Morning Update: Stocks Sink

First Look

Major indices are down before the bell Thursday morning. In minutes released Wednesday afternoon, the Federal Reserve board viewed the recent dip in inflation as temporary and reiterated that a patient approach to changes in monetary policy would remain appropriate for “some time”. Chinese officials are still seeking additional talks to resolve the ongoing trade war with the U.S. but continue to weigh their options on how to respond to the White House’s decision to blacklist many Chinese technology companies. Treasury Secretary Steven Mnuchin said it is still likely President Trump will meet with Chinese President Xi Jinping at the G-20 summit in Japan at the end of June. British Prime Minister Theresa May continues to face political pressure after a senior Cabinet minister submitted her resignation yesterday. There is growing speculation that May will resign after the European elections being held in the U.K. today. The S&P 500 is down -0.86%, the S&P 500 is down -0.86%, the Nasdaq is down -1.17%.

Today's market outlook is Neutral

It has long been an axiom of mine that the little things are infinitely the most important.
Arthur Conan Doyle

Stocks on the Move

L Brands Inc (LB), Medtronic PLC (MDT) and Best Buy Co Inc (BBY) are moving higher this morning, while Fastenal Company (FAST), NetApp Inc. (NTAP) and QUALCOMM, Inc. (QCOM) are headed lower. Target Corporation (TGT), Philip Morris International Inc. (PM) and Centurylink Inc (CTL) were upgraded by analysts this morning, while Chubb Ltd (CB), Expedia Group Inc (EXPE) and QUALCOMM, Inc. (QCOM) were downgraded.

International Markets

Stocks in Asia are down. The Hang Seng is down -1.58%, the Shanghai SE Composite Index is down -1.36%, the Mumbai Sensex is down -0.76% the Nikkei 225 is down -0.62% and the Australia ASX All Ordinaries is down -0.21%.Stocks in Europe are down. The CAC 40 is down -1.5%, the CAC 40 is down -1.5%, the Euro Stoxx 50 is down -1.43% and the FTSE 100 is down -1.24%.

Futures and Currencies

Energy futures are down today. The price for West Texas Intermediate crude oil is down -0.97 at 60.45 per barrel. Brent crude is down -1.15 at 69.84 per barrel. Natural Gas is down -0.02 at 2.56. Precious metals are mixed this morning. Gold is up 4.79 at 1278.13 per ounce. Platinum is down -4.54 at 800.2 while silver is up 0.02 at 14.47. The dollar is mixed compared to the major currencies today. The greenback is up against the euro, down against the Yen and up against the Pound.

Put/Call Ratio

Yesterday, 841,043 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 607,282 put contracts. The single-session put/call was 0.72 while the 20-day moving average is now at 0.67.

Already a member?

Login to see your daily Morning Action trade idea.

Morning Action Trades

Receive a Morning Action trade idea every market day right here in the Morning Update. Also get our Stocks to Watch newsletter every Saturday with trade ideas.

Become A Member

  • Last Price:
  • Previous Close:
  • Day's Range:
    $300.68 - $302.11
  • 52-week Range:
    $302.46 - $233.76
  • Last Price:
  • Previous Close:
  • Day's Range:
    $272.19 - $273.26
  • 52-week Range:
    $273.99 - $216.97
  • Last Price:
  • Previous Close:
  • Day's Range:
    $192.29 - $193.40
  • 52-week Range:
    $195.55 - $143.46

Today's Economic Calendar

What's Happening Period Release Time
Initial Claims 05/18 08:30
Continuing Claims 05/11 08:30
New Home Sales Apr 10:00
EIA Natural Gas Inventories 05/18 10:30

All stocks and options shown are examples only. These are not recommendations to buy or sell any security and they do not represent in any way a positive or negative outlook for any security. Potential returns do not take into account your trade size, brokerage commissions, taxes or our subscription fees which will affect actual investment returns. Stocks and options involve risk and are not suitable for all investors and investing in options carries substantial risk. Prior to buying or selling options, a person must receive a copy of Characteristics and Risks of Standardized Options available at Privacy policy available upon request.