Morning Update: Trade Tension Keep Investors Shaken

First Look

Markets are down before the open Tuesday. Investors remain shaken as the ongoing trade dispute between the U.S. and China continues to unfold. U.S. Trade Representative Robert Lighthizer confirmed that the U.S. will be raising tariffs on $200 billion in Chinese goods from 10 to 25 percent Friday morning. The move comes after accusations that the Chinese government is backpedaling on previous commitments regarding changes to Chinese law that would protect U.S. proprietary technology. Trade negotiations will continue this week. China’s Vice Premier Liu He scheduled to meet in Washington on May 9 and 10. Vice Premier He had been scheduled for trade talks early this week, but negotiations have been pushed back. President Trump has also said he’s considering a 25 percent tariff on $325 billion of Chinese imports not currently covered by import duties. Retaliatory tariffs from China are expected if negotiations fail and the U.S. imposes additional sanctions Friday. The Dow Jones is down -0.66%, the S&P 500 is down -0.69%, the Nasdaq is down -0.77%.

Today's Sentiment

Quote of the Day

Time spent with cats is never wasted.
Sigmund Freud

Stocks on the Move

American International Group Inc (AIG), Pioneer Natural Resources (PXD) and Red Hat Inc (RHT) are moving higher this morning, while Regeneron Pharmaceuticals Inc (REGN), Whirlpool Corporation (WHR) and International Flavors & Fragrances Inc (IFF) are headed lower. Sinclair Broadcast Group Inc (SBGI), Texas Roadhouse Inc (TXRH) and Planet Fitness Inc (PLNT) were upgraded by analysts this morning, while Discover Financial Services (DFS), Boeing Co (BA) and Anadarko Petroleum Corporation (APC) were downgraded.

International Markets

Stocks in Asia are mixed. The Shanghai SE Composite Index is up 0.69%, the Hang Seng is up 0.55%, the Australia ASX All Ordinaries is up 0.21% the Mumbai Sensex is down -0.84% and the Nikkei 225 is down -1.51%. Stocks in Europe are down. The FTSE 100 is down -0.9%, the Euro Stoxx 50 is down -0.72%, the DAX is down -0.66% and the CAC 40 is down -0.56%.

Futures & Currencies

Energy futures are down today. The price for West Texas Intermediate crude oil is down -0.6 at 61.65 per barrel. Brent crude is down -0.84 at 70.4 per barrel. Natural Gas is down -0.01 at 2.54. Precious metals are down this morning. Gold is down -1.35 at 1279.75 per ounce. Platinum is down -4.14 at 871.77 while silver is down -0.1 at 14.83. 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, 963,040 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 607,530 put contracts. The single-session put/call was 0.63 while the 20-day moving average is now at 0.6.

Today's Economic Calendar

Earnings Expected Today