Morning Update: Iran Escalation Sends Markets Lower

First Look

Major indices are pointed lower before the open Friday. Tensions continue to escalate in the Persian Gulf as the U.S. is blaming Iran for the recent attacks on two oil tankers in the Gulf of Oman. Iran has denied involvement in the wave of attacks on oil transport vessels that has seen six ships attacked since the beginning of May. While there is no conclusive evidence, the U.S. released a series of images of what they deem to be an Islamic Revolutionary Guard Corps patrol boat removing unexploded mines. Oil prices initially spiked Thursday after the attacks. Prices of crude have since fallen, heading to a weekly drop in price as the trade war lingers, counter-balancing supply concerns with a drop in demand. The Dow Jones is down -0.14%, the S&P 500 is down -0.24%, the Nasdaq is down -0.68%.

Today's market outlook is Neutral

Silence is argument carried out by other means.
Che Guevara

Stocks on the Move

Newmont Goldcorp Corp (NEM), Kraft Heinz Co (KHC) and Eli Lilly And Co (LLY) are moving higher this morning, while Broadcom Inc (AVGO), Xilinx, Inc. (XLNX) and Analog Devices, Inc. (ADI) are headed lower. Louisiana-Pacific Corporation (LPX), Avadel Pharmaceuticals PLC (AVDL) and Harmonic Inc (HLIT) were upgraded by analysts this morning, while Broadcom Inc (AVGO), Spirit AeroSystems Holdings, Inc. (SPR) and Ashland Global Holdings Inc (ASH) were downgraded.

International Markets

Stocks in Asia are mixed. The Nikkei 225 is up 0.4%, the Australia ASX All Ordinaries is up 0.22%, the Hang Seng is down -0.65% the Mumbai Sensex is down -0.73% and the Shanghai SE Composite Index is down -0.99%. Stocks in Europe are down. The DAX is down -0.85%, the Euro Stoxx 50 is down -0.66%, the FTSE 100 is down -0.54% and the CAC 40 is down -0.49%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is down -0.16 at 52.12 per barrel. Brent crude is up 0.07 at 61.38 per barrel. Natural Gas is down -0.02 at 2.34. Precious metals are up this morning. Gold is up 11.92 at 1354.23 per ounce. Platinum is up 2.01 at 814.68 while silver is up 0.16 at 15.05. 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, 877,774 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 548,758 put contracts. The single-session put/call was 0.63 while the 20-day moving average is now at 0.68.

Earnings Expected Today

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Today's Economic Calendar

What's Happening Period Release Time
Retail Sales May 08:30
Industrial Production May 09:15
Capacity Utilization May 09:15
Univ. of Michigan Consumer Sentiment - Prelim. Jun 10:00
Business Inventories Apr 10:00

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