Stocks Rise as Tension Grows and Trade Talks Slow

First Look

Stocks are pointed higher in the pre-market Friday. Tension continues to escalate in the Strait of Hormuz after President Trump said Thursday that a U.S. warship destroyed an Iranian drone that was near a U.S. ship. Marines aboard the U.S.S Boxer reportedly used electronic jamming equipment to down the drone after closed within 1000 yards of the ship and ignored multiple calls to stand down. Iranian officials have denied that it lost a drone in the area and suggested that the U.S. may have shot down one of its own drones. U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer spoke with Chinese trade officials via telephone Thursday. No details of the phone conversations were released, and no announcement was made of additional face-to-face meetings, signaling the possibility of slowing negotiations. The Dow Jones is up 0.29%, the Nasdaq is up 0.23%, the S&P 500 is up 0.18%.

Today's market outlook is Neutral

Negativity is the enemy of creativity.
David Lynch

Stocks on the Move

Microsoft Corporation (MSFT), Molson Coors Brewing Co Class B (TAP) and Boeing Co (BA) are moving higher this morning, while Linde PLC (LIN), Newmont Goldcorp Corp (NEM) and Netflix, Inc. (NFLX) are headed lower. Philip Morris International Inc. (PM), Public Storage (PSA) and Post Holdings Inc (POST) were upgraded by analysts this morning, while Paycom Software Inc (PAYC), Michaels Companies Inc (MIK) and MSG Networks Inc (MSGN) were downgraded.

International Markets

Stocks in Asia are mixed. The Nikkei 225 is up 2%, the Hang Seng is up 1.07%, the Shanghai SE Composite Index is up 0.79% the Australia ASX All Ordinaries is up 0.75% and the Mumbai Sensex is down -1.44%. In Europe stocks are mixed. The FTSE 100 is up 0.1%, the CAC 40 is up 0.09%, the DAX is up 0.08% and the Euro Stoxx 50 is down -0.04%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is up 0.72 at 56.02 per barrel. Brent crude is up 0.9 at 62.83 per barrel. Natural Gas is flat 0 at 2.28. Precious metals are up this morning. Gold is up 7.88 at 1438.22 per ounce. Platinum is up 7.64 at 860.3 while silver is up 0.16 at 16.36. The dollar is up compared to the major currencies today. The greenback is up against the euro, up against the Yen and up against the Pound.

Put/Call Ratio

Yesterday, 973,173 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 587,478 put contracts. The single-session put/call was 0.6 while the 20-day moving average is now at 0.6.

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Today's Economic Calendar

What's Happening Period Release Time
Univ. of Michigan Consumer Sentiment - Prelim Jul 10:00

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