The U.S. trade deficit rose to a nine-month high in October
Dow Jones Industrial Average (DJIA) futures are signaling a positive open for stocks ahead of a big day for economic data. While investors will continue to consider the ramifications of the Republican tax plan, they're digesting a rise to nine-month highs in the U.S. trade deficit in October. Markit's services purchasing managers index (PMI) and the Institute for Supply Management's (ISM) non-manufacturing index are both due, as well. Like the Dow and S&P 500 Index (SPX) -- which could both flirt with record highs again today -- futures on the Nasdaq-100 Index (NDX) are in the black, suggesting tech stocks could be poised to rebound after yesterday's sell-off.
Continue reading for more on today's market, including:
- Schaeffer's Senior V.P. of Research Todd Salamone presents a playbook for using VIX to time stocks.
- How options traders reacted to yesterday's biggest M&A news.
- The embattled healthcare stock pleasing short sellers.
- Plus, Toll Brothers crumbles; McDonald's menu news; and GM's big announcement.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.1 million call contracts traded on Monday, compared to 648,666 contracts. The single-session equity put/call ratio fell to 0.56, while the 21-day moving average remained at 0.61.
- Shares of homebuilder Toll Brothers Inc (NYSE:TOL) -- expected to be a big tax reform loser -- are set to fall 6.2%, after the company reported a top- and bottom-line miss for the fiscal fourth quarter. TOL shares hit a 12-year high of $51.08 just yesterday, sporting a one-year rise of almost 73%.
- McDonald's Corporation (NYSE:MCD) will be in focus today, thanks to news the company is revamping its menu with value options for $1, $2, and $3 beginning in January. In addition, Jefferies upgraded McDonald's stock to "buy," and hiked its price target by $50 to $200. MCD stock is up more than 1.4% in pre-market trading, meaning it'll be flirting with yesterday's record high of $173.48.
- Another high-profile name making waves this morning is General Motors Company (NYSE:GM), after the carmaker revealed GM Marketplace, a dashboard service that allows users to order food right from their GM vehicle. General Motors shares settled Monday at $43.05.
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AeroVironment (AVAV), AutoZone (AZO), Francesca's (FRAN), G-III Apparel (GIII), and Lands' End (LE) will step into the earnings confessional.
Asian stocks finished mostly lower, pressured by a continued decline in tech shares. In Japan, big drops for Nintendo and Sharp sent the Nikkei down 0.4%. Along similar lines, Hong Kong's Hang Seng slid 1%, following a 3.2% plunge in Chinese internet stock Tencent. China's Shanghai Composite also finished in negative territory, giving back 0.2% even as Caixin data showed a jump in service sector growth last month. South Korea's Kospi bucked the regional trend, though, adding 0.3% amid a rally in steel stocks.
European markets are mixed at midday, as the tech rout overshadows IHS Markit's upbeat composite purchasing managers index (PMI), which surged to a six-year high in November. Traders were also keeping a close eye on Brexit developments, with reports suggesting U.K. Prime Minister Theresa May will resume talks with European Union (EU) leaders later this week, after discussions fell through yesterday. At last check, the French CAC 40 was down 0.4% and the German DAX was off 0.2%. London's FTSE 100, however, is up 0.1%, as grocery stocks surge on a Goldman Sachs upgrade of Tesco.