Stock Futures Cautiously Higher After Worst Day in 3 Months

U.S. stocks have a lot of ground to make up after yesterday's steep losses

Aug 18, 2017 at 9:18 AM
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The Dow Jones Industrial Average (DJIA) futures are signaling a higher open today, after shaving off 274 points and breaking its four-day winning streak in the wake of yesterday's disappointing earnings from Wal-Mart and Cisco Systems. Yesterday's tumble represented the Dow's worst one-day point loss in three months. Traders are still exercising caution today, though, amid concerns about President Trump's ability to follow through with his legislative agenda. The Dow is now set for its first back-to-back weekly losses since May.

Continue reading for more on today's market, including:

Futures Chart August 18

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 810,283 call contracts traded on Thursday, compared to 632,705 put contracts. The single-session equity put/call ratio jumped to 0.78, and the 21-day moving average rose to 0.69.
  2. Shares of Foot Locker, Inc. (NYSE:FL) are down 21.3% in pre-market trading, after the company reported worse-than-expected second-quarter earnings. Today's expected drop to new lows could bode well for recent Foot Locker options traders.
  3. Although Hibbett Sports, Inc. (NASDAQ:HIBB) reported smaller-than-expected second-quarter losses, the athletic apparel retailer reported lackluster revenue and cut its full-year outlook. As a result, HIBB is down 11% in electronic trading, set to explore territory not charted since 2008.
  4. Better-than-expected second-quarter earnings and same-store sales have Gap Inc (NYSE:GPS) up 5.8% in pre-market trading. The clothing retailer also raised its full-year forecast. As such, J.P. Morgan Securities and Deutsche Bank both issued $1 price-target hikes, to $28 and $24, respectively.
  5. Dallas Fed President Robert Kaplan will speak again today, and the University of Michigan's consumer sentiment survey will come out. Deere & Company (DE) and Estee Lauder (EL) will report earnings today, ahead of a number of retail and tech stock earnings slated for next week.

Buzz Stocks August 18

Overseas Trading

Stocks throughout Asia struggled, as investors digested the weakness out of U.S. markets and the terrorist attack in Barcelona. China’s Shanghai Composite, however, managed slight gains, closing up 0.02%, capping off its best week in four months. On the other hand, Hong Kong’s Hang Seng sank 1.1%. In Japan, the Nikkei also fell 1.2% to flirt with three-month lows. Rounding out the region, South Korea’s Kospi dipped 0.1%.

It’s a similar story in Europe, with the major indexes painted red across the board. The deadly attack in Barcelona has travel stocks spiraling, with airlines suffering sharp losses. The biggest losers thus far are London’s FTSE 100 and France’s CAC 40, which have both shed 0.9%. In Germany, the DAX has fallen 0.3%.


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