Trade Buzz Fuels Stock Futures

Private jobs data came in well below estimates

by Karee Venema

Published on Apr 3, 2019 at 9:11 AM

Dow Jones Industrial Average (DJI) futures are trading well above fair value this morning, with traders upbeat ahead of the latest round of U.S.-China trade talks. With Chinese Vice Premier Liu He in Washington D.C. today, the Financial Times is reporting the two sides have made significant progress in negotiations. Traders are also watching rising oil prices -- with the May-dated crude up 0.1% at $62.63 per barrel -- and shrugging off weak ADP private payrolls data, which showed U.S. businesses added a lower-than-expected 129,000 new jobs in March.

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

  • This emerging analyst trend could be positive for stocks, according to Schaeffer's Senior Quantitative Analyst Rocky White.
  • History says to buy cheap calls on Shopify stock.
  • Options traders blasted this booming biotech.
  • Plus, GameStop set for single digits; Blue Apron's C-suite shakeup; and a downgraded Dow stock.

us stock market open april 3

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 881,986 call contracts traded on Tuesday, compared to 499,054 put contracts. The single-session equity put/call ratio fell to 0.57, and the 21-day moving average remained at 0.63.
  2. The shares of GameStop Corp. (NYSE:GME) are down 12.3% in electronic trading, after the video game retailer's fourth-quarter revenue miss and lower-than-expected current-quarter forecast overshadows a quarterly profit beat. Analysts have been quick to chime in, with GME price-target cuts coming from Credit Suisse (to $10) and Wedbush (to $12). After closing last night at $10.10, GME stock is set for its first trip into single-digit territory since March 2005.
  3. Blue Apron Holdings Inc (NYSE:APRN) stock is trading up 17.7% ahead of the bell, after the meal delivery service said CEO Brad Dickerson will be replaced by former Etsy Chief Operating Officer Linda Findley Kozlowski. Co-founder Ilia Papas is also leaving. APRN also reaffirmed its current-quarter and full-year forecasts.
  4. Deutsche Bank downgraded Caterpillar Inc. (NYSE:CAT) to "hold" from "buy," and slashed its price target to $128 from $152, citing expectations for a weakening demand from China and Europe, and saying the "U.S. is over-saturated with equipment." After settling last night at $140.19, the construction stock is down 0.7% in pre-market trading.
  5. The ISM non-manufacturing index, and the weekly crude inventories update are due, while Atlantic Fed President Raphael Bostic and Minneapolis Fed President Neel Kashkari will speak. Acuity Brands (AYI) and Signet Jewelers (SIG) report earnings.

stock market news april 3

Asian Stocks Advanced With Oil Prices

Asian stocks finished firmly higher, after the Financial Times report. Energy also remains in focus as Brent crude futures extended their climb. By the close, China's Shanghai Composite, Hong Kong's Hang Seng, and South Korea's Kospi were up 1.2% apiece, while Japan's Nikkei brought up the rear with a 1% advance.

Once again today, basic resources are leading the charge in Europe, this time over optimism on U.S.-China trade. As a result, traders are shrugging off a mild downturn in the IHS Markit Eurozone composite purchasing managers index (PMI), which backpedaled to 51.6 in March. At last look, the German DAX has rallied 1.2%, the French CAC 40 is 0.7% higher, and London's FTSE 100 has edged up 0.2%.


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