U.S.-China relations are weighing heavily on traders' minds
Dow Jones Industrial Average (DJI) futures are sharply below fair market value on the last trading day of May, as investors anxiously await U.S. President Donald Trump's upcoming news conference regarding U.S.-China relations. Potentially sharp rhetoric or a harsh response could threaten
to incite more economic turmoil with China. Futures on the S&P 500 Index (SPX) the Nasdaq-100 Index (NDX) are also lower, as Wall Street eyes April personal income data that rose by 10.5%, as well as upcoming remarks from Federal Reserve Chair Jerome Powell later today on combating the economic toll of COVID-19.
Continue reading for more on today's market, including:
- Calls have been a big hit for this bank stock.
- American Airlines stock fell after a jobs update.
- Plus, Costco beat earnings and revenue forecasts; DELL capitalized on home-based workers; and Tyson closed down a processing plant after employees tested positive for coronavirus.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.5 million call contracts traded on Thursday and 795,839 put contracts. The single-session equity put/call ratio rose to 0.54, and the 21-day moving average remained at 0.58.
- Costco Wholesale Corporation (NASDAQ:COST) is down 1.8% before the open, after the the bulk retailer reported earnings that came in just below forecasts. COST also saw comparable-store sales fall, and today's dip is set to eat
into the stock's 5% 2020 lead.
- Dell Technologies Inc (NYSE:DELL) stock is up 6.1% in electronic trading, after the tech icon reported adjusted quarterly earnings and revenue well above the consensus estimates. Dell is up 15% this quarter going into today.
- The shares of Eli Lilly and Co (NYSE:LLY) are up 0.9% ahead of the bell, after the pharmaceutical company earned Food and Drug Administration (FDA) approval for a radioactive agent critical in detecting Alzheimer's
disease. LLY is up 30% in the last 12 months, but is a ways off its April 24 record high of
$164.90.
- Closing out the week and month, consumer spending, and core inflation data will all be reported today. The Chicago purchasing managers index (PMI) and the consumer sentiment index also due out. As far as earnings, Big Lots (BIG) will report.
All Overseas Eyes on Trump's China Speech
Stocks in Asia were mixed on Friday, ahead of President Trump’s announcement concerning U.S.-China relations. Hong Kong’s Hang Seng dipped 0.7%, still reeling from China’s approved national security law. Amid the bubbling tensions,
China’s Shanghai Composite gained 0.2%, while elsewhere, the Kospi in South Korea gained 0.1% and Japan’s Nikkei dropped 0.2% amid data concerning Japan’s retail sales – falling 12.7% year-over-year in April.
With investors keeping an eye on the U.S. and China, stocks in Europe are lower today. After three days of gains, London’s FTSE 100 is down 1% at last check, as major stocks with operations in Hong Kong such as Prudential (PRU) drop. The French CAC 40 has dipped 0.3%, with France poised to continue its lockdown easing with restaurants, bars, and cafes June 2, while the German DAX has lost 0.7%.