Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

 

1. Red across the board

U.S. stock futures are pointing lower, European markets are mostly in the red, and Chinese stocks have suffered a major drop.

Both the Shanghai Composite and Shenzhen indexes fell by over 5% Thursday, though this comes on the heels of a stunning rise. The Shenzhen has surged by as much as 100% since the start of 2015, easily making it the world's top performing stock market.

The generally negative mood in the market follows a positive Wednesday where the Dow Jones industrial average gained 121 points, the S&P 500 rose 0.9% and the Nasdaq closed with a 1.5% gain.

Benchmark U.S. indexes are trading near all-time record highs.

 

2. Earnings

Retailers Abercrombie & Fitch (ANF) and Express (EXPR) are reporting ahead of the open.

Gamestop (GME) will report after the close.

 

3. Economics

The U.S. government is posting weekly jobless claims at 8:30 a.m. ET.

Government data on pending home sales from April will be released at 10 a.m.

Later in the morning, Wall Street will get the latest information on natural gas and crude oil inventories.

 

4. Google Conference

Google (GOOG) is kicking off its annual two-day developer conference, where it will showcase its latest techy innovations. It's expected to unveil a spruced up Android operating system.

Watch Google shares as investors react to the latest announcements.

 

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What is it? It checks the level of a diffusion index based on surveyed manufacturers, builders, retailers, agricultural firms, and service providers.

It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.

When? May 28th at 9:00pm Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the NZD to rise.

 

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What is it? It checks the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.

It's a leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect. For example, renovations are done by the new owners, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction.

When? May 28th at 10:00am Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.

 

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What is it? It checks the number of individuals who filed for unemployment insurance for the first time during the past week.

Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.

When? May 28th at 8:30am Eastern Time.

Trading Tip: If the actual number is lower than the forecast, you can expect the USD to rise.

 

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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

 

1. Stock market overview

U.S. stock futures are holding steady following a Tuesday pullback. Investors seem to have been concerned about an upcoming interest rate hike from the Federal Reserve.

On Tuesday, the Dow Jones industrial average, S&P 500 and Nasdaq all declined by about 1%. Still, stocks are not far from their all-time highs.

In Europe, all the main indexes are pushing up in early trading. Asian markets ended with mixed results.

 

2. Currency focus

The International Monetary Fund has declared the Chinese yuan is "no longer undervalued," after spending years criticizing China for keeping its currency from strengthening too much against the U.S. dollar.

China's yuan, also called the renminbi, has risen about 0.5% against the U.S. dollar in the last year.

The dollar is a bit weaker Wednesday versus a range of other currencies. The euro is strengthening.

 

3. Smokin' stocks

Shares in Imperial Tobacco Group (ITYBY) are edging up by about 1.5% in London after the company announced it had received regulatory approval to acquire some cigarette and e-cigarette brands from Reynolds American (RAI) and Lorillard (LO).

"The announcement puts an end to over 10 months of uncertainty about whether the deal would be signed off," said Mike van Dulken, head of research at Accendo Markets in the U.K.

This comes as BrandZ publishes an annual ranking showing that the Marlboro cigarette brand remains one of the most valuable in the world, worth more even than the Facebook (FB, Tech30) brand. Marlboro cigarettes are sold by Altria (MO) in the U.S. and Philip Morris International (PM) overseas.

 

4. Potent politics

Investors will be watching political moves in Europe as G7 finance ministers begin a three-day meeting in Dresden, Germany.

"Greece is likely to feature prominently in the discussions, and traders will keep a close eye on headlines emerging from the sit-down for direction cues," said Ilya Spivak, a currency analyst at DailyFX.

Investors in the U.K. have also been watching "The Queen's Speech," where Queen Elizabeth II outlines the new government's legislative agenda.

 

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