Dow Futures Slide as Trade Tensions Flare

Stocks are set to start the third quarter on a negative note, with Dow Jones Industrial Average (DJI) futures trading well below fair value. Trade concerns are the story once again, as reports circulate that the Trump administration is considering a bill that would allow the White House unilateral power to increase tariffs without Congress. Other reports also indicate the U.S. could be hit with new tariffs from the European Union. Investors will have economic data to digest, too, as Markit's purchasing managers manufacturing index (PMI), data on construction spending, and the Institute for Supply Management's (ISM) manufacturing survey are all set for release this morning.

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

• Fed stress tests sparked heavy trading on a bank ETF.
• How options traders doubled their money on this big bank bet.
• Plus, Tesla hits a major milestone; Wynn falls with casino stocks; and why VMWare stock is spiking ahead of the bell.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 838,924 call contracts traded on Friday, compared to 581,281 put contracts. The single-session equity put/call ratio rose to 0.69, while the 21-day moving average remained at 0.57.
2. Tesla Inc (NASDAQ:TSLA) shares are set to jump 6% at the open, after Reuters reported the company reached its goal of producing 5,000 Model 3 cars in the final week of the second quarter. TSLA shares closed last week at $342.95 after bouncing from their 320-day moving average, and call buying has remained unusually popular.
3. Wynn Resorts, Limited (NASDAQ:WYNN) stock is trading down 3.7% in electronic action, as June gambling revenue out of Macau increased less than expected. Revenue in the Chinese territory jumped 12.5% for the month, representing a 23rd consecutive monthly increase -- but falling short of estimates for 17% to 21% growth. WYNN stock settled at $167.34 on Friday, less than two points below its 200-day moving average, which it breached for the first time in over a year last Monday -- adding to its historically weak performance in the month of June.
4. Virtualization name VMware, Inc. (NYSE:VMW) is getting a boost before the open, trading up 10.7% on news Dell Technologies (DVMT) will buy its VMW tracking stock. The cash portion of the cash-and-stock deal will be provided by an $11 billion special one-time dividend paid out by VMW to shareholders. As of Friday's settlement at $146.97, VMW shares are up more than 71% year-over-year.
5. There are no notable earnings reports scheduled for today, but a few major economic reports are due out this holiday-shortened week.

Global Stock Markets Tumble; China Hit Hard

Asian markets closed lower today, as Chinese stocks resumed their sell-off. The Shanghai Composite slumped 2.5%, as blue chips tumbled ahead of a Friday trade deadline in which U.S. tariffs on $34 billion in Chinese products are set to take effect. This offset an in-line reading of the Caixin/Markit manufacturing PMI, though Beijing's official PMI fell slightly more than expected last month. Japan's Nikkei and South Korea's Kospi followed suit -- giving up 2.2% and 2.4%, respectively -- while Hong Kong's Hang Seng was closed for holiday.

European stocks are in the red at midday, as instability in German politics resurfaces. Over the weekend, Germany's interior minister threatened to resign over migration issues, putting Chancellor Angela Merkel's coalition government at risk. Most recently, the German DAX is down 0.5%. Elsewhere in the region, both the French CAC 40 and London's FTSE 100 are trading 0.8% lower.