Dow Futures Jump on U.S.-China Trade Deal Reports

The Wall Street Journal reported a U.S.-China trade deal could soon be finalized

by Patrick Martin

Published on Mar 4, 2019 at 9:16 AM

Dow Jones Industrial Average (DJI) futures are pointed confidently higher this morning, thanks to more optimistic U.S.-China trade headlines. More specifically, a Wall Street Journal report on Sunday indicated that trade negotiations between the two countries were in their final stages, and a deal could be signed by the end of the month. The report also suggests China is willing to reducing tariffs on certain U.S. goods, including automobiles. Oil prices are in focus, too, with April-dated crude futures up 1.2% at $56.48 per barrel. Elsewhere, Tesla (TSLA) is in the news once more, this time after announcing plans to unveil its Model Y SUV on March 14. 

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

  • FAANG rumors triggered a Kroger stock sell-off.
  • Capri calls were hot after a bullish Jefferies note.
  • This financial stock just flashed a bullish options signal.
  • Plus, Eli Lilly introduces cheaper insulin; Foot Locker gets analyst love; and Alibaba announces Office Depot team-up.

Stock Futures Chart March 4

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.2 million call contracts traded on Friday, compared to 744,655 put contracts. The single-session equity put/call ratio fell to 0.60, and the 21-day moving average slipped to 0.60.
  2. Eli Lilly and Co (NYSE:LLY) stock is up 0.5% in electronic trading, after the drugmaker introduced a new lower-priced insulin that is 50% cheaper than the brand-name version. LLY is fresh off a record high of $129.42 from Friday, and sports a 12-month gain of 67%. 
  3. Foot Locker, Inc. (NYSE:FL) stock is up 0.8% ahead of the bell after Pivotal Research upgraded the retailer to "buy" from "neutral." In addition, four other brokerages have issued price-target hikes, including Guggenheim to $73 from $66. FL is coming off an annual high of $68 on Friday, thanks to an upbeat earnings report
  4. The shares of Alibaba Group Holding Ltd (NYSE:BABA) are up 1.4% in electronic trading, after the Chinese e-tailer announced a partnership with Office Depot (ODP). BABA has gained 34% already in 2019, with pullbacks contained by its ascending 20-day moving average.
  5. The week kicks off with data on motor vehicles sales and construction spending. There will also be earnings reports from (CTRP) and (CRM).

stock market news march 4

Trade Optimism Fuels Strong Days in Asia, Europe

Most Asian markets finished higher today, led by a 1.1% advance for China's Shanghai Composite amid anticipation for an imminent U.S. trade deal. Elsewhere in the region, Japan's Nikkei rose 1%, and Hong Kong's Hang Seng added 0.5%. However, South Korea's Kospi shed 0.2% after a long holiday weekend, with automakers Kia and Hyundai among the biggest laggards.

European equities are cautiously higher at midday, with U.S.-China trade speculation in focus. Closer to home, Daily Mail shares have jumped more than 4% in London on plans to return a 49% stake in Euromoney, plus 200 million pounds in cash, to eligible shareholders. At last check, London's FTSE 100 is up 0.8%, the French CAC 40 has tacked on 0.7%, and Germany's DAX has edged its way to a 0.2% gain.

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