stocks seeing heavy options trading.
• Plus, more Target buzz; Microsoft gets a bull note; and Domino's earnings reaction.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw 543,772 call contracts traded on Monday, compared to 510,087 put contracts. The single-session equity put/call ratio jumped to 0.94, while the 21-day moving average edged up to 0.68.
2. Target Corporation (NYSE:TGT) is in focus this morning. Not only will the company be powering the new Toys 'R' Us website, but it also received a fresh "strong buy" rating from Raymond James. This comes after Cowen named the retail stock a top pick a few weeks ago.
3. Microsoft Corporation (NASDAQ:MSFT) also received bullish analyst attention, with Jefferies last evening upgrading its view to "buy" and putting its price target at $160, up $67 from its previous price target. MSFT shares have been trending lower since their Sept. 19 peak, and closed last night below their 40-day moving average.
4. For earnings, traders are digesting the quarterly report from Domino's Pizza, Inc. (NYSE:DPZ). The company's same-store sales for the third quarter fell short of investors' expectations, sending DPZ shares almost 6% lower before the open. Long calls had been popular across the major exchanges, so the earnings pullback could be painful for a number of speculators.
5. Fed Chair Jerome Powell, Chicago Fed President Charles Evans, and Minnesota Fed President Neel Kashkari will speak today. There will be some action on the earnings front, too, with DPZ's earnings reaction.

Samsung Electronics Fuels Big Gains for South Korea's Kospi

Asian markets closed higher today, ahead of this week's trade talks between the U.S. and China. South Korea's Kospi outperformed its regional peers, adding 1.2%, as index heavyweight Samsung Electronics rallied on a well-received profit forecast. This boosted Tokyo chip stocks, which helped propel Japan's Nikkei to a 1% gain. Elsewhere, China's Shanghai Composite returned from a week-long hiatus to add 0.3%, while Hong Kong's Hang Seng reopened from its long weekend with a 0.3% win, as well.

European stocks are sharply lower at midday, after the U.S. blacklisted more Chinese companies -- stoking anxiety about a possible trade deal between the two countries. At last check, the Frankfurt DAX and the French CAC 40 are each down 1% -- the latter falling even as data showed German industrial production unexpectedly rose in August. Meanwhile, U.K.'s FTSE 100 is off 0.3%, as shares of the London Stock Exchange tumble on news Hong Kong Exchanges and Clearing withdrew its $39 billion bid for the financial firm.