Dow Futures Climb With Trade Deal "Totally Done"

Boeing is lower in electronic trading, though

by Patrick Martin

Published on Dec 16, 2019 at 9:23 AM
Updated on Dec 16, 2019 at 9:35 AM

With the "phase one" trade deal details now out in the open, Dow Jones Industrial Average (DJI) futures are signaling a strong start the last full trading week of 2019. Over the weekend, U.S. Trade Representative Robert Lighthizer said in an interview that the deal with China was "totally done," and is expected to be signed in January. Dow futures would be higher, were it not for a big drop from blue chip Boeing (BA), after the Wall Street Journal reported the aerospace company was considering scaling back or ending production of its grounded 737 Max aircraft. 

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

  • Options bears piled on this drug stock rally.
  • Behind Broadcom's post-earnings flop.
  • Plus, Horizon Therapeutics gets great news; Urban Outfitters downgraded; and more trouble for PG&E.  

Stock Futures Chart Dec 16

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.2 million call contracts traded on Friday, compared to 679,551 put contracts. The single-session equity put/call ratio rose to 0.55, while the 21-day moving average stayed at 0.59.
  2. Horizon Therapeutics PLC (NASDAQ:HZNP) stock is up 8.3% in electronic trading, after an independent advisory committee for the Food and Drug Administration (FDA) voted to approve the company's treatment for thyroid eye disease drug. The FDA's official decision is expected to come in March. Four analysts have hiked their price targets in response, and HZNP is set to open at its highest point in four years.
  3. Urban Outfitters, Inc. (NASDAQ:URBN) stock is down 1.2% ahead of the bell, after Loop Capital cut its rating to "hold" from "buy" on intensifying promotional competition. URBN is down 20%  year-to-date, and last month gapped lower in the wake of a subpar quarterly report.  
  4. The shares of PG&E Corporation (NYSE:PCG) are down 25.8% before the bell, after California Governor Gavin Newsom rejected the utility company's bankruptcy reorganization plan. PCG was up 50% in December going into today.
  5. The IHS Markit flash composite purchasing managers index (PMI) will debut today, alongside the National Association of Home Builders (NAHB) housing market index and Empire State manufacturing index. The earnings slate is bare.

Buzz Chart Dec 16

Upbeat Economic Data out of China; London's FTSE 100 Roars

There was mixed trading in Asia overnight, as investors monitored the trade agreement between the U.S. and China, along with data out of the latter country. Specifically, China’s industrial output and retail sales were better than expected for November, helping the Shanghai Composite rise 0.6% to its highest close since early November. However, it was the lone index to grab a win in the region, with the Hang Seng dropping 0.7%, the Nikkei falling 0.3%, and the Kospi closing down 0.1%. 

Stocks in Europe, meanwhile, are shooting higher again, led by another big day from FTSE 100, following last week’s election in the U.K. The London-based index has jumped 2.3% higher so far, trading at its highest point since early August. France’s CAC 40 is following close behind with a 1.1% rise, and Germany’s DAX is up 0.7%. 




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