Markets Awaiting Results from Trade Talks

U.S. stock futures are relatively flat in the premarket as a second day of talks between the Trump administration and China got underway. Monday’s meeting came with no clear details on the discussions but American officials had sounded optimistic that the two sides could ease tensions over shipments of technology and rare earth elements. Apple (AAPL) shares fell 1.2% on Monday after kicking off its World-wide Developers Conference with an operating system refresh but little in the way of AI. There is no economic data due today so investor focus will be on any outcomes in the China – U.S. trade talks.

Snapshot (as of 7 AM ET)

• Oil (/CL) – Oil prices are up 0.5% near $65.60, 2-month highs, as markets waited for the outcome of U.S.-China talks that could pave the way for easing trade tensions and improve fuel demand.
• Gold (/GC) – Gold is flat near $3360 as market participants awaited further developments from ongoing U.S.-China trade talks in London, with negotiations extending into a second day.
• Bitcoin (/BTC) – The Crypto Future is up 0.7% just below 110K in the premarket.
• VIX – The CBOE Volatility Index was up 2.3% on Monday and settled at 17.16 as stocks were mostly higher.
• U.S. Dollar (/DX) – The Dollar Index is flat at 98.98

Biggest Premarket Movers (Mark % Change as of 7 AM ET)

1. TSLA (+2.12%)
2. ENPH (+1.71%)
3. FSLR (+1.43%)
4. MCD (-1.11%)
5. PLTR (-1.11%)
6. DPZ (-0.61%)

Economic Data

• 6:00 AM ET: NFIB Small Business Optimism Index
• 1:00 PM ET: 3-Year Note Auction

Notable Earnings

• Premarket: ASO, CNM, DBI, SJM, UNFI
• Postmarket: PLAY, GME, GTLB, PETS, SFIX
• Premarket Wednesday: CHWY, CGNT, SAIL, VSCO
• Postmarket Wednesday: ORCL, OXM

Upgrades/Downgrades

• Redburn Atlantic upgrades Yum! Brands (YUM) to Buy from Neutral
• Mizuho upgrades Macerich (MAC) to Outperform from Neutral
• Redburn Atlantic downgrades Macdonald’s (MCD) to Sell from Buy