Dow Futures Signal Dreary Start to September

China filed a complaint against the U.S. with the WTO

by Karee Venema

Published on Sep 3, 2019 at 9:15 AM

Dow Jones Industrial Average (DJI) futures are spiraling this morning, as trade uncertainty swirls after a round of new U.S. tariffs on Chinese goods went into effect over the long holiday weekend. While China filed a complaint with the World Trade Organization (WTO) against these new tariffs, Bloomberg News reported the two countries are locking horns on scheduling trade negotiations. Against this backdrop, futures on the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are trading below fair value, too, in what looks to be a negative start to September.

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

  • Founder and CEO Bernie Schaeffer calls out the commodity ETF with the wildest September stats.
  • 2 stocks propped up by insider buying news.
  • Signal says steer clear of this shipping stock.
  • Plus, 3 blue chips set to drop; bullish analysts blast Square; and Vertex makes a big purchase.

us stock premarket trading on sept 3

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 808,357 call contracts traded on Friday, compared to 551,481 put contracts. The single-session equity put/call ratio climbed to 0.68, while the 21-day moving average slipped to 0.72.
  2. The negative trade buzz is weighing on names with direct exposure to China. Among several Dow stocks trading lower ahead of the bell are Apple Inc. (NASDAQ:AAPL), down 0.8%, Boeing Co (NYSE:BA), off 2.2%, and Caterpillar Inc. (NYSE:CAT), 1.5% lower.
  3. Square Inc (NYSE:SQ) was upgraded to "buy" at both MoffettNathanson and SunTrust Robinson, with the latter saying the sale of the financial technology firm's food-delivery service "free[s] up investment dollars." SQ stock is up 1.5% in electronic trading, after closing last Friday at $62.36 - up 10.3% on the year.
  4. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) said it is buying privately held Semma Therapeutics -- which makes stem-cell based treatments to control blood glucose levels -- for $950 million in cash. VRTX stock settled at $180.02 last Friday -- an 8.6% year-to-date gain -- and is up 0.8% in pre-market trading.
  5. The Institute for Supply Management's (ISM) manufacturing index, Markit's purchasing managers manufacturing index (PMI), and data on construction spending are due. Boston Fed President Eric Rosengren will speak after the close. There are no notable earnings scheduled for release.

buzz stocks sept 3

European Stocks Sink on Brexit Drama

Markets in Asia finished mixed on Tuesday, with Hong Kong’s Hang Seng suffering the biggest loss, down 0.4%  after Chief Executive Carrie Lam expressed her desire to step down from her post amid the violent protests that have broken out in recent months. South Korea’s Kospi also fell 0.2%, while the Shanghai Composite in China tacked on 0.2% despite renewed U.S. trade tensions. Elsewhere, the Nikkei in Japan eked out a 0.02% win.

As more Brexit drama brews, stocks in Europe are swimming in red ink at midday. London’s FTSE 100 has dropped 0.3% as British opposition lawmakers look to halt no-deal Brexit proceedings, sending the pound to its lowest point in nearly three years. The German DAX is down 0.4%, while the French CAC 40 has lost 0.5%.

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