Dow Futures Slide 445 Points as Trump Tweets Reignite Trade Tensions

Trump said he would raise tariffs on $200 billion in Chinese goods on Friday

Managing Editor
May 6, 2019 at 9:17 AM
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Dow Jones Industrial Average (DJI) futures are deep in the red this morning, down 445 points after President Donald Trump reignited trade war fears in a series of tweets. Specifically, Trump threatened to raise tariffs on $200 billion of Chinese goods to 25% from 10% this Friday, May 10, and said another $325 billion of Chinese goods will be slapped with a 25% tariff. China is now reportedly considering backing out of the this week's trade talks. As such, futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also notably lower, while the Cboe Volatility Index (VIX) -- or Wall Street's "fear gauge" -- is set to skyrocket.

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

  • Analyst says this cancer stock could surge 51%.
  • Put buyers took profits on this pharma stock's slide.
  • This drug stock is an "undervalued growth story."
  • Plus, one drug giant's post-earnings surge; an underperforming food stock; and Pinterest stock's underwhelming analyst note.

OV Futures Chart May 6

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 651,176 put contracts. The single-session equity put/call ratio fell to 0.52, while the 21-day moving average stayed at 0.60.
  2. Bausch Health Companies Inc (NYSE:BHC) is up 2.7% in early trading, after the pharmaceutical name raised its full-year guidance, despite reporting a first-quarter revenue miss. Set to open just above $24, BHC recently flashed a historic buy signal.
  3. Food distributor Sysco Corporation (NYSE:SYY) is down 0.7% this morning, as traders digest the firm’s fiscal third-quarter earnings report. Sysco stock is up nearly 19% from its late-December bottom, but has struggled to take the $71 area -- where SYY was trading before a November bear gap.
  4. New-to-the-scene Pinterest Inc (NYSE:PINS) is 3.7% lower ahead of the bell, after landing a fresh analyst note out of Susquehanna. The firm initiated coverage with a "neutral" rating and $35 price target, noting Pinterest's lack of clarity in engagement trends. This price point represents a 23% premium to Friday's close. PINS has only been trading publicly since April 18, but so far has managed to add just over 16%.
  5. A speech from Philadelphia Fed President Patrick Harker will encompass the economic schedule today. Meanwhile, Hertz Global (HTZ), Mosaic (MOS), Papa John's (PZZA), Rent-A-Center (RCII), Sysco (SYY), and Tyson Foods (TSN) will report earnings.

stock market news may 6

Trade Backlash Continues Overseas

President Trump’s tariff tweets also sent global markets spiraling. China’s Shanghai Composite fell 5.6% to trade at levels not seen since February, while the yuan also suffered heavy losses. In Hong Kong, the Hang Seng closed down 2.9%, and Japan’s Nikkei gave back 0.2%. Rounding out the region, the South Korean Kospi finished with a 0.7% defeat.

With London’s FTSE 100 closed for holiday, markets in France and Germany are left to suffer the brunt of the trade-induced sell-off. At last check, the French CAC 40 was down 1.9%, and the German DAX was off 1.7%.

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