A report from the Wall Street Journal said China may have invited the U.S. to continue trade negotiations in Beijing
Stock futures are inching higher this morning, with the Dow signaling a roughly 19-point gain at the open after a new Wall Street Journal report suggested that China invited U.S. officials to its capital to continue trade negotiations during a phone call last week. This follows yesterday's reports that the phase one trade deal may not be reached until next year. Meanwhile, investors are poring over U.S. weekly jobless claims, which were unchanged for the week at a five-month high. Wall Street is also anticipating existing home sales data, which will pop up later today.
Continue reading for more on today's market, including:
- Options bulls just called the bottom on this sinking pot stock.
- This brokerage stock's recent rally may be over, says signal.
- Plus, Macy's tanks after earnings; Canopy stock soars on weed legalization hopes; Charles Schwab makes bid for TD Ameritrade.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.13 million call contracts traded on Wednesday, compared to 721,353 put contracts. The single-session equity put/call ratio moved up to 0.64, while the 21-day moving average came in at 0.59.
- Macy's Inc (NYSE:M) has fallen 4.1% in electronic trading after the retailer reported earnings that exceeded analysts' estimates, but worse-than-expected same-store sales. The firm also slashed its full-year sales and profit outlook, citing less traffic at malls, and the warmer weather this year.
- Canopy Growth Corp (NYSE:CGC), along with the rest of the pot sector, is getting a pre-market boost today after the House Judiciary Committee approved a bill aimed at federal marijuana legalization. Fresh off its post-earnings slide, CGC stock is set to open 9.9% higher.
- Reports that Charles Schwab Corporation (NYSE:SCHW) is poised to buy rival TD Ameritrade Holding Corp. (NASDAQ:AMTD) has both discount brokerage stocks soaring this morning. According to a report from CNBC, the deal would create a company with $5 trillion in combined assets. SCHW is up 12.3% ahead of the bell, while AMTD is up 24.5%.
- The Philadelphia Fed business outlook survey and existing home sales will be in focus today. BJ's Wholesale Club (BJ), Gap (GPS), Intuit (INTU), Nordstrom (JWN), Pure Storage (PSTG), Ross Stores (ROST), Seadrill (SDRL), and Splunk (SPLK) will unveil earnings.
Tariff Tensions Knock Asian, European Markets Lower
Asian markets ended lower across the board today, with reports indicating that the U.S. and China remain at odds over the tariff rollbacks that have become central to a phase one trade agreement. Tensions ramped up after both chambers of U.S. Congress on Wednesday passed, with near-unanimous support, the Hong Kong Human Rights and Democracy Act -- a piece of pro-human rights legislation that has already been condemned by the Chinese Foreign Ministry. By the close, Hong Kong's Hang Seng fell 1.6%, South Korea's Kospi lost 1.4%, Japan's Nikkei gave up 0.5% as the yen garnered a safe-haven bid, and China's Shanghai Composite backpedaled 0.3%.
As geopolitical tensions take the spotlight, stocks in Europe are following Asia lower at midday. Earnings are also in focus, including big post-report sell-offs for British courier service Royal Mail and German industrial giant Thyssenkrupp. At last look, London's FTSE 100 is off 0.7%, the French CAC 40 is 0.2% lower, and the German DAX is down 0.1%.