U.S-China trade relations continue to fuel volatile action on Wall Street
The U.S. stock market looks set for another day of volatile trading, with futures on the Dow Jones Industrial Average (DJI) up triple digits at last check. Investor sentiment appears to be getting a boost from the Trump administration, which attempted over the weekend to ease trade war fears that sent stocks spiraling last Friday. While Treasury Secretary Steve Mnuchin on CBS' "Face the Nation" yesterday said he doesn't "expect there will be a trade war" between the U.S. and China, President Donald Trump wrote on Twitter that he sees a "Great future for both countries!" -- though more recently, he tweeted about "STUPID TRADE - going on for years!"
Continue reading for more on today's market, including:
- Merger buzz boosted bearish betting on Chicago Bridge & Iron stock.
- This beverage stock is flashing "buy."
- Insider trading accusations buoyed this blockchain stock.
- Plus, a bold bull note for GM; an $8.7 billion healthcare buyout; and Russian ETFs sink on newly imposed sanctions.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 766,021 call contracts traded on Friday, compared to 585,394 put contracts. The single-session equity put/call ratio jumped to 0.76, and the 21-day moving average rose to 0.66.
- Morgan Stanley upgraded General Motors Company (NYSE:GM) to "overweight" from "equal weight," and boosted its price target to $48 from $45 -- territory not seen in the stock's post-bankruptcy era -- since saying it's among the cheapest among global auto names. GM shares are up 2.2% ahead of the bell, and could make a run at their recently resistant 320-day moving average in today's trading.
- After receiving a hefty payout by selling its stake in a joint venture with GlaxoSmithKline (GSK), Swiss drugmaker Novartis AG (NYSE:NVS) said it would buy U.S.-based gene therapy firm AveXis Inc (NASDAQ:AVXS) in an all-cash deal valued at $8.7 billion, or roughly $218 per AVXS share. NVS stock is up 0.8% in electronic trading, while AVXS has surged 81.8%.
- Exchange-traded funds (ETFs) with exposure to Russia are spiraling in pre-market trading, after a new round of U.S. sanctions was announced last Friday -- with Russian President Vladimir Putin's son-in-law among those targeted. Shares of the VanEck Vectors Russia ETF (RSX) were last seen down 8.5%, after closing last week at $22.37. While RSX could breach its formerly supportive 200-day trendline today, it may find a foothold near the round $20 mark, which served as a floor last summer.
- While first-quarter earnings season picks up in earnest later this week, Argan (AGX) and Sigma Designs (SIGM) will report today.
Chinese Stocks Closed Higher Ahead of Key Xi Speech
Stocks in Asia kicked off the week on a high note today, shrugging off trade war concerns between the U.S. and China. China's Shanghai Composite finished 0.3% higher as investors await Chinese President Xi Jinping's speech tomorrow at Boao Forum, where he's expected to announce market reforms. Japan's Nikkei gained 0.5% amid a softening yen, while South Korea's Kospi added 0.6% thanks to a 1.7% rise from Samsung Electronics. Hong Kong's Hang Seng tacked on 1.3% on the strength of rebounding tech stocks, shaking off a 50.4% nose-dive from Moscow-headquartered aluminum producer Rusal amid fresh U.S. sanctions against Russia.
Markets in Europe are mostly higher at midday. The French CAC 40 has gained 0.2% and Germany's DAX is up 0.5% at last check, thanks to a 2.4% bump from Deutsche Bank, which appointed Christian Sewing as its new chief executive officer. London's FTSE 100 is down 0.1% as commodity giant Glencore, a stakeholder in Rusal, drops 4.5%.