Larry Kudlow said Thursday evening that a phase one trade deal between China and the U.S. was imminent
Renewed trade optimism has Dow futures on the rebound after last night's drop. The blue chip index is signaling an 80-point gain on comments from White House economic advisor Larry Kudlow that the U.S. and China are on the precipice of a trade agreement. Elsewhere, investors are combing over a better-than-forecast 0.3% pop in retail sales for October, just ahead of the holiday shopping season.
Continue reading for more on today's market, including:
- How options traders are playing Slack stock ahead of earnings.
- Why one China tech stock could see even more volatility ahead.
- Plus, JCP throws its hat in the earnings ring; Berkshire Hathaway unveils its stake in RH; and J.P. Morgan names Lyft a "top pick."
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.29 million call contracts traded on Thursday, compared to 609,311 put contracts. The single-session equity put/call ratio moved down to 0.47, while the 21-day moving average came in at 0.61.
- Department store retailer J C Penney Company Inc (NYSE:JCP) is set to open way higher today, up 10.9% in pre-market trading following a smaller-than-expected third-quarter loss of 30 cents per share. JCP also said it expects full-year adjusted earnings to surpass the high end of its previously forecast range.
- Warren Buffett-helmed Berkshire Hathaway Inc. (NYSE:BRK) disclosed in its quarterly 13-F filing that it owns a new stake in Restoration Hardware Holdings, Inc (NYSE:RH) worth $206.3 million, or 1.21 million shares, as of Sept. 30. RH stock has tacked on 6.7% ahead of the bell.
- The shares of Lyft Inc (NASDAQ:LYFT) are up 1.1% this morning after J.P. Morgan Securities said the ride share concern was a "top pick," citing the firm's strengthening earnings, revenue, and market share in its sector. Separately, regulatory filings show Soros Fund Management dissolving its Lyft stake last quarter.
- The Empire State manufacturing index data, import and export prices, and business inventories are out today. JD.com (JD) will report earnings.
Kudlow Comments Boost Asia; Europe Eyes Data Deluge
Stocks in Asia closed out the week on a mostly higher note, after Kudlow's upbeat comments on a phase one trade deal. However, Chinese Ministry of Commerce spokesman Gao Feng acknowledged the ongoing discussions are contingent on rolling back tariffs. China's Shanghai Composite was the region's only loser, shedding 0.6%, while life insurer AIA helped nudge Hong Kong's Hang Seng marginally higher at the close. Elsewhere, Japan's Nikkei added 0.7%, while South Korea's Kospi gained 1.1% thanks to a big day from chipmaker SK Hynix.
Over in Europe, markets are also a mixed bag, as eurozone inflation slowed to 0.7% in October compared to 0.8% in September. Lackluster consumer spending data out of Britain is one reason London's FTSE 100 is down 0.3% -- plus, the European Union (EU) is launching a case against the U.K. for failing to appoint a new representative to the European Commission. Rounding out the region, the French CAC 40 is up 0.4%, while the German DAX sports a 0.2% gain.