3 Hot Things Happening in the Market Right Now
- Yes, Facebook (FB - Get Report) is still in a bear market. The stock is down 16% from its early February high. Via @BrianSozzi
- S&P 500 earnings estimates for the first-quarter have fallen for the third straight week, according to Yardeni Research. The S&P 500's first-quarter forecast was down to $36.13 last week from $36.20 a week earlier.
- The NY Auto show kicks off Tuesday with several glitzy unveils. Of interest: the all-new, 1,888 horsepower hypercar Rimac C_Two will makes its North America debut.
Global stocks extended gains Tuesday, following one of the strongest rallies on Wall Street in nearly three years, as investors swooped in to snap up cheap equities in markets around the world amid a cooling of tensions in the U.S.-China trade war.
Early indications from U.S. equity futures also point to solid opening-bell gains, with contracts tied to the Dow Jones Industrial Average marked 114 points to the upside after a searing 669.4 point rally on Monday -- the third largest point gain in history -- that lifted the benchmark past the 24,000 point level. Contracts linked to the broader S&P 500 were also on the move, rising 13.75 points, or 0.55%, after yesterday's 70.29 point gain - the best single-day advance since August of 2015. Nasdaq futures gained 56 points.
The global market rebound continues to be fueled by speculation that officials from both Washington and Beijing are holding closed-door talks aimed at averting an all-out trade war between the world's two largest economies, a concern that was sparked last week by President Donald Trump's decision to target between $50 billion and $60 billion worth of China-made goods for new tariffs following his move to slap import levies on non-American steel and aluminium.
Trade talks going on with numerous countries that, for many years, have not treated the United States fairly. In the end, all will be happy!- Donald J. Trump (@realDonaldTrump) March 27, 2018
European stocks opened firmly higher, with one percent-plus gains across the board at the opening bell, including Britain's FTSE 100, which shrugged off a stronger pound sterling and rose 1.6% at the start of trading in London. The region-wide Stoxx 600 index gained 1.25% to trade at 367.72 points while Germany's DAX performance index added 1.8% to top the 12,000 point mark for the first time since last week.
European stocks were also boosted by a wave of merger activity, with shares in Dulux paint maker Akzo Nobel NV (AKZOY surging more than 5% in Amsterdam after it agreed to sell its Specialty Chemicals business to The Carlyle Group and GIC for an enterprise value of around $12.5 billion.
In Switzerland, shares in drugmaker Novartis AG (NVS - Get Report) were on the move, rising 1.4% to Sfr75.34 each after it agreed an exit from a joint venture with GlaxoSmithKline plc (GSK - Get Report) that netted $13.5 billion for the former and left the latter with full control of a division that makes Sensodyne toothpaste and Panadol pain relief tablets. GlaxoSmithKline shares were marked 2.88% higher in London and changing hands at 1,323.4 pence each in the opening 30 minutes of trading.
Deutsche Bank AG (DB - Get Report) shares were also notably active, rising 1.5% to €11.33 each in Frankfurt following a report from the London Times newspaper that said Germany's biggest lender is sounding out candidates to replace embattled CEO John Cryan.
More broadly, however, the optimism on trade, as well as the strength of the rally on Wall Street Monday, helped boost stocks in Asia overnight, with the region-wide MSCI benchmark rising 1.05% into the close of trading while the Nikkei 225 in Tokyo surged 2.65% to finish the session at 21,317.32 points.
Global oil markets were largely steady overnight, although lingering concerns over middle east tensions, as well as the prospect of renewed sanctions on oil exports from Iran, have kept prices elevated at multi-month highs.
Brent contracts for May delivery, the global pricing benchmark, were seen 25 cents higher from their Monday New York close at $70.36 per barrel while WTI futures for the same month were seen 15 cents higher at $65.70 per barrel.