Morning Update: Stocks rise on China trade optimism

First Look

Stocks are modestly higher ahead of the opening bell Wednesday morning. Trade talks with China wrapped up, for now, on a optimistic note after extending what was originally scheduled to be a two-day session for an extra day. The next round of talks is expected to be between China’s Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer. With reports starting to circulate that President Trump wants a deal with China done quickly to boost the stock market, it will be interesting to see how things progress once Lighthizer, traditionally a hawk on China policy, joins the negotiations. The Nasdaq is up 0.51%, the Dow Jones is up 0.49%, the S&P 500 is up 0.41%.

Today's market outlook is Neutral

A man is not finished when he is defeated. He is finished when he quits.
Richard M. Nixon

Stocks on the Move

TechnipFMC PLC (FTI), Skyworks Solutions Inc (SWKS) and Akamai Technologies, Inc. (AKAM) are moving higher this morning, while Constellation Brands, Inc. Class A (STZ), Tyson Foods, Inc. (TSN) and Expedia Group Inc (EXPE) are headed lower. Diebold Nixdorf Inc (DBD), Nike Inc (NKE) and Morgan Stanley (MS) were upgraded by analysts this morning, while United States Steel Corporation (X), Five Below Inc (FIVE) and Booking Holdings Inc (BKNG) were downgraded.

International Markets

Stocks in Asia are up. The Hang Seng is up 2.27%, the Nikkei 225 is up 1.1%, the Australia ASX All Ordinaries is up 0.95% the Shanghai SE Composite Index is up 0.71% and the Mumbai Sensex is up 0.36%. In Europe stocks are up. The CAC 40 is up 1.33%, the DAX is up 1.24%, the Euro Stoxx 50 is up 1.02% and the FTSE 100 is up 0.95%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is up 1.22 at 51 per barrel. Brent crude is up 1.26 at 59.98 per barrel. Natural Gas is down -0.02 at 2.95. Precious metals are mixed this morning. Gold is down -1.67 at 1283.72 per ounce. Platinum is up 5.86 at 825.26 while silver is down -0.01 at 15.71. 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, 922,520 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 583,097 put contracts. The single-session put/call was 0.63 while the 20-day moving average is now at 0.72.

Earnings Expected Today

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Today's Economic Calendar

What's Happening Period Release Time
MBA Mortgage Applications Index 01/05 07:00
EIA Crude Oil Inventories 01/05 10:30
FOMC Minutes Dec 14:00

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