Stock Futures Higher Amid Easing Trade Tensions

The Nasdaq and S&P are set to resume their quest for record highs

Managing Editor
Aug 28, 2018 at 9:14 AM
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Dow Jones Industrial Average (DJI) futures are trading above fair value this morning, as investors continue to toast yesterday's U.S.-Mexico trade deal, which will overhaul the North American Free Trade Agreement (NAFTA). Next up is the pursuit of a similar deal with fellow NAFTA member Canada, with Treasury Secretary Steven Mnuchin telling CNBC he is hopeful a deal with get done, but is prepared to move forward with Mexico. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are cautiously higher as well, with both indexes looking to resume their quest for record highs.

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

  • Keep a wary eye on VIX futures traders, warns Schaeffer's Senior V.P. of Research Todd Salamone.
  • Ford and GM bulls emerged after the Mexico trade agreement.
  • The weed stock swarmed by options traders before earnings.
  • Plus, Twitter cracks down on suspicious accounts; Campbell Soup could be ditching sale efforts; and Tiffany cheers a beat-and-raise.

Stock Futures Chart Aug 28

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.20 million call contracts traded on Monday, compared to 632,416 put contracts. The single-session equity put/call ratio fell to 0.53 -- the lowest since June -- and the 21-day moving average remained at 0.63.
  2. Twitter Inc (NYSE:TWTR) stock is up 0.6% in electronic trading, after the social media entity suspended 770 accounts for coordinated manipulation and policy violations. The company has started to make a conscious effort in the past year to crack down on suspicious accounts. TWTR stock scored a record high of $47.79 on June 15, but gapped lower in late July following a poorly received earnings report. Since then, the shares have bounced into the $36 region. 
  3. Campbell Soup Company (NYSE:CPB) stock is down 4.1% ahead of the bell, amid reports the company will announce it has no plans to sell itself. Activist Daniel Loeb was pushing for a sale of the food processing name. CPB rallied hard off its early June lows above $32, but has still shed 15% in 2018. 
  4. Shares of Tiffany & Co. (NYSE:TIF) are up 6.7% in electronic trading, after the high-end retailer reported second-quarter earnings and revenue that exceeded analyst expectations. The company also upped its full-year guidance for 2018. Tiffany stock has pulled back since touching a record high of $141.64 in late July, but could test those levels once again today.
  5. Today will be a busy day on the economic front, with data on international trade, retail and wholesales inventories, consumer confidence, the Richmond Fed manufacturing survey, and the S&P CoreLogic Case-Shiller housing price index. For earnings, Best Buy (BBY), Box Inc (BOX), Hain Celestial (HAIN), H & R Block (HRB), Lannett (LCI), Shoe Carnival (SCVL), and Tilray (TLRY) will report.

stock market news aug 28

Global Trade Optimism Lifts Asian, European Markets

Stocks in Asia closed mostly higher, taking their cues from Wall Street after Monday's U.S.-Mexico trade deal. Japan's Nikkei briefly surged past 23,000 for the first time since mid-June, and closed up 0.06%. Hong Kong's Hang Seng gained 0.3% on the back of gains in tech and energy, South Korea's Kospi picked up 0.2%, and China's Shanghai Composite lagged the group with a 0.1% loss.

Optimism over an improving global trade outlook sent resource stocks soaring, with the mining sector pushing European markets higher at midday. London's FTSE 100 resumed trading after a long weekend on a positive note, and alongside France's CAC 40, is up 0.3% at midday, while Germany's DAX is trading up 0.1%, at last check. 

 

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