Morning Update: Stocks Lose Ground Ahead of the Open

First Look

Stocks are down in the pre-market Wednesday. According to reports, President Trump had been considering plans to prevent Huawei Technologies from doing business with American companies for months, but only implemented them when trade negotiations between the U.S and China began to stall. The White House is considering blacklisting an additional five Chinese companies that manufacture surveillance equipment. British Prime Minister Theresa May gave a speech Tuesday aimed at gaining favor for her new Brexit deal, but support for May’s plans seems to be on the decline ahead of a Parliament vote. The Federal Reserve will be releasing meeting minutes this afternoon, and investors will be watching for any hints about changes to monetary policy as concern for global economic growth is on the rise. The Dow Jones is down -0.3%, the S&P 500 is down -0.37%, the Nasdaq is down -0.59%.

Today's market outlook is Neutral

The word 'happy' would lose its meaning if it were not balanced by sadness.
Carl Jung

Stocks on the Move

Target Corporation (TGT), PVH Corp (PVH) and Advance Auto Parts, Inc. (AAP) are moving higher this morning, while QUALCOMM, Inc. (QCOM), Nordstrom, Inc. (JWN) and Lowe’s Companies, Inc. (LOW) are headed lower. Legg Mason Inc (LM), Diamond Offshore Drilling Inc (DO) and Telefonaktiebolaget LM Ericsson (ERIC) were upgraded by analysts this morning, while Expedia Group Inc (EXPE), Activision Blizzard, Inc. (ATVI) and Sasol Limited (SSL) were downgraded.

International Markets

Stocks in Asia are mixed. The Mumbai Sensex is up 0.36%, the Australia ASX All Ordinaries is up 0.21%, the Hang Seng is up 0.18% the Nikkei 225 is up 0.05% and the Shanghai SE Composite Index is down -0.49%. In Europe stocks are mixed. The FTSE 100 is up 0.13%, the DAX is down -0.27%, the CAC 40 is down -0.34% and the Euro Stoxx 50 is down -0.39%.

Futures and Currencies

Energy futures are down today. The price for West Texas Intermediate crude oil is down -0.6 at 62.53 per barrel. Brent crude is down -0.33 at 71.85 per barrel. Natural Gas is down -0.02 at 2.6. Precious metals are mixed this morning. Gold is up 1.6 at 1276.28 per ounce. Platinum is down -6.52 at 810.16 while silver is up 0.04 at 14.45. 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, 1,074,402 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 703,725 put contracts. The single-session put/call was 0.65 while the 20-day moving average is now at 0.66.

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Today's Economic Calendar

What's Happening Period Release Time
MBA Mortgage Applications Index 05/18 07:00
EIA Crude Oil Inventories 05/18 10:30
FOMC Minutes May 14:00

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