Morning Update: Tariffs, Disney earnings drag on market

First Look

Stocks are trading in the red ahead of the open Wednesday. An earnings miss from Disney (DIS) and the announcement that tariffs of 25% will be applied to $16 billion of Chinese goods starting on Aug. 23. Shares of Tesla Motors (TSLA) are down this morning after founder and CEO Elon Musk tweeted yesterday that he’s thinking of taking the company private. Musks tweet, and subsequent blog post contained few details, but raise a lot of questions. Analyst reaction has been mixed, but generally carries more skepticism about the likelihood of a deal going through than is typical after an M&A announcement. The Dow Jones is down -0.05%, the S&P 500 is down -0.09%, the Nasdaq is down -0.22%.

Today's market outlook is Neutral

Buy the ticket, take the ride.
Hunter S. Thompson

Stocks on the Move

CVS Health Corp (CVS), Michael Kors Holdings Ltd (KORS) and Albemarle Corporation (ALB) are moving higher this morning, while Cimarex Energy Co (XEC), Regeneron Pharmaceuticals Inc (REGN) and Southern Co (SO) are headed lower. Signature Bank (SBNY), Cyberark Software Ltd (CYBR) and Bristol-Myers Squibb Co (BMY) were upgraded by analysts this morning, while Hostess Brands Inc (TWNK), Mallinckrodt PLC (MNK) and DENTSPLY SIRONA Inc (XRAY) were downgraded.

International Markets

Stocks in Asia are mixed. The Shanghai SE Composite Index is up 1.27%, the Mumbai Sensex is up 0.59%, the Hang Seng is up 0.39% the Australia ASX All Ordinaries is up 0.22% and the Nikkei 225 is down -0.08%. In Europe stocks are mixed. The FTSE 100 is up 0.74%, the DAX is up 0.15%, the CAC 40 is down -0.12% and the Euro Stoxx 50 is down -0.15%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is down -0.73 at 68.44 per barrel. Brent crude is down -0.47 at 74.18 per barrel. Natural Gas is up 0.01 at 2.91. Precious metals are down this morning. Gold is down -3.73 at 1207.24 per ounce. Platinum is down -5.23 at 824.22 while silver is down -0.05 at 15.33. 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, 963,316 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 617,763 put contracts. The single-session put/call was 0.64 while the 20-day moving average is now at 0.63.

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Today's Economic Calendar

What's Happening Period Release Time
MBA Mortgage Applications Index 08/04 07:00
Crude Inventories 08/04 10:30

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