U.S.-China Trade Woes Weigh on Stock Futures

The S&P 500 could be at risk of snapping its win streak

Sep 17, 2018 at 9:07 AM
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Futures on the Dow Jones Industrial Average (DJI) are trading modestly below fair value, as traders await more details on the Trump administration's plans to impose tariffs on another $200 billion in Chinese goods. Over the weekend, China reportedly said it may not participate in trade negotiations if the new round of taxes is applied. Meanwhile, President Donald Trump this morning tweeted, "If countries will not make fair deals with us, they will be 'Tariffed!'" The S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are signaling lower opens, as well, with the former fresh off a five-day win streak.

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

us stock index futures fair value on sept 17

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.08 million call contracts traded on Friday, compared to 624,258 put contracts. The single-session equity put/call ratio rose to 0.58, and the 21-day moving average stayed at 0.60.
  2. Tyson Foods, Inc. (NYSE:TSN) said CEO Tom Hayes is leaving after two years of leading the meat producer, and will be replaced by insider Noel White on Sept. 30. TSN stock is down 2.2% in electronic trading, and could test its 40-day moving average today -- a trendline that's served as both support and resistance this year.
  3. The Food and Drug Administration (FDA) last Friday approved Ajovy, a migraine treatment developed by Teva Pharmaceutical Industries Ltd (NYSE:TEVA). This is just the latest regulatory win for the drugmaker, and has TEVA stock set to open up 7.1%.
  4. Stephens upgraded American Express Company (NYSE:AXP) to "overweight" from "equal weight," and boosted its price target on the Dow stock to $131 from $109 -- a nearly 20% premium to last Friday's close at $109.56. AXP shares are 0.6% higher in pre-market trading, on track to open at a new record high.
  5. The Empire State manufacturing survey will be released today. FedEx (FDX) and Oracle (ORCL) will report earnings.

stock market news sept 17

Trade Concerns Pressure Global Stocks

Stocks in Asia mostly struggled to start the week, as investors anticipated another round of tariffs on China out of the U.S. Hong Kong's Hang Seng gave back 1.3% and China's Shanghai Composite lost 1.1%, ending at a multi-year low. South Korea's Kospi fell 0.7%, and Japan’s Nikkei was closed for holiday.

Trade concerns are also weighing on European benchmarks today. Technology stocks in particular are underperforming, while one of the best performers is retailer H&M, which is surging after earnings. Investors are also digesting eurozone inflation data, which matched earlier estimates with a 2% rise in August. Against this backdrop, the French CAC 40 is flat, London's FTSE 100 is down 0.07%, and Germany's DAX has fallen 0.3%.

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