Morning Update: Iran Tensions Continue to Mount

First Look

Markets are slightly higher ahead of the open Monday. U.S. Secretary of State Mike Pompeo said in an interview Sunday that the Trump administration is considering a “full range of options” in dealing with Iran after saying there is “no doubt” the country was responsible for attacks on shipping vessels in the Strait of Hormuz. Pompeo added that the U.S. will take any necessary measures to guarantee safe commercial navigation in the region. Iran said it will surpass the uranium stockpile limit agreed upon under the 2015 nuclear deal within the next 10 days. Under the terms of the deal, Iran can stockpile no more than 660 pounds of low-grade uranium. After the United States withdrew from the nuclear deal and imposed sanctions on the country, Iran said it plans to quadruple its production of low-enriched uranium and would surpass the 660-pound limit by June 27. The Nasdaq is up 0.22%, the S&P 500 is up 0.1%, the Dow Jones is up 0.08%.

Today's market outlook is Neutral

Lesser artists borrow, great artists steal.
Igor Stravinsky

Stocks on the Move

Mosaic Co (MOS), Facebook, Inc. Common Stock (FB) and Kellogg Company (K) are moving higher this morning, while Seagate Technology PLC (STX), Marathon Oil Corporation (MRO) and AMCOR/PAR VTG FPD 0.01 (AMCR) are headed lower. Mosaic Co (MOS), Symantec Corporation (SYMC) and Deere & Company (DE) were upgraded by analysts this morning, while Kinder Morgan Inc (KMI), Dow Inc (DOW) and Walt Disney Co (DIS) were downgraded.

International Markets

Stocks in Asia are mixed. The Hang Seng is up 0.4%, the Shanghai SE Composite Index is up 0.2%, the Nikkei 225 is up 0.03% the Australia ASX All Ordinaries is down -0.36% and the Mumbai Sensex is down -1.25%. In Europe stocks are mixed. The CAC 40 is up 0.21%, the Euro Stoxx 50 is up 0.08%, the DAX is down -0.03% and the FTSE 100 is down -0.14%.

Futures and Currencies

Energy futures are down today. The price for West Texas Intermediate crude oil is down -0.55 at 51.96 per barrel. Brent crude is down -0.67 at 61.34 per barrel. Natural Gas is down -0.01 at 2.38. Precious metals are down this morning. Gold is down -5.13 at 1336.57 per ounce. Platinum is down -11.18 at 793.73 while silver is down -0.1 at 14.81. The dollar is mixed compared to the major currencies today. The greenback is down against the euro, up against the Yen and flat against the Pound.

Put/Call Ratio

Yesterday, 904,100 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 569,657 put contracts. The single-session put/call was 0.63 while the 20-day moving average is now at 0.68.

Earnings Expected Today

Already a member?

Login to see your daily Morning Action trade idea.

Morning Action Trades

Receive a Morning Action trade idea every market day right here in the Morning Update. Also get our Stocks to Watch newsletter every Saturday with trade ideas.

Become A Member

  • Last Price:
  • Previous Close:
  • Day's Range:
    $297.92 - $299.16
  • 52-week Range:
    $302.63 - $233.76
  • Last Price:
  • Previous Close:
  • Day's Range:
    $269.40 - $270.56
  • 52-week Range:
    $273.99 - $216.97
  • Last Price:
  • Previous Close:
  • Day's Range:
    $192.43 - $193.53
  • 52-week Range:
    $195.55 - $143.46

Today's Economic Calendar

What's Happening Period Release Time
Empire State Manufacturing Jun 08:30
Net Long-Term TIC Flows Apr 16:00

All stocks and options shown are examples only. These are not recommendations to buy or sell any security and they do not represent in any way a positive or negative outlook for any security. Potential returns do not take into account your trade size, brokerage commissions, taxes or our subscription fees which will affect actual investment returns. Stocks and options involve risk and are not suitable for all investors and investing in options carries substantial risk. Prior to buying or selling options, a person must receive a copy of Characteristics and Risks of Standardized Options available at Privacy policy available upon request.