Chinese stocks just had a huge session
Dow Jones Industrial Average (DJI) futures are trading above fair value this morning, signaling a nearly triple-digit jump for the blue-chip index. Stocks look set to follow the lead of their Chinese counterparts, which soared thanks to reports the country could introduce new stimulus measures, while President Xi also promised to support the private sector. Back in the homeland, traders are preparing for a busy week of corporate earnings releases, though today's earnings and economic slate is somewhat light.
Continue reading for more on today's market, including:
- The China stock halted after a 300% spike.
- Call traders jumped on this drugmaker's trial update.
- Plus, 3 big-name stocks on analysts' radars this morning.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.10 million call contracts traded on Friday, compared to 906,243 put contracts. The single-session equity put/call ratio rose to 0.82, and the 21-day moving average moved up to 0.65.
- Intel Corporation (NASDAQ:INTC) is trading 1% higher in pre-market action following an upgrade to "buy" from "neutral" at Nomura. The stock has been trending lower in recent months, and upside momentum could stall in the face of the formerly supportive 320-day moving average. The company is set to report earnings after the close this Thursday, Oct. 25.
- eBay Inc (NASDAQ:EBAY) stock has been struggling all year, losing close to 9% on Friday to hit fresh lows after an analyst downgrade. Monness Crespi Hardt and BofA-Merrill Lynch followed this up with downgrades to "neutral" from "buy" this morning, and the latter sliced its price target to $33 from $44. EBAY shares are set to drop another 1.8% at the open. Year-to-date, they're down close to 24%.
- Another name seeing analyst attention this morning is Chipotle Mexican Grill, Inc. (NYSE:CMG), which was upgraded to "outperform" from "sector perform" at RBC. The brokerage firm also boosted its price target to $510 from $450, citing changes to the company's menu and its new focus on delivery. On the other hand, Wedbush lowered its price target on CMG stock to $380 from $445.
- It will be a relatively light start to a heavy earnings week, with Halliburton (HAL), Kimberly-Clark (KMB), and TD Ameritrade (AMTD) reporting.
China Stocks Lead Rally In Asia
Stocks in Asia surged today, with a significant lead coming from Chinese markets on optimism over expected stimulus measures. China's Shanghai Composite jumped 4.1% for its biggest daily gain in two years, while Hong Kong's Hang Seng added 2.3%. Japan’s Nikkei reversed early losses and closed 0.4% higher, while South Korea’s Kospi took home a 0.3% win.
European markets are higher at midday, with stocks in Italy leading the way after credit ratings firm Moody's gave an expected downgrade, but issued a "stable" outlook for the region. Fiat is also in focus, up 5% after the company agreed to sell its Magneti Marelli unit to Japan's Calsonic Kansei for $7.1 billion. Elsewhere, Ryanair is up 5.7% in London after earnings. At last check, London’s FTSE 100 has added 0.9%, Germany’s DAX is 0.8% higher, and France’s CAC 40 is seeing a modest 0.5% gain.