Morning Update: Markets Point Lower

First Look

Major indices are lower in the pre-market Wednesday. Investors remain cautious ahead of the next round of trade negotiations scheduled to start tomorrow in Washington. Fed Vice Chairman Richard Clarida mirrored Jerome Powell’s recent statements on monetary policy amid growing speculation that the central bank will lower interest rates to boost inflation, saying there is no strong case to move rates in either direction with the U.S. economy being in a “good place”. Iran is threatening to resume uranium enrichment in 60 days as the U.S. positions an aircraft carrier and bomber group in the region. Uranium enrichment by the country will break the 2015 nuclear accords that the U.S. pulled out of last year. Iran is seeking to have sanctions lifted, giving it the ability to sell oil internationally and resume trade within the global economy. The Dow Jones is down -0.44%, the S&P 500 is down -0.52%, the Nasdaq is down -0.63%.

Today's market outlook is Neutral

Harry Truman
It is amazing what you can accomplish if you do not care who gets the credit.
Harry S. Truman

Stocks on the Move

Electronic Arts Inc. (EA), Qorvo Inc (QRVO) and McKesson Corporation (MCK) are moving higher this morning, while Tripadvisor Inc Common Stock (TRIP), The Western Union Company (WU) and Microchip Technology Inc. (MCHP) are headed lower. Mosaic Co (MOS), Qorvo Inc (QRVO) and US Foods Holding Corp (USFD) were upgraded by analysts this morning, while Broadridge Financial Solutions, Inc. (BR), United States Steel Corporation (X) and The Western Union Company (WU) were downgraded.

International Markets

Stocks in Asia are down. The Nikkei 225 is down -1.46%, the Mumbai Sensex is down -1.27%, the Hang Seng is down -1.17% the Shanghai SE Composite Index is down -1.12% and the Australia ASX All Ordinaries is down -0.5%.In Europe stocks are mixed. The DAX is up 0.13%, the Euro Stoxx 50 is down -0.12%, the CAC 40 is down -0.17% and the FTSE 100 is down -0.2%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is up 0.01 at 61.41 per barrel. Brent crude is down -0.12 at 69.76 per barrel. Natural Gas is up 0.02 at 2.56. Precious metals are mixed this morning. Gold is up 4.77 at 1289.2 per ounce. Platinum is down -2.81 at 267.59 while silver is flat at 14.92. The dollar is mixed compared to the major currencies today. The greenback is down against the euro, down against the Yen and up against the Pound.

Put/Call Ratio

Yesterday, 1,062,079 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 727,217 put contracts. The single-session put/call was 0.68 while the 20-day moving average is now at 0.6.

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Today's Economic Calendar

What's Happening Period Release Time
MBA Mortgage Applications Index 05/04 07:00
EIA Crude Oil Inventories 05/04 10:30

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