The Dow is set to open up 100 points
Dow Jones Industrial Average (DJI) futures are trading more than 100 points above fair value, as stocks try to build off their best day in years. With trade war concerns on the back burner at the moment, the tech sector could again lead the charge following blowout earnings from software company Red Hat (RHT) -- even with Facebook (FB) set to erase Monday's modest gain. Investors will also focus on today's economic data. Namely, the S&P CoreLogic Case-Shiller home price index rose a seasonally adjusted 0.8% last month, slightly more than economists were expecting, while a report on consumer confidence is due out later this morning.
Continue reading for more on today's market, including:
- Schaeffer's Senior V.P. of Research Todd Salamone explains the short-term risk for bulls.
- Call traders pounced on this gun stock.
- Alibaba speculators are bullish despite tariff uncertainty.
- Plus, McCormick ready to burn short sellers; Red Hat eyes new highs; and the blockchain stock getting crushed.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 959,031 call contracts traded on Monday, compared to 608,120 put contracts. The single-session equity put/call ratio fell to 0.63, and the 21-day moving average edged up 0.64.
- McCormick & Co (NYSE:MKC) is up almost 4% before the open, thanks to the spice company's better-than-expected quarterly earnings report and upbeat full-year outlook. MKC stock, which had been enjoying support from the 50-day moving average, could now test its record high of $111.44 from earlier this month -- and short sellers may be feeling the need to cover.
- Wall Street is cheering top- and bottom-line beats from Red Hat Inc (NYSE:RHT). The stock is trading up 7% in electronic action, and several more bull notes have come through. This pre-market move would have RHT shares trading at a record high, after closing last night at $153.09. They've already added 84.5% year-over-year.
- Longfin Corp (NASDAQ:LFIN) is set to sell off again, after a Citron Research tweet yesterday sent the blockchain stock spiraling 16.6% to close at $59.28. The notorious short seller accused the lending company of fraud, the same day it took down this e-tail stock.
- Atlanta Fed President Raphael Bostic is slated to give a speech. Celsion (CLSN), Francesca's (FRAN), RH (RH), and Lululemon Athletica (LULU) will step into the earnings confessional.
Global Stock Markets Rise
Asian markets finished higher today, as China and the U.S. moved forward in trade negotiations. China's Shanghai Composite added 1%, while Hong Kong's Hang Seng rose 0.8% on the strength of technology stocks. South Korea's Kospi gained 0.6%, boosted by a 5.3% rally for Posco and a 3.6% rise in Hyundai Steel. Elsewhere, oil and industrial stocks rose in Japan, which combined with a weakening yen to send the Nikkei up 2.7%.
Stocks in Europe are higher at midday, mirroring the sigh of relief felt around the world amid easing trade war tensions. The French CAC 40 is up 1.3% at last check, thanks to a nearly 7% boost from food retailer Casino Guichard, which will team up with Amazon's Prime Now service in Paris later this year. London's FTSE 100 is up 1.9%, led by a 6.4% pop for pharmaceutical giant GlaxoSmithKline after the drug giant agreed to buy Novartis' stake in their joint healthcare venture for $13 billion. Lastly, the German DAX sports a 1.7% lead as Deutsche Bank reportedly considers a CEO shakeup, sending the bank stock up 1.3%.