Markets Fall Ahead of the Bell

First Look

Major indices lower in the pre-market Wednesday. White House Economic Advisor Larry Kudlow said Tuesday U.S. officials are expecting Chinese negotiators to come to Washington for additional face-to-face trade talks in September. The White House will also investigate China’s recent moves to lessen support for the falling yuan. Expectations for a deal fall. Escalating trade and currency tensions continues to raise concerns about global economic growth, prompting central banks in India, New Zealand, and Thailand to lower interest rates, with the European Central Bank also considering new rounds of monetary stimulus. Gold futures hit their highest levels since 2013, reaching $1,500 per ounce. Brent crude fell into bear-market territory on Tuesday, following reports that China may cease imports of U.S. oil in retaliation to tariffs. U.S. and U.K officials will be holding a press conference today on shipping security in the Strait of Hormuz. The countries are working together, seeking ways to ensure safety of oil tankers in the region. According to a new United Nations report, North Korea has stolen around $2 billion from banks and cryptocurrency exchanges via hacking and used the stolen funds to support the country’s nuclear program. The Nasdaq is up 0.38%, the S&P 500 is up 0.19%, the Dow Jones is up 0.18%.

Today's market outlook is Neutral

Education is the passport to the future, for tomorrow belongs to those who prepare for it today.
Malcolm X

Stocks on the Move

CVS Health Corp (CVS), Microchip Technology Inc. (MCHP) and Newmont Goldcorp Corp (NEM) are moving higher this morning, while Walt Disney Co (DIS), Dow Inc (DOW) and Bank of America Corp (BAC) are headed lower. Dunkin Brands Group Inc (DNKN), Arconic Inc (ARNC) and Model N Inc (MODN) were upgraded by analysts this morning, while New Relic Inc (NEWR), Quotient Technology Inc (QUOT) and Xencor Inc (XNCR) were downgraded.

International Markets

Stocks in Asia are mixed. The Australia ASX All Ordinaries is up 0.64%, the Hang Seng is up 0.08%, the Shanghai SE Composite Index is down -0.32% the Nikkei 225 is down -0.33% and the Mumbai Sensex is down -0.77%. In Europe stocks are up. The CAC 40 is up 1.31%, the Euro Stoxx 50 is up 1.27%, the DAX is up 1.21% and the FTSE 100 is up 0.72%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is down -0.43 at 53.2 per barrel. Brent crude is down -0.42 at 58.52 per barrel. Natural Gas is up 0.02 at 2.14. Precious metals are up this morning. Gold is up 19.83 at 1494.25 per ounce. Platinum is up 6.81 at 859.51 while silver is up 0.51 at 16.95. The dollar is mixed compared to the major currencies today. The greenback is up against the euro, down against the Yen and up against the Pound.

Put/Call Ratio

Yesterday, 860,334 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 672,164 put contracts. The single-session put/call was 0.78 while the 20-day moving average is now at 0.67.

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Today's Economic Calendar

What's Happening Period Release Time
MBA Mortgage Applications Index 08/03 07:30
EIA Crude Oil Inventories 08/03 10:30
Consumer Credit Jun 15:00

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