Stock Futures Indicate Flat Open as U.S. and China Meet

The U.S. and China are kicking off another round of trade talks

Jan 7, 2019 at 9:05 AM
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U.S. stock futures are little changed this morning, with the Dow Jones Industrial Average (DJI) coming off Friday's stunning Fed-induced rally. Wall Street's attention this morning is centered around U.S.-China trade relations, as the two countries again meet to discuss a potential trade agreement. Another huge deal in the healthcare space is in focus, too, with Eli Lilly (LLY) announcing plans to buy Loxo Oncology (LOXO) for $8 billion. After the open, traders will also digest factory orders and the Institute for Supply Management (ISM) non-manufacturing index.

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

stock futures jan 7

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.25 million call contracts traded on Friday, compared to 740,897 put contracts. The single-session equity put/call ratio fell to 0.59, and the 21-day moving average held at 0.74.
  2. One of the biggest analyst notes this morning came from BMO on General Motors Company (NYSE:GM). GM stock was upgraded to "outperform" from "market perform" and saw its price target upped to $41 from $38. Analysts at BMO feel that the company's restructuring efforts will result in better profitability.
  3. Analysts also weighed in on Altria Group Inc (NYSE:MO), and like we saw in late December, they're taking a cautious view on the tobacco giant. This time it was Cowen downgrading MO stock to "market perform" from "outperform," and slashing its price target to $53 from $74, based on its forecast of declining cigarette volumes in the coming years.
  4. Axsome Therapeutics Inc (NASDAQ:AXSM) is a giant pre-market winner, last seen up 180%, after the company's depression drug met its main goals in a mid-stage study. The stock is coming off an all-time low of $1.94 from Dec. 27, but if these pre-market gains hold, would have it in roughly two-year-high territory.
  5. Atlanta Fed President Raphael Bostic will speak. Commercial Metals (CMC) will report earnings.

stock market news jan 7

Asian Shares Rise; Weak Price Action In Europe

Asian markets finished higher as U.S.-China trade talks kicked off. Japan's Nikkei outpaced its peers, adding 2.4% after Prime Minister Shinzo Abe said monetary policy could be adjusted to account for "various risks" from the global economy. Elsewhere in the region, South Korea's Kospi jumped 1.3%, Hong Kong's Hang Seng rose 0.8%, and China's Shanghai Composite tacked on 0.7%.

European markets are in negative territory at midday, after Societe Generale underscored global economic growth concerns by cutting its 2019 average oil price forecast. Additionally, traders are keeping a close eye on Brexit talks, with a key vote scheduled for next Tuesday, Jan. 15. At last check, London's FTSE 100 is off 0.5%, the German DAX is down 0.4% following a wider-than-expected drop in industrial orders in November, and the French CAC 40 is 0.6% lower.


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