Stock Futures Pop Following Chinese Tariff Announcement

President Biden is considering easing tariffs on Chinese imports

Deputy Editor
May 23, 2022 at 9:05 AM
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After another week deep in the red, Wall Street is looking at a reprieve this morning. Futures on the Dow Jones Industrial Average (DJIA) are pointing toward a 309-point pop, while S&P 500 Index (SPX) futures continue to claw out of bear market territory. Futures on the tech-laden Nasdaq-100 Index (NDX) are flashing a notable triple-digit lead as well.

Investor sentiment improved after U.S. President Joe Biden indicated this morning he might reduce tariffs on some Chinese imports imposed by the Trump administration. Elsewhere, the 10-year Treasury yield remains near elevated levels around 2.8%. 

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

  • Schaeffer's Senior Market Strategist Matthew Timpane, CMT digs into a historic S&P 500 weekly pattern.
  • How this real estate stock could fare as the housing market cools.
  • Plus, EA's M&A news; GameStop's new digital wallet; and computer name gets downgraded.

Futures Chart May 23_2022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts traded on Friday, and 1.28 million put contracts. The single-session equity put/call ratio stayed at 0.80, and the 21-day moving average stayed at 0.61.
  2. The shares of Electronic Arts Inc. (NASDAQ:EA) are up 3.4% in premarket trading, after the video game company announced it is seeking a buyer or merger partner. The video game maker has already reportedly reached talked to Walt Disney (DIS), Apple (AAPL), and Amazon.com (AMZN). Should this early morning action hold, Electronic Arts stock will move back above its year-to-date breakeven mark, and chip away at its 7.8% year-over-year deficit.
  3. GameStop Corp. (NYSE:GME) is up 2.6% ahead of the bell, following the launch of the company's digital wallet for cryptocurrencies and NFTs. GameStop stock is extending a bounce from the $80 level, which caught at least one other pullback this year. In the last 12 months, GME is down 43.9%.
  4. Helmerich & Payne, Inc. (NYSE:HP) was downgraded to "neutral" from "buy" at Citi, with the firm noting near- to mid-term moderating in PC demand. HP fell 1.2% in the premarket as a result, putting it on track to log its fourth-straight daily loss. Year-to-date, however, the stock is up 92.5%.
  5. No economic data of note is scheduled on the calendar today. 

OV Buzz May 23

European Markets Rise Ahead of The World Economic Forum

Asian markets were mixed on Monday, as investors weighed the volatility that has haunted global markets of late. Hong Kong’s Hang Seng paced the laggards with a 1.2% drop, after XPeng’s (XPEV) tumbled ahead of its first-quarter earnings report, dragging other tech stocks lower. Meanwhile, China’s Shanghai Composite was slightly above breakeven with a 0.01% gain, South Korea’s Kospi settled 0.3% higher, and Japan’s Nikkei added 1%.

European markets are edging higher, brushing off recent inflation and recession fears. Investors are now eyeing this week’s kickoff of The World Economic Forum in Davos, Switzerland, where prominent political and business figures are expected to address the Covid-19 pandemic and the Russia-Ukraine war. In other news, Siemens Gamesa stock surged after getting a 4.06 billion euro offer from Siemens Energy to buy all of its outstanding shares. At last check, London’s FTSE 100 is 1.2% higher, the German DAX is eyeing a 0.8% pop, and France’s CAC 40 is up 0.3%.

 

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