Stock, Oil Futures Surge on China Trade Optimism

China officials are calling for "calm" negotiations

by Patrick Martin

Published on Aug 26, 2019 at 9:22 AM

Dow Jones Industrial Average (DJI) futures are pointed confidently higher this morning -- with the blue-chip index eyeing a 250-point open --  as Wall Street cheers fresh optimism over U.S.-China trade talks. On Sunday, President Donald Trump said the two countries are "getting back to the table," and are serious about making a deal. According to a Reuters report, Chinese Vice Premier Liu He called for "calm" negotiations, and wants to avoid any more escalation. This comes after the Dow nosedived on Friday in reaction to China's retaliatory tariffs. Elsewhere, oil prices are on the rebound, too, with October-dated crude futures up 1.3% at $54.86 per barrel. 

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

  • Buy the dip on this retail stock.
  • Nike stock was just named a "Best Idea."
  • Analysts weren't buying VMWare's latest purchases.
  • Plus, Amgen scoops up Otezla; C-suite shake up at Kraft Heinz; and Tesla may be raising prices in China.

Stock Futures Chart Aug 26

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 992,661 call contracts traded on Friday, compared to 874,414 put contracts. The single-session equity put/call ratio climbed to 0.88, while the 21-day moving average rose to 0.73.
  2. Celgene Corporation (NASDAQ:CELG) stock is up 3,1% in electronic trading, after the biotech agreed to sell the global rights to its Otezla psoriasis drug to Amgen (AMGN) for $13.4 billion in cash. The deal comes after Bristol-Myers Squibb said it would divest the drug to ease antitrust concerns over its buyout of Celgene. CELG is up 46% year-to-date.
  3. Kraft Heinz Co (NASDAQ:KHC) stock is up 0.8% ahead of the bell, after the food company named Paulo Basilio as its new global chief financial officer (CFO). The firm has been mired in financial troubles, while KHC stock touched an annual low of $24.88 back on Aug. 15, and was staring at a 41% deficit in 2019 going into today. 
  4. The shares of Tesla Inc (NASDAQ:TSLA) are up 1% in electronic trading, after sources indicated the company was considering raising its vehicle prices in China this week, and again in December -- the latter reportedly timed with new Chinese tariffs on U.S. goods. Tesla stock has added 11% in the last three months.
  5. Durable goods orders data is on the docket, as well as earnings from China stock BiliBili (BILI). 

buzz stocks aug 26

Asian Stocks Sink; Europe Reacts to Trade Optimism

Asian markets took bearish cues from Wall Street, reacting to reports U.S. President Donald Trump said he would hike tariffs on Chinese goods. Japan's Nikkei slumped 2.2% on sharp losses from SoftBank, while South Korea's Kospi dropped 1.6% as Cosmo Chemical sold off on a discounted share offering. Elsewhere, China's Shanghai Composite fell 1.2% as the yuan hit a new low against the U.S. dollar, and Hong Kong's Hang Seng gave back 1.9%.

It's a low-volume session in Europe today, with London markets closed for holiday. The price action is occurring to the upside, though, after Trump indicated at the Group of Seven (G-7) summit over the weekend that U.S.-China trade negotiations were back on the table. At last check, the French CAC 40 is up 0.5%, and the German DAX is 0.3% higher, even after the Ifo institute business climate index fell for a fifth straight month in August.


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