Earnings have been strong this morning
U.S. stock futures are trading above fair value this morning, putting the S&P 500 Index (SPX) on pace to hit a record high. Dow Jones Industrial Average (DJI) futures are comfortably in the black, as well, pointing to a roughly 100-point rise at the open, thanks to a strong earnings reaction for blue chip Walgreens Boots Alliance (WBA). Lingering optimism around U.S.-China trade talks could also be adding to the bullish backdrop, as the SPX aims for a fourth consecutive positive session.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.17 million call contracts traded on Friday, compared to 661,476 put contracts. The single-session equity put/call ratio fell to 0.56, while the 21-day moving average came in at 0.69.
- More bullish analysts are getting behind Apple Inc. (NASDAQ:AAPL) ahead of the company's earnings release this Wednesday. At least four brokerage firms upped their price targets, the highest coming from Jefferies at $285. AAPL shares have gained 10% so far this month, and notched a record closing high of $246.58 on Friday.
- General Motors Company (NYSE:GM) is up 1% before the open as the company's union worker strike finally came to an official close on Friday. In response, the company is restarting operations at a number of plants in Mexico. GM stock has been stuck just below the 50-day moving average in recent days, but many options traders have continued to buy calls.
- One name set to make a big earnings move is Spotify Technology SA (NYSE:SPOT), rising 8.4% before the open thanks to the company's surprise profit in the third quarter, driven by an increase in paid subscribers. SPOT stock has slid on the charts in recent months, but has been trying to rally since skimming the $110 area around the start of this month.
- International trade in goods data is due out today. Akamai Technologies (AKAM), Alphabet (GOOGL), Beyond Meat (BYND), Diamond Offshore (DO), Loews (L), NXP Semiconductor (NXPI), Texas Roadhouse (TXRH), T-Mobile (TMUS), Transocean (RIG), XPO Logistics (XPO), and Xerox (XRX) will report earnings.
Tech Guides Asian Markets Higher
Asian markets kicked off the week with a win, as tech stocks powered gains on signs of progress in U.S.-China trade negotiations. At the close, China's Shanghai Composite climbed 0.9%, Hong Kong's Hang Seng was up 0.8%, while South Korea's Kospi and Japan's Nikkei added 0.3% apiece.
Stocks in Europe are mostly higher at midday, with traders eyeing the European Union's (EU) decision to grant a three-month extension for Brexit. Most recently, the German DAX is up 0.4%, while the French CAC 40 is flirting with a 0.1% lead -- the latter boosted by luxury stocks, which are rising on reports Paris-based LVMH made a $14.5 billion bid to buy U.S. firm Tiffany (TIF). London's FTSE 100, on the other hand, is down 0.02%, as big bank HSBC slips after earnings.