Stocks Gain After Trump Delays Tariff Increase

First Look

Markets are higher ahead of the open Thursday after President Trump announced a two-week delay for a 5% tariff increase on $250 billion in Chinese goods. The increase from 25% to 30% was scheduled for October 1. China is considering allowing companies to resume purchases of U.S. agricultural products, including soybeans and pork. President Trump is also reportedly considering easing sanctions on Iran in hopes to meet with Iranian President Hassan Rouhani at the United Nations General Assembly in September. The recent resignation of National Security Advisor John Bolton, who opposed the idea, increases the chances of Trump meeting with the Iranian president, but there is no confirmation that the Iranians would agree to such talks while strong sanctions remain in place. The Nasdaq is up 0.59%, the Dow Jones is up 0.36%, the S&P 500 is up 0.32%.

Today's market outlook is Neutral

I can't change the direction of the wind, but I can adjust my sails to always reach my destination.
Jimmy Dean

Stocks on the Move

LKQ Corporation (LKQ), Activision Blizzard, Inc. (ATVI) and Freeport-McMoRan Inc (FCX) are moving higher this morning, while DXC Technology Co (DXC), Baker Hughes A GE Co (BHGE) and Oracle Corporation (ORCL) are headed lower. Paypal Holdings Inc (PYPL), Blueprint Medicines Corp (BPMC) and Vodafone Group Plc (VOD) were upgraded by analysts this morning, while Square Inc (SQ), Lloyds Banking Group PLC ADR (LYG) and InterContinental Hotels Group PLC (IHG) were downgraded.

International Markets

Stocks in Asia are mixed. The Shanghai SE Composite Index is up 0.75%, the Shanghai SE Composite Index is up 0.75%, the Australia ASX All Ordinaries is up 0.21% the Hang Seng is down -0.23% and the Mumbai Sensex is down -0.45%. In Europe stocks are up. The Euro Stoxx 50 is up 0.68%, the DAX is up 0.63%, the CAC 40 is up 0.51% and the FTSE 100 is up 0.22%.

Futures and Currencies

Energy futures are down today. The price for West Texas Intermediate crude oil is down -0.55 at 55.21 per barrel. Brent crude is down -0.73 at 60.08 per barrel. Natural Gas is down -0.02 at 2.53. Precious metals are up this morning. Gold is up 17.44 at 1514.64 per ounce. Platinum is up 12.31 at 956.81 while silver is up 0.29 at 18.46. The dollar is mixed compared to the major currencies today. The greenback is up against the euro, down against the Yen and down against the Pound.

Put/Call Ratio

Yesterday, 1,308,692 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 705,249 put contracts. The single-session put/call was 0.54 while the 20-day moving average is now at 0.67.

Earnings Expected Today

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Today's Economic Calendar

What's Happening Period Release Time
CPI Aug 08:30
Initial Claims 09/07 08:30
Continuing Claims 08/31 08:30
EIA Natural Gas Inventories 09/07 10:30
Treasury Budget Aug 14:00

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