Reignited China Trade Tensions Send Dow Futures Lower

U.S.-China trade tensions are back in the headlines this morning, with Dow Jones Industrial Average (DJI) futures pointed toward yet another open in the red. Specifically, China’s Ministry of Commerce spokesperson Gao Feng said the U.S. should "adjust its wrong actions" if it would like to continue trade negotiations, as the "crackdown on Chinese companies ... forms a great threat to the security of the global industrial and supply chain." This comes as more chipmakers cut ties with China's Huawei, and amid reports the Trump administration is considering restrictions on Hikvision. As such, the Nasdaq-100 Index (NDX) and the S&P 500 Index (SPX) are also pointed lower this morning.

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

• Apple supplier slammed by an antitrust court ruling. 
• 2 retailers seeing bearish analyst attention after earnings. 
• Trendline test stalling this Dow stock's rebound.
• Plus, Deutsche Bank's CEO speaks; Victoria's Secret parent reports earnings; and Target lands back in the headlines.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 841,043 call contracts traded on Wednesday, compared to 607,282 put contracts. The single-session equity put/call ratio rose to 0.72, while the 21-day moving average edged up to 0.67.
2. Deutsche Bank AG (NYSE:DB) is down 1.9% in electronic trading, after CEO Christian Sewing said he’s ready to make “tough cutbacks” and is “rigorously focusing our bank on profitable and growing businesses.” DB stock has had a rough go on the charts since early 2018, more than halving in that time frame.
3. Victoria’s Secret parent L Brands Inc (NYSE:LB) is surging 11% in electronic trading, after announcing a first-quarter earnings beat, driven by Bath & Body Works sales. The company also hiked the lower end of its full-year guidance. L Brands stock just yesterday hit a nearly nine-year low of $21.47, and sits on a year-to-date deficit of 16%.
4. Big name retailer Target Corporation (NYSE:TGT) is back in the headlines this morning, after J.P. Morgan Securities and Citigroup handed out fresh bull notes following yesterday’s post-earnings bull gap. One day off TGT’s impressive first-quarter report, Citigroup hiked its price target to $80 from $78, and J.P. Morgan Securities upgraded the shares to "overweight" from "neutral," and raised its price to $100 from $81. 

5. Expected for today are weekly jobless claims, data on new home sales, crude inventories, and the Fed balance sheet. Meanwhile, Atlanta Fed President Raphael Bostic will speak, joined by Dallas Fed President Robert Kaplan, Richmond Fed President Tom Barkin, and San Francisco Fed President Mary Daly. Autodesk (ADSK), Best Buy (BBY), Deckers Outdoor (DECK), HP Inc (HPQ), Hewlett Packard Enterprise (HPE), Hormel Foods (HRL), Ross Stores (ROST), and SINA (SINA) will report earnings.

European Markets Lower on May Resignation Rumors

Stocks in Asia got crushed on trade war fears, tech shares leading the decline. China’s Shanghai Composite closed down 1.4%, and the Hang Seng settled with a 1.6% decline. Japan’s Nikkei dropped 0.6%, and the Kospi closed with a 0.3% loss in South Korea.

The trade headwinds are weighing in Europe, as well. Investors there are also monitoring the ongoing Brexit drama, as well as U.K. elections, with rumors of Prime Minister Theresa May’s imminent resignation swirling. France’s CAC 40 and Germany’s DAX are both down 1.5%, and London’s FTSE 100 is off 1.2%.