Dow Futures Pop as U.S., China Move Forward on Trade

Following Monday's volatile session, Dow Jones Industrial Average (DJIA) futures are trading more than 375 points above fair value this morning on news of fresh trade talks between Washington and Beijing. In addition to an overnight phone call between Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer, and Chinese Vice Premier Liu He, President Donald Trump tweeted this morning, "Very productive conversations going on with China! Watch for some important announcements!"

Traders are also digesting this morning's inflation data, which showed the producer price index (PPI) unexpectedly edged up 0.1% last month. Year-over-year, wholesale inflation fell to 2.5% from 2.9%.

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

• The immediate risk to bulls ahead of options expiration, according to Schaeffer's Senior V.P. of Research Todd Salamone.
• One stock popped after being named a 2019 top pick at Cowen.
• The China news that had GoPro flirting with new lows.
• Plus, Alphabet's Pichai heads to the Hill; trade chatter boosts auto stocks; and the retail stock sinking after earnings.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 962,080 call contracts traded on Monday, compared to 670,464 put contracts. The single-session equity put/call ratio fell to 0.70, and the 21-day moving average rose to 0.71.
2. Google CEO Sundar Pichai will testify in front of the House Judiciary Committee at 10:00 a.m. ET, marking his inaugural trip to Capitol Hill. Earlier this year, both Pichai and Alphabet Inc (NASDAQ:GOOGL) Larry Page declined to participate in a Senate Select Committee on Intelligence hearing on Russian meddling in the 2016 U.S. presidential election. After closing last night at $1,053.18, GOOGL stock is trading up 1.1% ahead of the bell.
3. A Bloomberg News report suggesting China will cut U.S. car tariffs to 15% from 40% is boosting auto stocks today. While the shares of Ford Motor Company (NYSE:F) are 3.2% higher in premarket trading, General Motors Company (NYSE:GM) stock is 3% higher, and Tesla Inc (NASDAQ:TSLA) is up 2%.
4. Stitch Fix Inc (NASDAQ:SFIX) reported better-than-expected fiscal first-quarter profit of 10 cents per share and revenue of $366.2 million. However, the subscription-based retailer forecast flat active subscriber growth this holiday season, and was hit with a round of bearish brokerage notes, including a downgrade to "market perform" at William Blair. SFIX shares are down 19.1% in electronic trading, set to slice through recent support near their year-to-date breakeven mark.

5. Dave & Busters (PLAY), DSW (DSW), and Francesca's (FRAN) will report earnings.

European Markets Rise on Brexit Vote Delay

Asian markets were all over the place today, mirroring the volatility seen on Wall Street. China's Shanghai Composite added 0.4%, while Hong Kong's Hang Seng edged higher by 0.1%, amid optimism over the latest round of U.S.-China trade talks. Over in Japan, the Nikkei fell 0.3%. Lastly, South Korea's Kospi gave back less than 0.1%.

European stocks are higher across the board today, with all eyes on Britain, where Prime Minister Theresa May abruptly postponed a parliament Brexit vote on Monday. At last check, London's FTSE 100 was up 1.6%, powered by a strong day from advertising group WPP, which announced new cost-cutting measures. Elsewhere, the German DAX is eyeing a 1.9% gain behind improving German economic sentiment data, while the French CAC is also up 1.9%, as President Emmanuel Macron promised tax cuts and a higher minimum wage.