Trade, Tech Weigh on Stock Futures

Trump tweeted about both NAFTA and Amazon over the weekend

Apr 2, 2018 at 9:09 AM
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Stock futures are signaling a negative start to the second quarter, after the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) snapped lengthy quarterly win streaks last Thursday, and the Nasdaq Composite (IXIC) logged its worst monthly loss in years. Today's focus will be back on trade and tech, after China instituted tariffs on 128 U.S. imports, and a weekend tweet from President Donald Trump tied support for NAFTA to border wall security. Trump also tweeted another swipe at Amazon (AMZN) -- saying it "must pay real [shipping] costs (and taxes) now!" -- while Tesla (TSLA) said the Autopilot function was activated just before last week's fatal Model X crash.

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

  • The silver ETF to buy in the second quarter. 
  • What to expect after Home Depot's worst quarter in years.
  • Why bulls should consider this social media stock.
  • Plus, Morgan Stanley scorches Fitbit; a sinking drug stock; and another bear note for Facebook.

us stock futures april 2

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 926,248 call contracts traded on Thursday, compared to 582,438 put contracts. The single-session equity put/call ratio fell to 0.63, and the 21-day moving average stayed at 0.64.
  2. Morgan Stanley downgraded Fitbit Inc (NYSE:FIT) to "underweight" from "equal weight," and lowered its price target to $4 from $5 -- a 21.6% discount to Thursday's close at $5.10 -- with the brokerage firm citing concern's over the tech firm's wearables business. FIT stock is down 3.9% in pre-market trading, but holding above its late-February record low.
  3. Shares of Alkermes Plc (NASDAQ:ALKS) have plunged 18.9% ahead of the bell, after the Food and Drug Administration (FDA) rejected the company's application to approve its experimental depression drug, citing a lack of evidence for its effectiveness. Today's projected price move could have the shares testing their late-November annual lows north of $46, and tumbling through their formerly supportive 200-day moving average.
  4. Facebook, Inc. (NASDAQ:FB) saw its price target slashed to $138 from $152 at Pivotal Research. The brokerage firm said it expects second-half revenue to fall at a quicker-than-projected pace, and reiterated its "sell" rating. Coming off its worst month in years, FB stock is set to open down 1.1%.
  5. Markit's purchasing managers manufacturing index (PMI) will kick off a busy day of economic activity. Wall Street will also see the Institute for Supply Management's (ISM) manufacturing survey and construction spending data. Minneapolis Fed President Neel Kashkari will speak after the close. Conn's (CONN) will report earnings.

stock market news april 2

Chinese Stocks Slip After PMI Data

Asian markets finished lower on the first trading day of the month, as investors eye newly announced Chinese tariffs on 128 U.S. imports set to begin today. China's Shanghai Composite finished 0.2% lower after the Caixin/Markit manufacturing PMI unexpectedly fell to a four-month low in March, countering a healthy rise in the official PMI released over the weekend. South Korea's Kospi ended 0.07% lower, pressured by a 4.6% loss from Hyundai Heavy Industries and a 1.8% slide from fellow shipbuilder Samsung Heavy Industries. Elsewhere, Japan's Nikkei fell by 0.3%, as the Bank of Japan's tankan survey showed a bigger-than-forecast decline in business sentiment last quarter.

Markets in Hong Kong were closed for the Easter holiday, as were most major European bourses.



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