The Fed will kick off its two-day meeting tomorrow
After markets made a frenzied push higher on Friday, stock futures appear unable to carry over the momentum into the new week. Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) futures are all signaling negative opens, as focus shifts back to the U.S.-China trade talks ahead of the Dec. 15 deadline for the Trump administration to hike tariffs on Chinese goods. Earlier this morning, Chinese officials expressed hope to make a deal "as soon as possible," which followed disappointing export data out of Beijing. Elsewhere, investors are also gearing up for the Fed meeting that kicks off tomorrow, with Fed Chair Jerome Powell set to speak on Wednesday.
Continue reading for more on today's market, including:
- The penny stock that's been red-hot in December.
- Options bears are busy ahead of SFIX earnings report.
- Plus, a big double upgrade for Qorvo; PG&E reaches settlement; Merck buys ArQule for $2.7 billion.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.2 million call contracts traded on Friday, compared to 642,603 put contracts. The single-session equity put/call ratio slipped to 0.53, while the 21-day moving average stayed at 0.59.
- Qorvo Inc (NASDAQ:QRVO) stock is up 2.3% in electronic trading, after BofA-Merrill Lynch double-upgraded the Apple supplier to "buy" from "underpeform." The analyst in coverage anticipates a huge surge in demand for chips as 5G technology becomes more prevalent. QRVO nabbed an 18-year high of $107.57 on Friday, and is up over 75% in 2019.
- PG&E Corporation (NYSE:PCG) stock is up 20.7% ahead of the bell, after the utility company reached a settlement with the 2017 and 2018 California wildfire victims for $13.5 billion. PCG briefly explored double-digit territory last week, and should today's result's hold, could close a mid-October bear gap.
- The shares of Merck & Co., Inc. (NYSE:MRK) are up 0.5% in electronic trading, after the drugmaker acquired cancer drug developer ArQule (ARQL) for $2.7 billion, or $20 per AQRL share. MRK is also fresh off a 19-year high of $89.23 from Friday, with its 200-day moving average emerging as support the last three months.
- Today's earnings will feature Adobe (ADBE), Casey's General (CASY), and Toll Brothers (TOLL). Also up are earnings from AutoZone (AZO), Conn's (CONN), Dave & Buster's (PLAY), Designer Brands (DBI), GameStop (GME), HD Supply (HDS), and Ollie's Bargain Outlet (OLLI).
Overseas Markets Struggling For Direction
There wasn’t a lot of movement in Asian equities. Most notable may have been the Nikkei’s 0.3% rise, after gross domestic product (GDP) data out of Japan topped expectations. The Shanghai Composite in China also grabbed a win, finishing up 0.08%, as traders digested a drop in Chinese exports. Meanwhile, South Korea’s Kospi managed a 0.3% win, and Hong Kong’s Hang Seng settled with a marginal loss.
Stocks in Europe are mostly lower halfway through the day. One name generating headlines is oil and gas stock Tullow Oil, as the shares sink after the company said it was suspending its dividend. Data out of Germany is also in focus, with exports rising in October. At last check, the FTSE 100 is down 0.07% in London, Germany’s DAX is off 0.2%, and France’s CAC 40 has dropped 0.5%.