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

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

by Josh Selway

Published on Jan 7, 2019 at 9:05 AM

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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