Stock Futures Higher on Relaxed Huawei Restrictions

Chip stocks are higher after yesterday's sell-off

Managing Editor
May 21, 2019 at 9:14 AM
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Following yesterday's tech sell-off, futures on the Dow Jones Industrial Average (DJI) are signaling a positive open, as U.S. officials Monday night temporarily eased trade restrictions on China’s Huawei through Aug. 19. Elsewhere, Boeing (BA) shares are pointed higher in electronic trading, on reports that a bird strike may have caused a 737 MAX crash in March. That's helping to offset what could be a negative open for Home Depot (HD) after earnings. The tech-heavy Nasdaq-100 Index (NDX) and the S&P 500 Index (SPX) are also pointed higher.

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

  • This sector indicator should give bulls a boost, per Schaeffer's Senior Market Strategist Matthew Timpane.
  • BofA-Merrill: Dump this finance stock before earnings.
  • This travel stock's "buy" signal has never been wrong.
  • Plus, the retailer swinging higher on earnings; Elon Musk's latest blow; and the auto stock seeing a post-earnings dip.

OV Futures Chart May 21

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.07 million call contracts traded on Monday, compared to 703,725 put contracts. The single-session equity put/call ratio fell to 0.65, while the 21-day moving average stayed at 0.66.
  2. Retail giant TJX Companies Inc (NYSE:TJX) is up 1% in electronic trading, after the company reported a first-quarter earnings beat and a 5% rise in comparable-store sales. TJX has pulled back since its April highs, but found support atop its 80-day moving average, and remains 18% higher year-to-date.
  3. Elon Musk's Tesla Inc (NASDAQ:TSLA) is under fire once again, with Morgan Stanley slashing its "worst-case scenario" price target to $10 from $97, citing concerns about Chinese demand. In addition, TSLA received a price-target cut to $340 from $400 at Baird. TSLA has already shed 25% in the past month, and is set to open at a nearly three-year low, last seen down 3.1% in pre-market trading.
  4. Monro Inc (NASDAQ:MNRO) is eyeing a modestly lower open, after the auto company reported fiscal fourth-quarter profit below expectations. However, the company also said it's expanding its tire partnership with Amazon (AMZN). MNRO has been in a channel of higher highs since early 2017, touching a record peak of $89.72 as recently as April 1.
  5. Expected today is a speech from Fed Vice Chairman Richard Clarida, as well as one from Boston Fed President Eric Rosengren. Data on existing home sales is also slated for release. Autozone (AZO), Nordstrom (JWN), Toll Brothers (TOL), and Urban Outfitters (URBN) will all step into the earnings confessional.

stock market news may 21

Asian Stocks Close Mixed on Huawei Exemptions

The selling eased some in global markets overnight and into this morning. In Asia, China’s Shanghai Composite snapped back with a 1.2% gain thanks to news of the Huawei exemptions, though Hong Kong’s Hang Seng sank 0.5%. In South Korea, the Kospi managed to pick up 0.3%, while the Nikkei dipped 0.1%.

In Europe, the major indexes are broadly higher as investors digest a wave of corporate earnings releases. Germany’s DAX is leading the way so far today, up 1%, followed by a 0.6% advance from London’s FTSE 100. In France, the CAC 40 has gained 0.5%.

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