Dow Futures Hold Strong Gains After Inflation Data

Dow Jones Industrial Average (DJIA) futures are trading more than 200 points above fair value, after President Donald Trump chimed in on last week's arrest of Chinese tech exec Meng Wanzhou -- who was released on bail yesterday by a Canadian judge. Speaking to Reuters, POTUS said he "would certainly intervene" if he thinks "it's good for what will be certainly the largest trade deal ever made."

And in addition to a possible U.S. government shutdown, traders are also keeping an eye on the U.K., as Prime Minister Theresa May faces a vote of confidence this evening. Inflation data is also in focus, after the Labor Department said consumer prices were flat last month on lower fuel costs, while the year-over-year core consumer price index -- which excludes food and energy -- rose 2.2%.

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

• Founder and CEO Bernie Schaeffer explains the significance of this long-term Apple stock trendline.
• When to panic about the yield curve, according to Schaeffer's Senior Quantitative Analyst Rocky White.
• Bullish analysts keep blasting this blue-chip tech stock.
• Plus, Mallinckrodt swings lower on FDA ruling; American Eagle stock sinks; and disappointing drug data whacks Neurocrine Biosciences.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 663,800 call contracts traded on Tuesday, compared to 431,283 put contracts. The single-session equity put/call ratio fell to 0.65, and the 21-day moving average remained at 0.71.
2. The U.S. Food and Drug Administration (FDA) declined to approve Mallinckrodt PLC's (NYSE:MNK) opioid painkiller, Roxicodone, which was reformulated to deter opioid abuse. The regulatory agency said the drug's application needs further evaluation. In reaction, MNK stock is down nearly 9% in electronic trading, set to open near a five-month low around $19 per share.
3. American Eagle Outfitters (NYSE:AEO) reported a third-quarter profit of 48 cents per share on $1 billion in revenue -- roughly in line with consensus estimates. The retailer also said same-store sales rose a less-than-expected 8% in the three-month period, and forecast weaker-than-forecast earnings for the holiday season. Short-term options bears may need a bigger drop from the stock to profit on their bets, though, with AEO down 5.7% ahead of the bell.
4. Neurocrine Biosciences, Inc. (NASDAQ:NBIX) said its pediatric Tourette syndrome drug, valbenazine, failed to meet its primary goal in a mid-stage trial. NBIX stock is down 18.5% in premarket trading -- on track to open near its Dec. 20 annual low of $68.22, and putting the drug name at risk of bearish analyst attention.

5. Weekly crude inventories and the Treasury budget are due today. Oracle (ORCL), Oxford Industries (OXM), Scholastic Corp (SCHL), Tailored Brands (TLRD), and Vera Bradley (VRA) will report earnings.

Cooling Trade Tensions Boost Asia Stocks

Asian markets moved higher today amid reports of cooling trade tensions, as China will reportedly move to reduce U.S. auto import tariffs down to 15% -- sending auto stocks across the region higher. China's Shanghai Composite added 0.3%, while Hong Kong's Hang Seng gained 1.6%. Elsewhere, South Korea's Kospi tacked on 1.4%, and Japan's Nikkei led the region with a 2.2% rise.

In Europe, stocks are also upbeat on renewed U.S.-China trade optimism, with basic resource stocks leading the charge today. London's FTSE 100 is up 1.2%, at last check, but all eyes remain on May ahead of today's closely watched vote. The French CAC 40 is up 1.9%, despite a terror attack in Strasbourg, while the German DAX is up 1.2%.