Markets Slip as Hong Kong Legislation Increases Trade Fears

First Look

Major indices are lower in the pre-market Wednesday after the U.S. Senate unanimously passed a bill Tuesday that supports protestors demonstrating in Hong Kong, with the U.S. warning China against the use of violence against protestors. The law will require annual reviews to verify that Hong Kong remains autonomous from China as a precondition for special trade privileges. The bill also has the potential to become an impediment in trade negotiations with mainland China. The Federal Reserve will publish minutes from its latest policy meeting at 2 p.m. this afternoon. The S&P 500 is down -0.28%, the Dow Jones is down -0.32%, the Nasdaq is down -0.37%.

Today's Sentiment

Quote of the Day

Only those who dare to fail greatly can ever achieve greatly.
Robert Kennedy

Stocks on the Move

Target Corporation (TGT), Lowe's Companies, Inc. (LOW) and Molson Coors Brewing Co Class B (TAP) are moving higher this morning, while L Brands Inc (LB), Gap Inc (GPS) and salesforce.com, inc. (CRM) are headed lower. Intelsat SA (I), Tradeweb Markets Inc (TW) and Paycom Software Inc (PAYC) were upgraded by analysts this morning, while Kohl's Corporation (KSS), Berry Petroleum Corp (BRY) and RPC, Inc. (RES) were downgraded.

International Markets

Stocks in Asia are mixed. The Mumbai Sensex is up 0.45%, the Nikkei 225 is down -0.62%, the Hang Seng is down -0.75% the Shanghai SE Composite Index is down -0.78% and the Australia ASX All Ordinaries is down -1.24%. Stocks in Europe are down. The FTSE 100 is down -1.06%, the DAX is down -0.74%, the Euro Stoxx 50 is down -0.53% and the CAC 40 is down -0.4%.

Futures & Currencies

Energy futures are up today. The price for West Texas Intermediate crude oil is up 0.29 at 55.5 per barrel. Brent crude is up 0.37 at 61.28 per barrel. Natural Gas is up 0.05 at 2.56. Precious metals are up this morning. Gold is up 1.2 at 1473.66 per ounce. Platinum is up 0.85 at 911.72 while silver is up 0.12 at 17.22. 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, 1,436,902 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 1,074,821 put contracts. The single-session put/call was 0.75 while the 20-day moving average is now at 0.67.

Today's Economic Calendar

Earnings Expected Today