Markets Decline as China Trade Deal Seems Less Likely

First Look

Major indices are down ahead of the bell Tuesday morning after White House officials blacklisted eight Chinese tech companies. The move follows accusations of human rights violations against Muslims in the Chinese province of Xinjiang, and comes just days before high-level trade talks are set to resume in Washington this week. Two of the blacklisted tech companies dominate much of the global market in video surveillance equipment. China has indicated that it will retaliate, sending optimism lower that a deal can be reached in this week’s talks face-to-face talks. The Nasdaq is down -0.58%, the S&P 500 is down -0.61%, the Dow Jones is down -0.67%.

Today's market outlook is Neutral

You can't knock on opportunity's door and not be ready.
Bruno Mars

Stocks on the Move

Newmont Goldcorp Corp (NEM), Tractor Supply Company (TSCO) and Microsoft Corporation (MSFT) are moving higher this morning, while United Rentals, Inc. (URI), Emerson Electric Co. (EMR) and Devon Energy Corp (DVN) are headed lower. SunTrust Banks, Inc. (STI), M&T Bank Corporation (MTB) and Microsoft Corporation (MSFT) were upgraded by analysts this morning, while Zions Bancorporation NA (ZION), TerraForm Power Inc (TERP) and Lowe’s Companies, Inc. (LOW) were downgraded.

International Markets

Stocks in Asia are mixed. The Nikkei 225 is up 0.99%, the Australia ASX All Ordinaries is up 0.41%, the Shanghai SE Composite Index is up 0.29% the Hang Seng is up 0.28% and the Mumbai Sensex is down -0.38%. Stocks in Europe are down. The DAX is down -1.01%, the CAC 40 is down -0.98%, the Euro Stoxx 50 is down -0.97% and the FTSE 100 is down -0.19%.

Futures and Currencies

Energy futures are down today. The price for West Texas Intermediate crude oil is down -0.81 at 51.95 per barrel. Brent crude is down -0.78 at 57.57 per barrel. Natural Gas is down -0.01 at 2.31. Precious metals are up this morning. Gold is up 10.68 at 1504.18 per ounce. Platinum is up 8.68 at 886.58 while silver is up 0.07 at 17.61. The dollar is mixed compared to the major currencies today. The greenback is down against the euro, down against the Yen and up against the Pound.

Put/Call Ratio

Yesterday, 916,877 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 598,296 put contracts. The single-session put/call was 0.65 while the 20-day moving average is now at 0.67.

Earnings Expected Today

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Today's Economic Calendar

What's Happening Period Release Time
NFIB Small Business Optimism Index Sep 06:00
PPI Sep 08:30

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