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Futures Point Lower on China Tensions

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S&P futures are pointing lower by about 0.30%, but well off their lows of the night. The back and forth rhetoric between the U.S. and China involving the spread of COVID-19 is creating fear that trade relations could be harmed. Last night China imposed national-security laws on Hong Kong which could increase the negative rhetoric against China.

Crude oil also snapped over 6% lower after China said it wouldn’t set its GDP target for 2020. The country is the second largest consumer of oil, so if we are to assume that GDP is worse than expected, it doesn’t say a lot for oil demand.

S&P Futures Trading Levels

The S&P futures currently sit at 2928. Support overnight was found just above the 2900 level, but if we challenge the lows look for buyers 2894 and 2866.

To the upside look for 2948 and 2962 to create resistance.

The current environment is choppy, with a 2750-2950 trading range establishing itself.

Three Stocks to Watch

NVDA- Solid earnings beat from the company along with a Q2 revenue guide higher. The stock is trading flat pre-market as traders take profits after a big run higher over the last month. A few analysts have raised their price targets this morning, with most seeing the stock above the $400 level.  

SPLK- The company saw a slight beat on EPS and a miss on revenues. The stock was trading lower after hours at first, but completely reversed and is bid about 4% higher premarket.  

PANW – The company finally had the quarter investors have been looking for, with a big beat and guide higher. The stock is trading almost 7% higher and looking to take out all-time highs at $260.

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