Stock Futures Signal Strong Start on China Headlines

China set a higher-than-expected reference point for the yuan

by Patrick Martin

Published on Aug 8, 2019 at 9:24 AM

Dow Jones Industrial Average (DJI) futures are comfortably above fair value this morning, with the blue-chip index stabilizing after yesterday's volatile trading day. The upside comes after the People’s Bank of China (PBoC) set the yuan's reference point higher than analysts were expecting, though still at its weakest point since 2008, and data showed Chinese exports unexpectedly rose in July. Wall Street is also eyeing the 10-year Treasury yield, which is trading near 1.7% after hitting a roughly three-year low yesterday. Elsewhere, oil prices are also bouncing back, with September-dated crude futures up 2.5% at $52.25 per barrel. 

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

  • Behind WW stock's best day in years.
  • Signal says these 2 Dow stocks could keep climbing.
  • Options bears circled Netflix after Disney's bundle news.
  • Plus, Roku roars higher after earnings; a Symantec/Broadcom deal may be back on; and bull notes for Lyft post-earnings.

Stock Futures Chart August 8

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 883,268 call contracts traded on Wednesday, compared to 685,729 put contracts. The single-session equity put/call ratio stayed at 0.78, while the 21-day moving average rose to 0.66.
  2. Roku Inc (NASDAQ:ROKU) stock is up 16.1% in electronic trading, after the streaming service reported a slimmer-than-expected second-quarter loss. Revenue also topped estimates, and the company added 1.4 million new accounts. ROKU is set to open at a record high, and has already received two upgrades and three price-target hikes this morning.
  3. Symantec Corporation (NASDAQ:SYMC) stock is up 11.3% ahead of the bell, after the Wall Street Journal reported Broadcom is in advanced talks to buy the cybersecurity company's enterprise business in a deal valued at $10 billion. News of a potential takeover sent SYMC to an annual high of $26.07 on July 8, but the shares gapped lower soon after on reports discussions had fizzled.
  4. The shares of LYFT Inc (NASDAQ:LYFT) are up 7.1% in electronic trading, after the ride-sharing service reported a narrower-than-anticipated second-quarter loss. Revenue beat expectations, too, while active riders increased by 41%. So far, nine brokerages have issued price-target hikes, while Wedbush came through with an upgraded to "outperform." 
  5. The weekly crude inventories report will be released today. Earnings from Applied Optoelectronics (AAOI), Canada Goose (GOOS), Capri Holdings (CPRI), CVS Health (CVS), CyberArk Software (CYBR), Switch (SWCH), Skyworks Solutions (SWKS), and Teva Pharmaceutical (TEVA) are due.

stock market news aug 8

Chinese Trade Data Boosts Asian Markets, Pharma Stocks Rally in Europe

Mainland stocks led a bounce back in Asia after data showed Chinese exports unexpectedly jumped 3.3% in July and the PBoC fixed the yuan at a stronger level than anticipated. At the close, China's Shanghai Composite was up 0.9% -- snapping its six-day losing streak -- Hong Kong's Hang Seng was 0.5% higher, South Korea's Kospi had added 0.6%, and Japan's Nikkei had gained 0.4%.

European markets are boasting big gains at midday, boosted by a strong rally in pharmaceutical stocks. The French CAC 40 is pacing its regional peers, up 1.3% after the Bank of France's business survey showed economic growth picked up last month. Elsewhere, the German DAX is flirting with a 0.9% pop, while London's FTSE 100 is 0.3% higher.


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