China Trade Move Boosts Stock Futures

China will reduce import duties on cars and auto parts starting this summer

Managing Editor
May 22, 2018 at 9:17 AM
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Dow Jones Industrial Average (DJI) futures are pointed higher this morning, with the blue-chip index ready to vault further north of the key 25,000 level. Trade talks continue to boost optimism on Wall Street, after China announced it will slash it import tariffs on certain automobiles and car parts starting this summer. Elsewhere, the 10-year Treasury yield continues to hold above the 3% mark, while retailer Kohl's (KSS) is a big winner on the earnings front after its first-quarter results beat analyst estimates and the company raised its full-year adjusted profit forecast. 

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

  • The Fed event that could shock stocks tomorrow, according to Schaeffer's Senior V.P. of Research Todd Salamone.
  • 3 drug stocks that plummeted yesterday.
  • Urban Outfitters stock is pricing in a massive post-earnings move.
  • Plus, Micron announces stock buyback; Macy's gets an upgrade; and upbeat earnings from Advance Auto Parts.

Stock Futures Chart May 22

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 937,777 call contracts traded on Monday, compared to 507,509 put contracts. The single-session equity put/call ratio fell to 0.54, and the 21-day moving average slid to 0.61.
  2. Micron Technology, Inc. (NASDAQ:MU) stock is up 7.1% in electronic trading, after the firm announced a $10 billion stock buyback program, its largest ever. In addition, the chip company upwardly revised its current-quarter guidance, and said it's sealed a joint production deal with Intel (INTC) to produce 3D NAND flash memory chips. In response, at least seven brokerages have raised their price targets, including Stifel to $106 from $101. Micron shares have added 35% in 2018, recently bouncing off their 160-day moving average.
  3. Less than a week after an upbeat earnings report, Macy's Inc (NASDAQ:M) received an upgrade to "positive" from "neutral" at Susquehanna, which also raised its price target to $43 from $25. The analyst in coverage believes the retailer is set up to push same-store sales even higher. Macy's stock scored an annual high of $35.11 yesterday, and has gained 66% in the last six months. The retailer is up 0.8% in pre-market trading.
  4. Shares of Advance Auto Parts, Inc. (NYSE:AAP) are up 4.9% in electronic trading, after the auto parts retailer reported first-quarter earnings that beat analyst expectations. Revenue, on the other hand, arrived in line, while same-store sales declined 0.8% in the three-month period. On the charts, AAP shares bounced off their 160-day moving average in late April, and have gained 30% in the last six months. 
  5. For earnings, AutoZone (AZO), Container Store (TCS), Cracker Barrel (CBRL), Dycom (DY), Hewlett Packard (HPE), Intuit (INTU), TJX (TJX), Toll Brothers (TOL), and Red Robin Gourmet Burgers (RRGB) are lined up.

stock market news may 22

Europe Stocks Higher On China Tariff News

Asian markets finished mixed, as Brent crude futures pushed higher to linger near $80 per barrel. Japan's Nikkei retreated from yesterday's three-month high, ending 0.2% lower, while China's Shanghai Composite gained 0.02%. Markets in Hong Kong and South Korea were closed for holiday.

Stocks in Europe are modestly higher at midday. Automakers are catching a lift after China's Finance Ministry said it would cut taxes on imports, and cooling Italian bond yields are boosting sentiment. At last check, London's FTSE 100 is 0.2% higher, France's CAC 40 is up 0.1%, and Germany's DAX has picked up 0.6%.

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