Stocks Ready to Resume Uptrend

The Chinese Commerce Ministry said U.S. and China remain in close discussion

by Patrick Martin

Published on Dec 26, 2019 at 9:24 AM

Dow Jones Industrial Average (DJI) futures are poised for modest gains this morning, with volume still light in the wake of the Christmas holiday. The S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also on pace for positive opens today, with the latter ready to take a crack at an 10th straight record close. U.S.-China trade tailwinds continue to blow, after the Chinese Commerce Ministry said the two sides remain in close contact about signing the trade pact. Elsewhere, weekly jobless claims rose to 220,000 last week. 

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

  • Senior Quantitative Analyst Rocky White outlines the 20 stocks ripe for a short-covering rally in the new year.
  • Uber stock flashed a bearish signal after a big court ruling.
  • Plus, PayPal eyes 2020 takeovers; Amazon.com reports record holiday season; and Wedbush sees more Tesla gains.  

Stock Futures Chart Dec 26

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 590,330 call contracts traded on Tuesday, compared to 304,596 put contracts. The single-session equity put/call ratio slipped to 0.52, while the 21-day moving average remained at 0.58.
  2. PayPal Holdings Inc. (NASDAQ:PYPL) stock is up 0.4% in electronic trading, after Chief Financial Officer John Rainey told the Wall Street Journal the payments processor will be pursuing takeover targets in 2020. PYPL is up 29% in 2019, and has found support at its 320-day moving average.
  3. Amazon.com, Inc. (NASDAQ:AMZN) stock is in focus this morning, after the e-commerce giant reported the holiday shopping season broke all prior records, with "billions of items" ordered worldwide, and millions of Amazon products sold. AMZN is up 19% year-to-date, but has been stymied by its 200-day moving average in the last three months.
  4. The shares of Tesla Inc (NASDAQ:TSLA) are ready to resume their hot streak -- up 0.5% ahead of the bell -- after Wedbush hiked its price target to $370 from $270. The analyst in coverage thinks Tesla will "comfortably" meet its fiscal-year delivery forecasts. Tesla spent Christmas Eve nabbing a new record high of $425.47. 
  5. MBA mortgage applications fill out today's slate.

Buzz Chart Dec 26

Asian Markets Rise; Europe Closed for Holiday

Markets in Asia a nice lift during a relatively quiet trading day, as Hong Hong’s Hang Seng remained closed following the Christmas holiday. The Shanghai Composite added 0.9%, South Korea’s Kospi tacked on 0.4%, and the Nikkei in Japan was up 0.6%. Markets in Europe are closed for holiday.


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