Chinese imports and exports grew at slower-than-anticipated paces in November
Despite sharp losses in Asia overnight, Dow Jones Industrial Average (DJIA) futures are trading above fair value this morning. The premarket gains are modest, though, as traders digest a brutal week on Wall Street, with the Dow, S&P 500 Index (SPX) and Nasdaq Composite (IXIC) all coming off their worst weekly losses since March.
Uncertainty is still swirling around trade relations between Washington and Beijing, after the U.S. ambassador to China was summoned over the weekend to explain last week's high-profile arrest of Huawei exec. Traders will also be keeping a close eye on U.K. headlines, amid reports Prime Minister Theresa May is considering withdrawing a parliamentary Brexit vote.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
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The Chicago Board Options Exchange (CBOE) saw 952,729 call contracts traded on Friday, compared to 731,755 put contracts. The single-session equity put/call ratio fell to 0.77, and the 21-day moving average stayed at 0.70.
- The shares of Marinus Pharmaceuticals Inc (NASDAQ:MRNS) are trading up 10% ahead of the bell, set to open near a one-month high around $5.69. The biopharmaceutical firm said patients enrolled in a mid-stage study for its postpartum depression drug, ganaxolone, showed no serious side effects to the treatment.
- Goldman Sachs upgraded Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) to "buy" from "neutral," projecting significant growth in the unmanned space by 2025. In reaction, KTOS stock has shot 11.4% higher in electronic trading, signaling an extended bounce off familiar support at its 200-day moving average.
- Navistar International Corp (NYSE:NAV), on the other hand, was downgraded to "sell" at Goldman Sachs, with the brokerage firm slashing its price target on the truck manufacturer to $23 from $43 -- a discount to last Friday's close at $28.69.
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The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) is due out today. Ascena Retail Group (ASNA) and Stitch Fix (SFIX) will both report earnings.
China Trade Data Misses Estimates
Asian markets slipped today, after China reported November imports and exports that were lower than analyst estimates. Exports grew by 5.4% and imports grew 3% year-over-year, well below the respective expectations of 10% and 14.5%. As a result, China's Shanghai Composite dropped 0.8%, while Hong Kong's Hang Seng fell 1.2%. A rough day for tech weighed on other regional bourses, with Japan's Nikkei giving back 2.1%, and South Korea's Kospi shedding 1.1%.
Over in Europe, stocks are a mixed bag. London's FTSE 100 is up 0.4%, at last check, after reports that tomorrow's Brexit vote could face postponement. The German DAX is down 0.4%, dragged lower by chemical giant BASF SE and its slashed guidance. Lastly, the French CAC 40 is off 0.5%, despite a strong traffic report from airliner Air France KLM.