Stock Futures Eye Strong Start, Trump Takes on Draghi
ECB President Mario Draghi said the bank could cut rates again and President Trump isn't happy
Futures on the Dow Jones Industrial Average (DJI) are trading above fair value, after stocks notched a slim victory to start the week. The focus remains on the latest central bank buzz, as the Federal Open Market Committee (FOMC) begins its two-day policy deciding meeting today. Meanwhile, European Central Bank (ECB) President Mario Draghi said the bank could cut interest rates again -- comments that sparked a backlash from President Donald Trump on Twitter, who said they were "unfair to U.S." Traders are also monitoring the extended dip in the 10-year Treasury yield, while Facebook's (FB) big cryptocurrency announcement puts tech on the radar again.
Continue reading for more on today's market, including:
Why Schaeffer's Senior V.P. of Research Todd Salamone is wary of the tech sector right now. The Dow stock at risk for more downgrades.Analyst calls it quits with huge 2019 winner. Plus, Facebook pops on crypto buzz; Pinterest gets a bull note; and Beyond Meat does it again.
5 Things You Need to Know Today
The Chicago Board Options Exchange (CBOE) saw 870,584 call contracts traded on Monday, compared to 626,163 put contracts. The single-session equity put/call ratio was sharply higher at 0.72, while the 21-day moving average edged up to 0.68.Facebook, Inc. (NASDAQ:FB) is the hot name this morning after the company officially announced its cryptocurrency Libra, which will launch in 2020. The social media giant is creating a subsidiary named Calibra as part of the project, in which it will offer digital wallets for users. Call traders were targeting FB yesterday in preparation of the news, and the shares are set to open up more than 2% at the open.Fellow social media stock Pinterest Inc (NYSE:PINS) is also rising in pre-market trading, after Wedbush began coverage with an "outperform" rating and $33 price target. PINS shares closed yesterday at $27.85 after trading as high as $35.10 a few sessions after their April initial public offering (IPO). And finally in what's become an everyday occurrence, Beyond Meat Inc (NASDAQ:BYND) is set for a huge move, jumping 15.5% this morning. The shares pulled back some last week when Tyson Foods (TSN) unveiled its line of plant-based protein products, but this pre-market move would have the stock deep into all-time high territory, trading near $200 after an IPO priced at $25 last month. Adobe Systems (ADBE) steps into the earnings confessional.
Stocks in Asia and Europe Edge Higher
The majority of markets in Asia ended higher ahead of today's U.S. Fed meeting. Hong Kong's Hang Seng was the biggest gainer, up 1% as tech giant Tencent surged. The Shanghai Composite in China was 0.1% higher amid several American firms urging President Trump to stop extending tariffs on Chinese goods. South Korea's Kospi rose 0.4%, ending its four-day losing streak, while the Nikkei in Japan fell 0.7%.
Draghi's comments concerning the ECB's role in boosting economic stimulus is helping lift European markets at midday. London's FTSE 100 is 1% higher, the French CAC 40 has tacked on 1.6%, and the DAX in Germany has risen 1.4%.