Tariff Threats Triggering Stock Futures Pullback

President Trump threatened to put tariffs on Apple's iPhones

by Patrick Martin

Published on Nov 27, 2018 at 9:15 AM

Stock futures appear poised to pull back from yesterday's strong rebound, as fresh trade tensions between the U.S. and China surface ahead of Friday's G-20 summit, where leaders of the countries are expected to meet. President Donald Trump told the Wall Street Journal it was "highly unlikely" the U.S. would delay its tariff increases on Chinese imports, set to go into effect on Jan. 1. In addition, Trump went after Apple (AAPL), suggesting a 10% tariff on iPhones and laptops imported from China. In response, the Dow Jones Industrial Average (DJIA) is set to open down more than 100 points, while the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are poised to open in the red as well.

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

  • Schaeffer's Senior V.P. of Research Todd Salamone says the jury is still out on a possible double bottom.
  • Credit Suisse is targeting a 55% surge in this chipmaker.
  • Options traders have been taking sides on Ciena stock.
  • Plus, Spirit Airlines ups Q4 guidance; Amarin offers up heart drug funding; and Tesla sales sink in China.

Stock Futures Chart Nov 27

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 814,666 call contracts traded on Monday, compared to 519,950 put contracts. The single-session equity put/call ratio fell to 0.64, and the 21-day moving average remained at 0.71.
  2. Spirit Airlines, Inc. (NYSE:SAVE) is up 10.8% in electronic trading, after the airliner raised its fourth-quarter unit revenue forecast. In response, Evercore and Cowen have issued price-target hikes to $68 and $60, respectively. SAVE stock is set to open at a fresh annual high, and has seen recent pullbacks contained by its 50-day moving average.
  3. Amarin Corporation (NASDAQ:AMRN) stock is down 7% ahead of the bell, after the drugmaker announced the pricing of a $200 million stock offering for the company's development of its heart disease drug, Vascepa. Upbeat data from this drug back in September shot the stock higher, but it has since pulled back to its 50-day moving average. Nevertheless, AMRN boasts a whopping 383% lead in 2018. 
  4. Shares of Tesla Inc (NASDAQ:TSLA) are down 2% in electronic trading, after a Reuters report indicated the carmaker's vehicle sales dropped 70% in China year-over-year last month, due to the U.S. trade war. It's been a choppy year for TSLA amid a flurry of negative press, but the stock still has gained 11% year-to-date.
  5. Today will also feature the S&P Corelogic Case-Shiller home price index, the FHFA home price index, and consumer confidence data. Fed Vice Chair Richard Clarida, Atlanta Fed President Raphael Bostic, Kansas City Fed President Esther George, and Chicago Fed President Charles Evans will all speak at a panel in New York tonight. There will also be earnings reports from Cracker Barrel (CBRL), GW Pharma (GWPH), Hibbett Sports (HBI), Nutanix (NTNX), and Salesforce.com (CRM).

buzz stocks nov 27

Tariff Threats Weigh on European Stocks

It was a mixed finish in Asia today, as trade worries ramped up ahead of this week's meeting between Trump and China President Xi Jinping at the G-20 summit. Japan's Nikkei outperformed its regional peers, adding 0.6%, as electronics retailer Panasonic climbed on Cyber Monday optimism. South Korea's Kospi also gained ground, closing up 0.8%. On the flip side, Hong Kong's Hang Seng gave back 0.2%, and China's Shanghai Composite slipped 0.04%.

European markets are in the red at midday after Trump threatened tariffs on more Chinese goods. Plus, travel and leisure stocks are taking a big hit following a profit warning from U.K.-based airline Thomas Cook. At last check, London's FTSE 100, the German DAX, and the French CAC 40 are all down around 0.5%..


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