Stock Futures Vault Higher Amid Progressing Trade Talks

A renegotiated NAFTA deal between the U.S. and Mexico could be imminent

Managing Editor
Aug 27, 2018 at 9:11 AM
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Dow Jones Industrial Average (DJI) futures are signaling a positive start to the week, trading more than 100 points above fair value, as trade talks between the U.S. and Mexico progressed. On Sunday, Mexican Economy Minister Ildefonso Guajardo disclosed the two countries were close to a renegotiation of the North American Free Trade Agreement (NAFTA). The countries could reportedly make a formal announcement today. Both S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are higher as well, with the indexes poised to explore fresh record highs. Elsewhere, Tesla (TSLA) CEO Elon Musk found the spotlight once more, tweeting that he's abandoning plans to take the company private.

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

  • 3 weed stocks lit up by option bulls.
  • Time to bet on a rally from TD Ameritrade stock.
  • Geron options volume soared as traders played detective.
  • Plus, United's planned switch; Pfizer cheers upbeat drug data; and one analyst pumps the brakes on Chipotle stock.

Stock Futures Chart Aug 27

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.02 million call contracts traded on Friday, compared to 579,479 put contracts. The single-session equity put/call ratio fell to 0.57, and the 21-day moving average slipped to 0.63.
  2. United Continental Holdings Inc (NYSE:UAL) stock is up 0.5% in electronic trading, after the company announced it is transferring its stock listing to the Nasdaq from the New York Stock Exchange (NYSE), starting Sept. 7. CEO Gerry Laderman explained the move is an effort to start controlling costs more effectively. UAL shares gapped higher in July following an upbeat earnings report, and the airline stock soared to a record high of $86.60 on Aug. 21.
  3. Pfizer Inc. (NYSE:PFE) stock is up 0.9% ahead of the bell, after Tafamidis, the company's drug for a rare heart disease, met its main goals in a late-stage study. Pfizer stock hit a 17-year high of $42.77 on Aug. 20, and recently made headlines for its team-up with Exact Sciences (EXAS). 
  4. Shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) are down 1.6% in electronic trading, after receiving a downgrade to "underperform" from "neutral" at Wedbush. While also trimming its price target to $445 from $450, the analyst in coverage sees increased risk in the burrito chain's near-term same-store sales numbers. Despite more reports of food poisoning, CMG stock has added 21% in the past three months, culminating in a two-year high of $530.49 on Aug. 16. 
  5. The week will start with the Chicago Fed National Activity Index and the Dallas Fed manufacturing survey. No notable earnings are expected.

stock market news august 27

Asian Markets Surge on Chinese Central Bank Moves

Stocks in Asia started the week off with huge gains, after the People's Bank of China initiated a "counter-cyclical factor" to contain the yuan's decline against the U.S. dollar. China's Shanghai Composite closed 1.9% higher, Hong Kong's Hang Seng gained 2.2%, and South Korea's Kospi picked up 0.3%. Meanwhile, gains out of the metal and steel sector pushed Japan's Nikkei up 0.9%.

European stocks are modestly higher at midday, though volume is low with markets in the U.K. closed for holiday. At last glance, Germany's DAX is up 0.5%, after Ifo's business climate index came in at a stronger-than-expected 103.8 in August, and France's CAC 40 is 0.4% higher.


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