Stocks Eye Holiday Week Gains

China will reportedly scale back some of its tariffs in 2020

by Patrick Martin

Published on Dec 23, 2019 at 9:11 AM

Fresh off a record-setting weekDow Jones Industrial Average (DJI) futures are trending higher yet again. Fueling this morning's risk-on approach are trade tailwinds out of China, after the country's finance ministry announced it will reduce import tariffs on a number of goods starting in January. This comes after President Donald Trump said on Friday that he had "a very good talk" with Chinese President Xi Jinping, putting the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) on pace for positive opens, as well. Meanwhile, blue chip Boeing (BA) will remain in focus today, as news just hit that its CEO Dennis Muilenburg has resigned.

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

  • This pharmacy stock just took out a key trendline.
  • One analyst has big plans for General Motors stock in 2020.
  • Plus, Sarepta links up with Roche; Aurora Cannabis announces restructuring; and former UBER CEO selling stake.  

Stock Futures Chart Dec 23

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.75 million call contracts traded on Friday, compared to 803,179 put contracts. The single-session equity put/call ratio rose to 0.46, while the 21-day moving average fell to 0.58.
  2. Sarepta Therapeutics Inc (NASDAQ:SRPT) stock is up 8.1% in electronic trading, after the drugmaker inked a $1.15 billion licensing deal with Swiss drugmaker Roche. The deal will focus on Sarepta's gene therapy treatment for Duchenne's Muscular Dystrophy outside of the U.S. SRPT is up 67% this quarter.
  3. Aurora Cannabis Inc (NYSE:ACB) stock is down 2.2% ahead of the bell, after the Canadian pot company announced steps to reduce debt and boost liquidity. This comes ahead of the company's announcement of its "Cannabis 2.0" products. ACB is down 70% in the last six months, and fell to a record low of $2.14 on Nov. 19. 
  4. The shares of Uber Technologies Inc (NYSE:UBER) are only up 0.2% before the open, but still in focus after former CEO Travis Kalanick sold more than 90% of his stake in the ride-sharing app recent weeks, according to SEC filings. UBER is staring up at resistance at its 100-day moving average.
  5. New home sales and the Chicago Fed National Activity index will be featured. The earnings slate will host the only company on the schedule for the week, Neogen. 

Buzz Chart Dec 23

Tariff Tailwinds Boost Overseas Markets

Asian markets settled on both sides of the breakeven today as investors focused on U.S. President Donald Trump’s optimistic comments over the trade talks between the U.S. and China last Friday, and news that China plans to lower tariffs on roughly 850 imported items. Despite this, The Shanghai Composite in China settled 1.4% lower, joined by the Kospi in South Korea, which dropped 0.02%. On the other hand, the Nikkei in Japan closed 0.02% higher, while Hong Kong’s Hang Seng added 0.1%. 

European stocks were mostly higher amid the aforementioned easing geopolitical tensions between the U.S. and China. The FTSE 100 in London is 0.5% higher, climbing alongside NMC Health after the company launched an independent self-review to reassure investors it has control over its finances, in response to following short seller Muddy Waters’ concerning outlook. Meanwhile, the German DAX is down 0.1%, while the French CAC 40 has added 0.09%. 

 

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