Morning Update: Stocks rise on trade talk hopes

First Look

Stocks are higher Friday morning ahead of the opening bell. Optimism about trade negotiations with China set to begin next week seems to be the driver. The government remains partially closed with no real progress yet on resolving the impasse over funding for President Trump’s border wall. The monthly jobs report showed the economy adding 312,000 non-farm jobs in December, clobbering estimates for 180,000. November and October’s numbers were also revised upward. The unemployment rate rose to 3.9% as more people joined the workforce. The Dow Jones is up 1.38%, the S&P 500 is up 1.23%, the Nasdaq is up 1.18%.

Today's market outlook is Neutral

To be a good loser is to learn how to win.
Carl Sandburg

Stocks on the Move

Netflix, Inc. (NFLX), Intel Corporation (INTC) and General Motors Company (GM) are moving higher this morning, while Fortinet Inc (FTNT), Cooper Companies Inc (COO) and Duke Energy Corp (DUK) are headed lower. Masco Corp (MAS), Expedia Group Inc (EXPE) and Honeywell International Inc. (HON) were upgraded by analysts this morning, while Southwestern Energy Company (SWN), EOG Resources Inc (EOG) and Analog Devices, Inc. (ADI) were downgraded.

International Markets

Stocks in Asia are mixed. The Hang Seng is up 2.24%, the Shanghai SE Composite Index is up 2.05%, the Australia ASX All Ordinaries is down -0.31% the Mumbai Sensex is down -1.05% and the Nikkei 225 is down -2.26%. In Europe stocks are up. The DAX is up 1.79%, the Euro Stoxx 50 is up 1.52%, the CAC 40 is up 1.29% and the FTSE 100 is up 1.28%.

Futures and Currencies

Energy futures are up today. The price for West Texas Intermediate crude oil is up 0.62 at 47.71 per barrel. Brent crude is up 0.79 at 56.74 per barrel. Natural Gas is up 0.05 at 2.99. Precious metals are mixed this morning. Gold is down -4.44 at 1289.84 per ounce. Platinum is up 1.3 at 799.05 while silver is down -0.01 at 15.79. 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, 855,141 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 622,457 put contracts. The single-session put/call was 0.73 while the 20-day moving average is now at 0.75.

Earnings Expected Today

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  • Day's Range:
    $291.47 - $293.65
  • 52-week Range:
    $294.95 - $233.76
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  • Day's Range:
    $264.63 - $266.21
  • 52-week Range:
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  • Day's Range:
    $185.57 - $187.53
  • 52-week Range:
    $191.32 - $143.46

Today's Economic Calendar

What's Happening Period Release Time
Nonfarm Payrolls Dec 08:30
Avg. Hourly Earnings Dec 08:30
Average Workweek Dec 08:30
Unemployment Rate Dec 08:30
EIA Natural Gas Inventories 12/29 10:30
EIA Crude Oil Inventories 12/29 11:00

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