Stock Futures Rocked as Trade War Rhetoric Ramps Up

China announced new tariffs on more than 100 U.S. products

Apr 4, 2018 at 9:13 AM
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Futures on the Dow Jones Industrial Average (DJI) are trading more than 480 points below fair value, as fears of a potential trade war with China ramp up after Beijing announced new tariffs on U.S. imports in response to Washington's threats of fresh duties on Chinese products. Included on China's list is a new levy for aircrafts, which has sent Dow stock Boeing (BA) down nearly 5% in pre-market trading. Tech stocks are also poised to resume their recent rout, with Nasdaq-100 Index (NDX) futures slumping ahead of the bell, while the S&P 500 Index (SPX) is also set to open sharply lower.

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

  • Schaeffer's Senior Quantitative Analyst Rocky White on the S&P technical signal not seen since 2014.
  • It could be time to buy the dip on this education stock.
  • The blockchain stock that's down 86% since March 23.
  • Plus, automakers slump on China tariff plans; Nvidia takes a trade-related hit; and private payrolls surge.

us stock index futures april 4

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 690,499 call contracts traded on Tuesday -- the fewest since Dec. 28 -- compared to 449,427 put contracts. The single-session equity put/call ratio fell to 0.65, and the 21-day moving average stayed at 0.64.
  2. Auto stocks are spiraling in electronic trading, after U.S.-imported automobiles were included on China's list of trade targets. Ford Motor Company (NYSE:F) is down nearly 3% ahead of the bell, while General Motors Company (NYSE:GM) is off almost 4%, and Tesla Inc (NASDAQ:TSLA) is bracing for a 5% drop out of the gate -- with the latter also reacting to a round of price-target cuts following Monday's first-quarter Model 3 production numbers.
  3. After popping yesterday on the back of a bullish brokerage note, shares of Nvidia Corporation (NASDAQ:NVDA) are down 3.5% in premarket trading. The chipmaker has significant exposure to China.
  4. Lennar Corporation (NYSE:LEN) reported adjusted first-quarter earnings of $1.11 per share on $2.98 billion in revenue -- better than analysts were expecting. As such, LEN stock is up 1.6% ahead of the bell.
  5. The ADP private sector report showed the U.S. added 241,000 jobs last month -- well above the consensus estimate for 205,000 new positions. Markit's PMI services index, factory orders, the ISM non-manufacturing index, and the weekly crude inventories update are also due today. Cleveland Fed President Loretta Mester is scheduled to speak. Acuity Brands (AYI), Fred's (FRED), and Ollie's Bargain Outlet (OLLI) will report earnings.

stock market news april 3

Trade Woes Weigh on Global Stocks

Stocks in Asia were mostly lower today, with equities reversing early gains amid ongoing trade tensions.  China's Shanghai Composite shed 0.2%, while Hong Kong's Hang Seng dropped 2.2%. South Korea's Kospi lost 1.4% as losses for tech and steel stocks offset a big day for automakers. Lastly, Japan's Nikkei bucked the regional trend and finished 0.1% higher, as Tokyo-listed car stocks joined their Korean counterparts in a rally.

Markets in Europe are lower at midday, with the tech sector in particular feeling the pinch as China and the U.S escalate their fight over tariffs. Germany's DAX is 1.1% lower at last check, pressured by a 4.9% drop in chip giant Siltronic, while the French CAC 40 is off 0.8%. London's FTSE 100 is 0.5% lower, dragged down by a 2% drop for advertising stock WPP after the company's board launched a probe into misconduct allegations against CEO Sir Martin Sorrell.


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