A warm reception to this weekend's trade talks between U.S. President Donald Trump and China's President Xi Jinping on the sidelines of the G-20 meeting has Dow futures surging more than 200 points above fair value. The two nations decided they would hold off on imposing new tariffs in favor of moving forward with talks, with tech stocks in focus after Trump indicated that business restrictions on Huawei would be eased. As a result, Nasdaq-100 Index (NDX) futures are more than 100 points above fair value this morning.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
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The Chicago Board Options Exchange (CBOE) saw 1.05 million call contracts traded on Friday, compared to 584,246 put contracts. The single-session equity put/call ratio landed at 0.55, while the 21-day moving average is 0.63.
- KB Home (NYSE:KBH) just got an upgrade to "neutral" from "sell" at BTIG. The analyst said the homebuilder's quarterly earnings report was promising, and said the company's strength in the California market will "help offset weaker margins in other markets" during the second half of 2019 and early in 2020.
- Biogen Inc (NASDAQ:BIIB) reported positive data for its new treatment, Spinraza, in pre-symptomatic infants with spinal muscular atrophy. The pharma concern said 88% of patients treated with this drug were able to walk without assistance. BIIB stock is up 0.9% ahead of the bell, but remains well below recent resistance at its 80-day moving average.
- A huge surge in June gaming revenue in Macau has shares of Wynn Resorts, Limited (NASDAQ:WYNN) skyrocketing in electronic trading. Gross revenue rose 5.9%, coming in much higher than analysts' estimated 2.5%. WYNN is up 5% in pre-market action to trade above $130, thanks to its heavy Macau exposure, with the equity set to gap above its bearishly crossed 50-day and 80-day moving averages near the mid-120s.
- The weekly schedule starts with Markit's purchasing managers manufacturing index (PMI), the Institute for Supply Management's (ISM) manufacturing index, and construction spending.
Tariff Truce Has Asian Markets Rallying
The tariff truce between the U.S. and China sent shares of Asian equities rallying. While Hong Kong’s Hang Seng was closed for holiday, China’s Shanghai Composite jumped 2.2%, closing at its highest point since the end of April. Japan’s Nikkei saw similar upside, finishing with a 2.1% lead on the day. South Korea’s Kospi, meanwhile, closed fractionally lower.
European bourses are also gaining on trade optimism. Meanwhile, traders are considering the eurozone’s manufacturing purchasing manufacturers index (PMI) for June, which came in softer than expected, while Germany’s own manufacturing PMI also missed expectations. Still, London’s FTSE 100 is up 1.4%, Germany’s DAX is gaining 1.3%, and France’s CAC 40 was last seen up 0.8%.