Stock Futures Jump on Walmart Earnings, China Trade Optimism

The U.S. and China could resume trade talks later this month

Managing Editor
Aug 16, 2018 at 9:14 AM
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Dow Jones Industrial Average (DJI) futures are more than 250 points above fair value this morning, driven higher by Cisco Systems (CSCO) and Walmart (WMT). Both blue-chip stocks are sharply higher in pre-market trading after their respective second-quarter earnings reports. Meanwhile, U.S.-China relations took a more positive turn this morning, after reports that the two countries will meet in late August for another round of trade talks. In economic data, July housing starts grew by a slimmer-than-expected margin, while weekly jobless claims came in lower than forecast.

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

  • FCX call options hot as copper prices sink.
  • 2 stocks scored ambitious price targets.
  • Tesla stock nipped by SEC subpoenas.
  • Plus, Boeing stock gets a bull note; JC Penney's dismal earnings results; and Pfizer strikes a deal with BioNTech.

Stock Futures Chart Aug 16

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.10 million call contracts traded on Wednesday, compared to 728,201 put contracts. The single-session equity put/call ratio remained at 0.66, and the 21-day moving average stayed at 0.63.
  2. Boeing Co (NYSE:BA) stock is up 2.2% in electronic trading, after UBS assumed coverage on the aerospace giant with a "buy" rating. The brokerage sees more than 50% upside for the stock, based on its new price target of $515. Boeing shares have pulled back from their June 7 record high at $374.48, but found support yesterday at their 200-day moving average.
  3. JC Penney Company Inc (NYSE:JCP) stock is down 19% ahead of the bell, after the retailer reported second-quarter earnings and revenue below analysts' forecasts, and slashed its full-year guidance for 2018. JC Penney stock is set to open at a fresh record low below $2 per share.
  4. Shares of Pfizer Inc. (NYSE:PFE) are up 0.4% in electronic trading, after the drugmaker secured a deal with private German biotech name BioNTech to continue developing flu vaccines. Pfizer stock is fresh off a 16-year high of $41.64 on Aug. 8, and the shares are heading toward their fourth straight weekly win.
  5. On the economic front, today will bring the Philadelphia Fed business outlook survey. Earnings from Applied Materials (AMAT), Nordstrom (JWN), and Nvidia (NVDA) will be released.

pre-market stock movers aug 16

Asian Markets Lifted By Trade Developments; Oil Stabilizes European Stocks

Stocks in Asia finished the day lower on weakness in the energy sector, though reports of U.S.-China trade talks helped benchmarks pare some losses. Japan's Nikkei clawed back from its steep midday plunge to finish 0.06% lower, while Hong Kong's Hang Seng shed 0.8% on the back of disappointing earnings from Chinese internet firm Tencent. China's Shanghai Composite and South Korea's Kospi fell 0.6% and 0.8%, respectively. 

European markets are higher in afternoon trading, rebounding from yesterday's sizable losses as oil prices stabilize and mining stocks rally. At last glance, London's FTSE 100 is up 0.7% -- and set to snap its five-session losing streak -- on stronger-than-forecast July retail sales. Elsewhere, Germany's DAX is 0.3% higher, and France's CAC 40 is sporting a 0.5% gain.

 

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