Dow Ready to Rise on Trade Hopes

Dow Jones Industrial Average (DJI) futures are signaling a strong start for stocks, trading well above fair value this morning. Traders will monitor trade-related headlines as talks continue between the U.S. and China, while also awaiting a prime-time address from President Donald Trump over the government shutdown. In the meantime, there will be more economic data to digest when the Job Openings and Labor Turnover Survey (JOLTS) hits shortly after the open. Against this backdrop, the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are set for gains, too, with large-cap tech names showing strength in premarket trading.

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

• Schaeffer's Senior V.P. of Research Todd Salamone discusses the VIX level bulls should be watching.
• The e-commerce stock crushed by concerning China allegations.
• Options traders may have won big on rallies from CLVS and SAGE stocks.
• Plus, Cowen buys the weed craze; China growth optimism for Canada Goose; and more M&A buzz out of healthcare.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 1.01 million call contracts traded on Monday, compared to 604,667 put contracts. The single-session equity put/call ratio moved up to 0.60, and the 21-day moving average held at 0.74 again.
2. Traders are passing around a note out of Cowen this morning that's bullish on the cannabis sector. The brokerage firm cites weak cigarette and alcohol sales as positives for marijuana in the U.S., with the tobacco industry in particular potentially looking to weed for revenue growth. Cowen named Tilray Inc (NASDAQ:TLRY) -- which has already teamed up with Anheuser Busch Inbev (BUD) -- as a favorite in the sector, but its top pick was Canopy Growth Corp (NYSE:CGC).
3. Retail stock Canada Goose Holdings Inc (NYSE:GOOS) is in focus after Susquehanna assured investors that the company should still see plenty of growth in China, despite recent concerns for tech name Apple (AAPL) in the region. The brokerage firm listed GOOS as one of a few retailers that should benefit from a strong holiday shopping season.
4. Meanwhile, Credit Suisse is suggesting Bristol-Myers Squibb Co (NYSE:BMY) could be a hostile takeover target, following the company's decision to buy Celgene (CELG) for $74 billion -- a move that may not be sitting well with shareholders. Analysts at Credit Suisse mentioned Pfizer (PFE), AbbVie (ABBV), and Amgen (AMGN) as potential suitors for BMY.
5. Wall Street will also see international trade stats today. Helen of Troy (HELE) is set to announce quarterly earnings.
   
   

Retailers Help European Indexes

It was a mixed finish in Asia today, with traders tracking headlines surrounding U.S.-China trade talks. Japan's Nikkei outpaced its peers, adding 0.8% as Softbank surged on news the telecom slashed its planned investment in U.S. startup WeWork by $14 billion to $2 billion. Hong Kong's Hang Seng added 0.2%. Elsewhere, China's Shanghai Composite slipped 0.3%, while South Korea's Kospi fell 0.6% after Samsung Electronics dropped on a downwardly revised fourth-quarter operating profit forecast.

European markets are higher at midday, as a big rally in retail stocks overshadows a wider-than-expected fall in eurozone business sentiment in December. Stabilizing oil prices could also be adding to the bullish buzz, with March-dated Brent futures up 1.3% at last check. While the French CAC 40 flirts with a 1.5% gain, the German DAX is up 1.3%, and London's FTSE 100 is 0.9% higher.