Markets Mixed Ahead of Trade Talks

First Look

Stocks are slightly lower in the pre-market Thursday morning. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are scheduled to meet with China’s top trade negotiators today in Washington. Neither side seems optimistic about the possibility of reaching an expansive trade deal this week. White House officials will likely be proposing the same deal from earlier this year before trade negotiations broke down. China has suggested that the country would be open to a limited trade deal that included concessions of non-core topics like additional purchases of U.S. agricultural products, but only if no more tariffs are imposed by the White House. Such a deal would only be a first step, with more negotiations needed on core issued such as intellectual property rights. The U.S. plans to raise tariffs from 25% to 30% on $250 billion in Chinese goods on October 15, with additional levies scheduled for December 15. The Nasdaq is down -0.13%, the S&P 500 is down -0.15%, the Dow Jones is down -0.19%.

Today's market outlook is Neutral

There is beauty in humility and imperfection.
Guillermo del Toro

Stocks on the Move

Qorvo Inc (QRVO), Freeport-McMoRan Inc (FCX) and E*TRADE Financial Corp (ETFC) are moving higher this morning, while NetApp Inc. (NTAP), Delta Air Lines, Inc. (DAL) and United Airlines Holdings Inc (UAL) are headed lower. Apple Inc. (AAPL), Match Group Inc (MTCH) and Bed Bath & Beyond Inc. (BBBY) were upgraded by analysts this morning, while Devon Energy Corp (DVN), Earthstone Energy Inc (ESTE) and Continental Resources, Inc. (CLR) were downgraded.

International Markets

Stocks in Asia are mixed. The Shanghai SE Composite Index is up 0.78%, the Nikkei 225 is up 0.45%, the Hang Seng is up 0.07% the Australia ASX All Ordinaries is down -0.06% and the Mumbai Sensex is down -0.78%. In Europe stocks are mixed. The CAC 40 is up 0.24%, the FTSE 100 is down -0.05%, the Euro Stoxx 50 is down -0.09% and the Euro Stoxx 50 is down -0.09%.

Futures and Currencies

Energy futures are up today. The price for West Texas Intermediate crude oil is up 0.35 at 52.94 per barrel. Brent crude is up 0.37 at 58.69 per barrel. Natural Gas is up 0.02 at 2.25. Precious metals are mixed this morning. Gold is up 2.33 at 1507.91 per ounce. Platinum is down -1.03 at 891.31 while silver is down -0.02 at 17.79. The dollar is down compared to the major currencies today. The greenback is down against the euro, down against the Yen and down 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
CPI Sep 08:30
Initial Claims 10/05 08:30
Continuing Claims 9/28 08:30
EIA Natural Gas Inventories 10/05 10:30

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