Stocks could sink at the open, as traders react to President Trump's controversial immigration ban and lackluster personal income data
Dow Jones Industrial Average (DJIA) futures are trading below fair value this morning, after the blue-chip index closed last week above the
the 20,000 level for the first time ever. Stocks are being dragged down pre-market following President Donald Trump's controversial immigration ban against citizens of seven Muslim-majority nations, which fueled confusion and protests over the weekend. Separately, personal income rose less than expected, while spending matched expectations by jumping the most in three months -- though investors are already looking ahead to tomorrow, when the Fed will kick off its two-day policy meeting.
Continue reading for more on today's market, including:
- Analysts and traders are eyeing higher post-earnings highs for Microsoft Corporation (NASDAQ:MSFT).
- Bill Ackman: Valeant Pharmaceuticals Intl Inc (NYSE:VRX) "continues to disappoint."
- How Starbucks Corporation's (NASDAQ:SBUX) tech push backfired.
- Plus, Fitbit braces for a drop, Fiat ups the stakes, and Citigroup to slim down.
Futures on the Dow Jones Industrial Average (DJIA) are nearly 84 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 854,832 call contracts traded on Friday, compared to 625,207 put contracts. The resultant single-session equity put/call ratio jumped to 0.73, while the 21-day moving average rose to 0.66.
- Fitbit Inc (NYSE:FIT) is down 9.4% pre-market, after The Information reported the wearables firm plans to announce disappointing fourth-quarter results (subscription required) today. In addition, FIT will allegedly cut up to 10% of its workforce.
- According to Automotive News, Fiat Chrysler Automobiles NV (NYSE:FCAU) will add up to 400 new dealerships in the U.S. Sources said the automaker is attempting to win market share, but with one noting "they're about five years too late."
- Citigroup Inc (NYSE:C) will exit the mortgage servicing business by the end of 2018, with plans to sell rights on roughly 780,000 loans to New Residential Investment Corp (NYSE:NRZ). Instead, CitiMortgage's operations will refocus on mortgage originations.
- The week starts with the pending home sales index.The earnings slate is relatively bare.
Overseas Trading
In Asia, the focus centered on Japanese stocks, with markets in China, Hong Kong, and South Korea still closed for the Lunar New Year holiday. The Nikkei was pressured by jitters related to Trump's travel ban, while a stronger yen weighed on exporters. Investors also digested weaker-than-expected retail sales from the country for December, while heavyweight Toshiba sold off yet again amid reports that a number of banks may sue the company for mismanagement. Meanwhile, the Bank of Japan kicked off its two-day policy meeting. The Nikkei was down 0.5% at the close.
Stocks in Europe are also lower at midday, with Trump's executive order front and center. Traders are awaiting inflation estimates from the Bank of England, a day ahead of the release of eurozone gross domestic product (GDP) figures. Looking more closely, a number of large-cap oil stocks -- including Royal Dutch Shell and BP -- are among the notable losers so far, with the mining sector also suffering broad losses. London's FTSE 100 and France's CAC 40 were both last seen 0.8% lower, with the DAX in Germany dropping 0.7% so far.
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