Morning Update: Boeing (BA) Pulls the Dow Lower

First Look

Major indices are mixed ahead of the bell Monday. Larry Kudlow, head of the National Economic Council, said that talks with China are making headway. People’s Bank of China Governor Yi Gang said both sides have reached a consensus on many critical issues. Gang also said the U.S. and China have discussed the possibilities of China devaluing the yuan in response to tariffs. Boeing (BA) is down 10.7% in the pre-market following the crash of a Boeing 737 Max in Ethiopia that killed all 157 people on board this weekend. This is the second deadly crash in five months of a Boeing 737 Max airliner, which is one of Boeing’s most important aircraft, generating nearly one-third of the company’s profits. China has ordered that all its carriers ground the 737 model, with Indonesia saying it will also half flights. The Nasdaq is up 0.3%, the S&P 500 is up 0.13%, the Dow Jones is down -0.74%.

Today's market outlook is Neutral

Life is a balance of fear and overcoming it.
Jimmy Iovine

Stocks on the Move

Apple Inc. (AAPL), Facebook, Inc. Common Stock (FB) and Advanced Micro Devices, Inc. (AMD) are moving higher this morning, while Boeing Co (BA), Eli Lilly And Co (LLY) and Oracle Corporation (ORCL) are headed lower. Apple Inc. (AAPL), Facebook, Inc. Common Stock (FB) and Rapid7 Inc (RPD) were upgraded by analysts this morning, while SunTrust Banks, Inc. (STI), Nucor Corporation (NUE) and Oracle Corporation (ORCL) were downgraded.

International Markets

Stocks in Asia are mixed. The Shanghai SE Composite Index is up 1.92%, the Hang Seng is up 0.97%, the Nikkei 225 is up 0.47% the Mumbai Sensex is down -0.15% and the Australia ASX All Ordinaries is down -0.38%. In Europe stocks are up. The FTSE 100 is up 0.55%, the DAX is up 0.38%, the Euro Stoxx 50 is up 0.32% and the CAC 40 is up 0.28%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is up 0.35 at 56.42 per barrel. Brent crude is up 0.44 at 66.18 per barrel. Natural Gas is down -0.08 at 2.79. Precious metals are down this morning. Gold is down -3.24 at 1295.06 per ounce. Platinum is down -3.64 at 814.57 while silver is down -0.04 at 15.31. 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, 929,767 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 693,735 put contracts. The single-session put/call was 0.75 while the 20-day moving average is now at 0.62.

Earnings Expected Today

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Today's Economic Calendar

What's Happening Period Release Time
Retail Sales Jan 08:30
Business Inventories Jan 08:30

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