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Stock Futures Weaken; China Makes Trade War Pledge; Tilray Spikes

Stock futures dipped into negative territory ahead of Wednesday’s Yom Kippur holiday session, as Europe’s markets edged higher and the dollar slumped after China made a trade war promise regarding its currency. Praxair (PX), Nike (NKE), Tesla (TSLA) and Tilray (TLRY) were among the session’s early movers.




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Dow futures reversed early gains and slipped a fraction below fair value. S&P 500 futures and Nasdaq futures also dipped to narrow declines. Intel (INTC) posted the Dow’s deepest decline. Intel and Tesla led the downside among Nasdaq 100 stocks.  (For updates on this story and other market coverage, visit the Stock Market Today.)

Premarket action was mild following Tuesday’s positive session for U.S. stocks. Global markets gained ground Wednesday, and trade war fears appeared paused after Chinese Premier Li Keqiang assured the World Economic Forum in Tianjin that China was not manipulating its currency and “will by no means stimulate exports by devaluing the yuan.”

Stock Futures: Nike Gets Ad Boost, Tesla Slips, Tilray Soars (Again)

Nike climbed 0.4%, enough to lead the Dow. A survey conducted by Canaccord Genuity found the company’s “Just Do It” ad campaign featuring former NFL player Colin Kaepernick “had the intended effect of positively skewing (Nike’s) brand perception and likely providing a bump in sales.” Nike shares ended Tuesday up 2% for  the week, and extended after clearing a flat base in August.

Marijuana production and distribution new issue Tilray launched 47% higher, triggering another premarket rally among cannabis stocks. Tilray has booked a 138% gain for September, receiving a boost Tuesday from federal regulators. The stock ended Tuesday more than 800% above its July IPO price. Peers Canopy Growth (CGC) jumped more than 6%. Cronos Group (CRON) spiked 12% ahead of the open.

IBD 50 stock Copart (CPRT) skidded 8% lower, after a 20% rise in fiscal fourth-quarter earnings missed expectations for a 37% gain. Revenue rose 19%, in line with estimates. The stock ended Tuesday extended after clearing a flat base in August. Wednesday’s premarket action suggests the stock will open back below that base’s 60.53 buy point, and below its 10-week line of support.

Industrial gases leader Praxair popped nearly 3% higher. News reports said the company and Germany’s Linde were preparing to divest assets worth as much as $200 million to clear the way for their proposed $45 billion merger. Much of those assets involved Linde’s North American industrial gases business, according to Bloomberg.

Tesla fell 2%, as investors continued to respond to a Department of Justice probe into the Tesla Chief Executive Elon Musk’s tweeted comments about taking the company private.  Tesla shares ended Tuesday down 27% from a mid-August high, and below both their 10- and 40-week moving averages.

hetherlands-based chemicals heavyweight LyondellBasell (LYB) fell 2.4%, taking the worst hit among S&P 500 stocks. J.P.Morgan cut the stock’s rating to underweight, from neutral, and lowered its price target to 95, from 110, citing rising feedstock costs.

Housing Starts Jump/Trade War Update

Housing starts jumped in August, the Commerce Department reported, to an annualized pace of 1.282 million starts. That was a big step up from 1.168 starts in July, easily clearing analyst targets for 1.24 million starts. Building permits, a gauge of upcoming activity, went the other direction — hitting a pace of 1.229 million in August. That was down nearly 6% from July, and below expectations for a rate of 1.315 million permits issued.

The U.S. launched fresh salvos of trade war tariffs late Monday against China. China met the duties on goods valued at $200 billion annually with its own escalation, announcing on Tuesday tariffs levied on $60 billion worth of U.S. imports. President Trump said later Tuesday that if China tariffs targeted “our farmers and our industrial workers and our ranchers,” the U.S. would impose tariffs on an additional $267 billion in China-made goods.

More Rebounding In China

China’s markets added a second session to their rebound, with the Shanghai Composite and Hong Kong’s Hang Seng index each jumping more than 1%. In Japan, Tokyo’s Nikkei 225 also popped 1.1%, lifting the benchmark to within 3% of its January high.

Europe’s markets held modest gains in afternoon trade, with the FTSE 100 in London, the DAX in Frankfurt and the CAC-40 in Paris all trading up 0.2%.

The dollar slipped vs. the yen. Bonds traded effectively flat. Oil prices eased, after data released by the American Petroleum Institute late Tuesday showing an increase in weekly oil inventories of 1.25 million barrels, vs. expectations for a 2.74 million-barrel decline. U.S. benchmark West Texas Intermediate traded down 0.1% and just below $70 per barrel. Brent crude was down 0.4% at $78.66. The Energy Information Administration releases official weekly oil inventories data at 10:30 a.m. ET.

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