Morning Update: Stocks slide as trade optimism fades, yield curve flattens

First Look

Yesterday’s trade-deal optimism is fading as the specifics markets were betting on to push things higher either disappointed or failed to materialize altogether. U.S. stocks are lower ahead of the bell Tuesday as reality about President Trump’s trade deal sets in. Investors have a new worry to focus on as parts of the Treasury yield curve inverted yesterday. While it was not the spread between the 2-year and the 10-year, the inversion of which is frequently thought to be a harbinger of recession, that spread is also flatter than it has been for some time. The S&P is down -0.21%, the Dow Jones is down -0.32%, the Nasdaq is down -0.34%.

Today's market outlook is Neutral

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Stocks on the Move

Nucor Corporation (NUE), Newfield Exploration Co. (NFX) and AutoZone, Inc. (AZO) are moving higher this morning, while Dollar General Corp. (DG), Symantec Corporation (SYMC) and Tiffany & Co. (TIF) are headed lower. Canadian Natural Resources Ltd (CNQ), Waste Management, Inc. (WM) and Keurig Dr Pepper Inc (KDP) were upgraded by analysts this morning, while Apple Inc. (AAPL), Intel Corporation (INTC) and Fastenal Company (FAST) were downgraded.

International Markets

Stocks in Asia are mixed. The Shanghai SE Composite Index is up 0.42%, the Hang Seng is up 0.29%, the Mumbai Sensex is down -0.29% the Australia ASX All Ordinaries is down -1% and the Nikkei 225 is down -2.39%. Stocks in Europe are down. The FTSE 100 is down -0.71%, the DAX is down -0.58%, the CAC 40 is down -0.45% and the Euro Stoxx 50 is down -0.37%.

Futures and Currencies

Energy futures are up today. The price for West Texas Intermediate crude oil is up 0.95 at 53.9 per barrel. Brent crude is up 1.24 at 62.93 per barrel. Natural Gas is up 0.13 at 4.47. Precious metals are up this morning. Gold is up 9.46 at 1240.13 per ounce. Platinum is up 0.48 at 808.12 while silver is up 0.14 at 14.64. The dollar is down compared to the major currencies today. The greenback is down against the euro, down against the Yen and down against the Pound.

Put/Call Ratio

Yesterday, 1,077,314 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 609,209 put contracts. The single-session put/call was 0.57 while the 20-day moving average is now at 0.68.

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Today's Economic Calendar

What's Happening Period Release Time
Auto Sales Nov 14:00
Truck Sales Nov 14:00

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