Morning Update: Stocks Higher on Apparent Deal to Avert Shutdown

First Look

Major indices are pointed higher ahead of the open Tuesday morning. Congressional leaders reached a deal in Washington that could potentially avoid another partial government shutdown. President Trump will have to sign off on the funding bill, which only includes $1.375 billion in border wall funding and is considerably less that the $5.7 billion requested. White House officials said that President Trump still wants to meet with Chinese President Xi Jinping ahead of the Mar. 1 deadline, saying that the president wants to make a deal. It is rumored that if enough progress can be made this week during negotiations in Beijing, the deadline could be extended in order to make a deal and avoid additional tariffs on $200 billion in Chinese goods. The Nasdaq is up 0.84%, the Dow Jones is up 0.79%, the S&P 500 is up 0.73%.

Today's market outlook is Neutral

I have not failed. I've just found 10,000 ways that won't work.
Thomas Edison

Stocks on the Move

Coty Inc (COTY), Electronic Arts Inc. (EA) and Under Armour Inc Class C (UA) are moving higher this morning, while Molson Coors Brewing Co Class B (TAP), TAKE-TWO INTERACTIVE SOFTWARE, INC Common Stock (TTWO) and Gilead Sciences, Inc. (GILD) are headed lower. DHT Holdings Inc (DHT), PETROLEO BRASIL/ADR (PBR) and Rio Tinto plc ADR Common Stock (RIO) were upgraded by analysts this morning, while Goldcorp Inc. (GG), Cisco Systems, Inc. (CSCO) and Gilead Sciences, Inc. (GILD) were downgraded.

International Markets

Stocks in Asia are mixed. The Nikkei 225 is up 2.61%, the Shanghai SE Composite Index is up 0.68%, the Australia ASX All Ordinaries is up 0.33% the Hang Seng is up 0.11% and the Mumbai Sensex is down -0.41%. In Europe stocks are up. The DAX is up 1.11%, the CAC 40 is up 0.9%, the Euro Stoxx 50 is up 0.84% and the FTSE 100 is up 0.04%.

Futures and Currencies

Energy futures are up today. The price for West Texas Intermediate crude oil is up 1.23 at 53.64 per barrel. Brent crude is up 1.42 at 62.93 per barrel. Natural Gas is up 0.03 at 2.67. Precious metals are up this morning. Gold is up 6.5 at 1314.62 per ounce. Platinum is up 2.04 at 788.75 while silver is up 0.09 at 15.78. The dollar is mixed compared to the major currencies today. The greenback is down against the euro, up against the Yen and down against the Pound.

Put/Call Ratio

Yesterday, 768,348 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 464,223 put contracts. The single-session put/call was 0.60 while the 20-day moving average is now at 0.62.

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Today's Economic Calendar

What's Happening Period Release Time
NFIB Small Business Optimism Index Jan 06:00
JOLTS - Job Openings Dec 10:00

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