Dow Futures Jolt Higher on U.S.-China Trade Buzz

Futures on the Dow Jones Industrial Average (DJI) are above fair value this morning, on news U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer will hold trade negotiations with Chinese Vice Premier Liu He in Washington in early October. Additionally, a Bloomberg report indicated Beijing issued new tariff exemptions for U.S. soybean purchases, with Chinese importers buying roughly 20 cargoes on Monday.

S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are signaling a higher start, too, with tailwinds coming from Apple (AAPL). The tech stock is up 0.9% in electronic trading, after Jefferies initiated coverage with a fresh "buy" rating.

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

• Why traders should prepare for a volatility pop, according to Schaeffer's Senior Market Strategist Matthew Timpane.
• History suggests it's time to dump this travel stock.
• Nike options are pricing in a major post-earnings swing.
• Plus, Netflix price target slashed; Disney gets a new bull rating; and BlackBerry braces for a big drop.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw 992,236 call contracts traded on Monday, compared to 640,296 put contracts. The single-session equity put/call ratio arrived at 0.65, while the 21-day moving average remained at 0.64.
2. Pivotal Research slashed its Netflix Inc (NASDAQ:NFLX) price target to $350 from $515, citing a larger-than-expected rise in market content costs as competition in the streaming space accelerates. Analysts have been turning cautious on the FAANG stock following its sharp third-quarter sell-off, down 27.6% so far through last night's close at $265.92. NFLX is down 0.3% ahead of the bell.
3. Wells Fargo initiated coverage on Walt Disney Co (NYSE:DIS) with an "outperform" rating, saying the media giant is "in the rarified air of appealing to consumers of all ages and generations." DIS stock is 1% higher in electronic trading, after closing last night at $132.46 -- up 20.8% year-to-date.
4. BlackBerry Ltd (NYSE:BB) is bracing for a 13.7% drop out of the gate, after the tech name reported a second-quarter revenue miss and downwardly revised the top end of its current-quarter revenue growth range. BB stock closed last night at $7.51 -- up 5.6% year-to-date -- and today's pre-market price action likely has some options traders sweating.
5. The S&P CoreLogic Case-Shiller home price index and the Conference Board's consumer confidence index are due. Nike (NKE), AutoZone (AZO), CarMax (KMX), IHS Markit (INFO), and Manchester United (MANU) will report earnings.

U.K. Stocks Down After Johnson Dealt Legal Blow

Stocks in Asia were tentatively higher on Tuesday, as economic data out of Europe sparked even more fears of a slowing global economy. The Kospi in South Korea saw the biggest gains, up 0.5% on news of China waivers for U.S. soybean imports, while China's Shanghai Composite tacked on 0.3%. The Hong Kong Hang Seng inched up 0.2%, while Japan's Nikkei eked out a 0.1% win, despite declines in retail and financial sectors.

European markets are mixed at midday, as investors eye the latest on trade between the U.S. and China. London's FTSE 100 is down 0.2% after U.K. Prime Minister Boris Johnson's five-week suspension of parliament was found to be unlawful by the Supreme Court, setting the stage for the House of Commons to resume business this week ahead of the Oct. 31 Brexit deadline. The French CAC 40 has added 0.2%, while the German DAX hovers right above breakeven, up 0.05% after the Ifo business sentiment index signaled some improvement, but companies’ expectations fell to 10-year lows.