Stock Futures Signal More Gains on Trade Tailwinds

Trade chatter is driving US stock markets higher this morning

by Patrick Martin

Published on Aug 30, 2019 at 9:25 AM

Dow Jones Industrial Average (DJI) futures are signaling another solid triple-digit jaunt higher, thanks to the latest buzz on the U.S.-China trade spat. Although new tariffs on $300 billion in Chinese goods are still set to go into effect this Sunday, Sept. 1, the two sides were reportedly maintaining "effective communication," according to China's Foreign Ministry. Elsewhere, consumer spending rose 0.6% in July, topping the 0.5% estimate, while the core personal consumption expenditures (PCE) index edged up 0.2% last month, bringing its annual rate to 1.4%.

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

  • These are the 25 best stocks on the S&P for September.
  • Call buyers flocked to GameStop after a website overhaul.
  • 3 chip stocks that rallied on yesterday's trade tailwinds.
  • Plus, Campbell Soup rises after earnings beat; Tesla cars get a China tax exemption; and American Outdoor Brands eyes a new bottom.

Stock Futures Chart Aug 30

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 881,877 call contracts traded on Thursday, compared to 581,314 put contracts. The single-session equity put/call ratio climbed to 0.66, while the 21-day moving average remained at 0.73.
  2. Campbell Soup Company (NYSE:CPB) stock is up 3.9% in electronic trading, after the packaged food titan reported fiscal fourth-quarter earnings and revenue that topped analyst expectations. CPB is set to open at a fresh annual high, and has added 31% year-to-date through last night's close at $43.31.
  3. Tesla Inc (NASDAQ:TSLA) shares are up 3.7% ahead of the bell, after China's Ministry of Industry and Information Technology said it would exempt 16 Tesla models from the country's auto import tax. TSLA has added 25% since its June 3 bottom at $176.99, settling last night at $221.71. 
  4. American Outdoor Brands Corp (NASDAQ:AOBC) stock is down 11.5% in electronic trading, after the gunmaker reported fiscal first-quarter earnings and revenue that fell short of estimates. The company also trimmed its full-year guidance, citing tariffs as a reason. AOBC is set to open at a new seven-year low near $6.62 per share, should this pre-market price action follow through.
  5. The Chicago purchasing managers index (PMI) is on tap. The U.S. stock market will be closed on Monday for the Labor Day holiday, but next week's action brings a number of Fed speeches.

buzz stocks oct 30

Tech Creates Tailwinds in Asia; European Stocks Eye Economic Data

It was a mostly higher finish in Asia, following a strong session on Wall Street. Easing U.S.-China trade tensions boosted tech stocks around the region, with South Korea's Kospi jumping 1.8% on a big rally from Apple supplier LG Display, and Japan's Nikkei surging 1.2% on a positive day for robotics maker Fanuc. Hong Kong's Hang Seng also closed higher -- adding 0.08%, even after the country's retail sales fell the most since February 2016, down 11.4% in July as political protests ramped up -- while China's Shanghai Composite gave back 0.2%.

European markets are boasting impressive gains at midday, as trade hope offsets hawkish comments from European Central Bank (ECB) members, who have warned recently that the economy is not weak enough yet to warrant new stimulus measures. Yesterday's comments from ECB Governor Klaas Knot preceded this morning's batch of economic data, which showed Germany's retail sales slumped 2.2% in July, while eurozone inflation was unchanged at 1% in August. At last check, the German DAX is up 1.2%, as real estate stocks rally on reports a proposed rent freeze in Berlin may not be as harsh as initially expected, the French CAC 40 is 0.9% higher, and London's FTSE 100 is pacing for a 0.7% gain.

 

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