Morning Update: Stocks Point Lower

First Look

Major indices are pointed lower ahead of the open Wednesday. President Trump is taking responsibility for the current state of trade negotiations with China, saying he is the one “holding up the deal”. Trump added that he is not interested in completing a deal unless China honors term negotiated earlier this year. Trump has accused China of backtracking on terms of the previous deal, causing negotiations between the two countries to cease. Trump is still planning to meet with Chinese President Jinping Xi at the G-20 summit this month in Japan and has threatened additional tariffs if Xi fails to show. China has not confirmed President Xi’s attendance to the G-20 summit, with the country repeatedly saying it will not be bullied into negotiations. Hong Kong remains on edge, with protesters blocking major roads in the downtown financial district. Many of Hong Kong’s workers may walk off the job in protest to controversial legislation that would allow citizens to be extradited to China. Police have used tear gas and rubber bullets, declaring the situation a riot zone. Protests could last through June 20, when lawmakers will be casting final votes on the controversial bill. The Dow Jones is down -0.26%, the S&P 500 is down -0.27%, the Nasdaq is down -0.44%.

Today's market outlook is Neutral

Perfection is not attainable, but if we chase perfection we can catch excellence.
Vince Lombardi

Stocks on the Move

Juniper Networks, Inc. (JNPR), Newmont Goldcorp Corp (NEM) and Realty Income Corp (O) are moving higher this morning, while QUALCOMM, Inc. (QCOM), Micron Technology, Inc. (MU) and Western Digital Corp (WDC) are headed lower. Juniper Networks, Inc. (JNPR), Brinker International, Inc. (EAT) and Commscope Holding Company Inc (COMM) were upgraded by analysts this morning, while Dave & Buster’s Entertainment Inc (PLAY), Cisco Systems, Inc. (CSCO) and Beyond Meat Inc (BYND) were downgraded.

International Markets

Stocks in Asia are mixed. The Australia ASX All Ordinaries is up 0.07%, the Nikkei 225 is down -0.35%, the Mumbai Sensex is down -0.48% the Shanghai SE Composite Index is down -0.56% and the Hang Seng is down -1.73%. Stocks in Europe are down. The FTSE 100 is down -0.78%, the DAX is down -0.76%, the Euro Stoxx 50 is down -0.59% and the CAC 40 is down -0.55%.

Futures and Currencies

Energy futures are down today. The price for West Texas Intermediate crude oil is down -1.41 at 51.86 per barrel. Brent crude is down -1.54 at 60.74 per barrel. Natural Gas is flat at 2.4. Precious metals are up this morning. Gold is up 7.98 at 1334.82 per ounce. Platinum is up 1.17 at 816.54 while silver is up 0.03 at 14.77. The dollar is mixed compared to the major currencies today. The greenback is up against the euro, down against the Yen and down against the Pound.

Put/Call Ratio

Yesterday, 939,542 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 614,894 put contracts. The single-session put/call was 0.65 while the 20-day moving average is now at 0.68.

Earnings Expected Today

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    $284.71 - $289.33
  • 52-week Range:
    $302.23 - $233.76
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    $256.87 - $259.25
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    $184.10 - $185.95
  • 52-week Range:
    $195.55 - $143.46

Today's Economic Calendar

What's Happening Period Release Time
MBA Mortgage Index 06/08 07:00
CPI May 08:30
EIA Crude Oil Inventories 06/08 10:30
Treasury Budget May 14:00

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