Dow Jones Industrial Average (DJI) futures are trading well above fair value, as the blue-chip index looks to end a volatile week on a bright note and build on yesterday's positive momentum. Bouncing Treasury yields are easing concerns about a global recession for now, with the 10-year Treasury yield last seen at 1.56%. On the trade front, President Donald Trump confirmed to reporters that talks with China were ongoing ahead of an early September meeting between the two countries. And as far as economic data, Wall Street is so far shaking off a third straight drop in housing starts in July.
Continue reading for more on today's market, including:
- 3 stocks to watch after analyst upgrades.
- This car stock has plenty left in the tank.
- M&A reports have BHC stock near a bullish trendline.
- Plus, Deere reports earnings miss; a bull note for Merck; and Nvidia roars on blowout quarterly report.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 974,585 call contracts traded on Thursday, compared to 953,303 put contracts. The single-session equity put/call ratio climbed up to 0.98, the highest since Dec. 21, while the 21-day moving average rose to 0.70.
- Deere & Company (NYSE:DE) stock is down 0.6% in electronic trading, after the machinery company reported fiscal third-quarter earnings that fell short of expectations. The company also trimmed its full-year outlook, citing U.S.-China trade-war uncertainties. Bearish sentiment on DE had been building; as of yesterday's close at $143.71, the stock had shed 16% from its July 29 annual high of $171.22.
- Merck & Co, Inc. (NYSE:MRK) stock is up 1.3% ahead of the bell, after Leerink initiated coverage on the drug name with an "outperform" rating. The analyst in coverage glowed about the company's Keytruda drug, saying investors underestimate its potential. Merck stock sports a modest 9.2% year-to-date lead, and nabbed a 19-year high of $87.07 back on July 3.
- The shares of Nvidia Corporation (NASDAQ:NVDA) are up 6.3% in electronic trading, after the chip company reported second-quarter earnings and revenue that exceeded analyst expectations. So far, Craig-Hallum and BMO have upped their price targets to $170 and $145, respectively, while Mizuho and J.P. Morgan Securities trimmed theirs to $185 and $200. The options market had been pricing in a much larger-than-usual post-earnings swing for the chip stock today.
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Data on consumer sentiment will be released.
Chip Stocks Lead European Markets Higher
Asian markets finished mostly higher today, with Hong Kong's Hang Seng outperforming with its 0.9% gain. Elsewhere, China's Shanghai Composite rose 0.3% on a strong gain for media name DuZhe Publishing & Media, and Japan's Nikkei settled up 0.06%. On the flip side, South Korea's Kospi returned from holiday with a 0.6% drop.
Stocks in Europe are higher near the end of a volatile trading week, with strength from the semiconductor sector creating tailwinds. At last check, the French CAC 40 is boasting a 1% gain, the German DAX has added 0.9%, and he U.K.'s FTSE 100 is up 0.5%, after a delayed opening due to a lengthy London Stock Exchange outage.