Morning Update: North American Trade Talks Continue

First Look

Major equity indices are pointed higher head of the bell Thursday morning. Bond yields are continuing to recover some of the ground they’ve lost recently as traders try to price in a higher likelihood of an interest rate cut from the Federal Reserve. The trade picture remains muddy with officials from the U.S. and Mexico continuing to talk after President Trump said not enough progress was made in talks yesterday to delay the implementation of a 5% tariff on goods imported from Mexico. The Nasdaq is up 0.38%, the S&P 500 is up 0.31%, the Dow Jones is up 0.29%.

Today's market outlook is Neutral

All money is a matter of belief.
Adam Smith

Stocks on the Move

J M Smucker Co (SJM), Advanced Micro Devices, Inc. (AMD) and Valero Energy Corporation (VLO) are moving higher this morning, while Constellation Brands, Inc. Class A (STZ), General Motors Company (GM) and Ford Motor Company (F) are headed lower. Goodyear Tire & Rubber Co (GT), Advanced Micro Devices, Inc. (AMD) and Valero Energy Corporation (VLO) were upgraded by analysts this morning, while Cloudera Inc (CLDR), Orange SA (ORAN) and Fiat Chrysler Automobiles NV (FCAU) were downgraded.

International Markets

Stocks in Asia are mixed. The Australia ASX All Ordinaries is up 0.35%, the Hang Seng is up 0.19%, the Nikkei 225 is down -0.01% the Shanghai SE Composite Index is down -1.17% and the Mumbai Sensex is down -1.38%. In Europe stocks are up. The Euro Stoxx 50 is up 0.53%, the FTSE 100 is up 0.41%, the CAC 40 is up 0.38% and the DAX is up 0.28%.

Futures and Currencies

Energy futures are up today. The price for West Texas Intermediate crude oil is up 0.49 at 52.17 per barrel. Brent crude is up 0.69 at 61.32 per barrel. Natural Gas is flat at 2.37. Precious metals are up this morning. Gold is up 5.98 at 1336.3 per ounce. Platinum is up 3.05 at 807.81 while silver is up 0.16 at 14.95. 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, 862,138 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 588,704 put contracts. The single-session put/call was 0.68 while the 20-day moving average is now at 0.69.

Earnings Expected Today

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Today's Economic Calendar

What's Happening Period Release Time
Initial Claims 06/01 08:30
Continuing Claims 05/24 08:30
Trade Balance Apr 08:30
Productivity - Rev. Q1 08:30
Unit Labor Costs - Rev. Q1 08:30
EIA Natural Gas Inventories 06/01 10:30

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