Morning Update: Stocks rise after Trump, Xi agree to further talks

First Look

Stocks are higher in the U.S. ahead of the open Monday. President Trump and Chinese Premier Xi reached an agreement to hold further talks on trade at the G-20 summit over the weekend, but the rally is likely more about the rest of the deal. The U.S. will not impose new tariffs, or raise existing tariffs for 90 days, pushing back what had been a Jan. 1 deadline. Meanwhile, China has reportedly agreed to buy an unspecified amount of agricultural and energy products from the U.S. Oil is higher this morning after the Canadian province of Alberta announced some productions cuts, Qatar said it is leaving OPEC to focus on natural gas production and Saudi Arabia and Russia agreed to extend their agreement to manage the oil market. Options traders, particularly those with short-term positions, will notice a decrease in time value (theta) due to the cancellation of Wednesday’s trading session to honor President George H.W. Bush, who died Friday. The Nasdaq is up 2.16%, the Dow Jones is up 1.76%, the S&P is up 1.47%.

Today's market outlook is Neutral

I am not interested in the past, except as the road to the future.
Gianni Versace

Stocks on the Move

DISCOVERY COMMUNICATIONS INC. Common Stock (DISCA), TechnipFMC PLC (FTI) and Wynn Resorts, Limited (WYNN) are moving higher this morning, while PepsiCo, Inc. (PEP), Verizon Communications Inc. (VZ) and MONDELEZ INTERNATIONAL INC Common Stock (MDLZ) are headed lower. Timken Co (TKR), Caterpillar Inc. (CAT) and Roku Inc (ROKU) were upgraded by analysts this morning, while American Tower Corp (AMT), Dicks Sporting Goods Inc (DKS) and Costco Wholesale Corporation (COST) were downgraded.

International Markets

Stocks in Asia are up. The Shanghai SE Composite Index is up 2.57%, the Hang Seng is up 2.45%, the Australia ASX All Ordinaries is up 1.86% the Nikkei 225 is up 1% and the Mumbai Sensex is up 0.13%. In Europe stocks are up. The DAX is up 2.14%, the FTSE 100 is up 1.59%, the Euro Stoxx 50 is up 1.39% and the CAC 40 is up 0.95%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is up 1.96 at 52.89 per barrel. Brent crude is up 1.97 at 61.43 per barrel. Natural Gas is down -0.24 at 4.37. Precious metals are up this morning. Gold is up 11.04 at 1231.56 per ounce. Platinum is up 13.17 at 811.27 while silver is up 0.27 at 14.46. 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, 999,559 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 526,506 put contracts. The single-session put/call was 0.53 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
ISM Index Nov 10:00
Construction Sales Oct 10:00

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