Stock Futures Signal Lower Open After Trump Talks NAFTA, Government Shutdown

The Dow Jones Industrial Average (DJIA) is set to open in the red today, erasing part of yesterday's triple-digit rally -- the Dow's best day in months. Futures on the S&P 500 Index (SPX) and Nasdaq Composite (COMP) are also signaling a lower open, after President Trump said the U.S. might abandon NAFTA, and vowed to build a wall along the U.S.-Mexico border, even "if we have to close down our government." Elsewhere, traders will turn their attention to the Jackson Hole meeting of global central bankers, and digest data on new home sales and crude inventories.

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

• The small-cap signal that nailed two major market tops, according to Schaeffer's Senior Quantitative Analyst Rocky White.
• Founder and CEO Bernie Schaeffer offered up a dozen reasons to keep utilities ETF XLU on your radar.
• The insider selling that slammed e.l.f. Beauty stock.
• Plus, three retail stocks set to move after earnings.

1. The Chicago Board Options Exchange (CBOE) saw 802,681 call contracts traded on Tuesday, compared to 443,776 put contracts. The single-session equity put/call ratio fell to 0.55 -- the lowest since July 20 -- and the 21-day moving average remained at 0.71.
2. After reporting worse-than-expected second-quarter earnings and offering up a lackluster full-year outlook, Lowe's Companies, Inc. (NYSE:LOW) stock is down 5.8% in pre-market trading -- a move options traders didn't see coming. LOW stock could now test the $72 area, which contained its mid-July pullback.
3. Express, Inc. (NYSE:EXPR) stock is up 19.5% in electronic trading, after the company reported better-than-expected second-quarter earnings and upped its full-year guidance. EXPR stock touched a record low of $5.28 on Monday.
4. American Eagle Outfitters (NYSE:AEO) stock is up 10.6% in pre-market trading, after the company posted a surprise rise in comparable-store sales and better-than-expected second-quarter earnings -- likely to the dismay of short sellers. AEO stock touched a three-year low of $10.23 on Monday.
5. Guess (GES), HP (HPQ), and Tilly's (TLYS) will report earnings. 

Overseas Trading

It was a ho-hum session for Asian equities. Starting in China, the Shanghai Composite surrendered early gains to fall 0.1%. Trading was canceled in Hong Kong due to tropical storm Hato, which has taken a toll on gambling destination Macau. The yen strengthened in Japan following President Trump’s comments about a government shutdown, but the Nikkei still managed a 0.3% advance.  Meanwhile, the Kospi edged up 0.05% in South Korea.

European stocks are also range-bound. One security that is making a big move, however, is advertising giant WPP PLC; the shares have given back more than 10% following a downbeat full-year outlook. Germany’s DAX was last seen 0.3% lower, France’s CAC 40 down 0.2%, and the FTSE 100 off 0.1% in London, even after strong eurozone manufacturing data for August.