Stock Futures Struggle Amid Lackluster Earnings

Chipotle and Advanced Micro Devices stocks are heading lower after earnings

Patrick Martin
Oct 25, 2017 at 9:16 AM
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Dow Jones Industrial Average (DJIA) futures are struggling this morning, as the frenzy of earnings season rolls along. Of note, traders are digesting a slew of blue-chip earnings, with Boeing (BA), Coca-Cola (KO), and Visa (V) all reporting. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also lower, weighed down by disappointing earnings from Chipotle Mexican Grill (CMG) and Advanced Micro Devices (AMD), among others. Outside of the earnings confessional, U.S. durable goods orders rose 2.2% in September, higher than the 1% estimate.

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

  • How to trade around next week's Fed meeting, according to Schaeffer's Senior Quantitative Analyst Rocky White.
  • 3 biotech stocks started at "buy."
  • Uncertainty over Obamacare is crushing this insurance stock.
  • Plus, Twitter makes a change; Lumber Liquidators settles a lawsuit; and iRobot reports earnings.

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5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 973,185 call contracts traded on Tuesday, compared to 609,293 put contracts. The single-session equity put/call ratio slid to 0.63, while the 21-day moving average stayed the same at 0.65.
  2. Twitter Inc (NYSE:TWTR) announced new transparency measures for its advertisements. Labels will now accompany political election ads, in an effort to combat the outside interference that plagued Facebook last election. TWTR stock is up 0.2% before the bell, and the company will report earnings tomorrow. 
  3. Lumber Liquidators Holdings Inc (NYSE:LL) stock is up 5.7% in electronic trading, after the company settled lawsuits over Chinese laminated wood flooring, which reportedly contained carcinogens. LL stock has tacked on an impressive 121% year-to-date, and will look to use the news today to break back above a key trendline.
  4. iRobot Corporation (NASDAQ:IRBT) stock is up 9% in electronic trading this morning, after the firm reported third-quarter earnings that topped Wall Street estimates. IRBT has tacked on 29% year-to-date, and the earnings beat should lift the shares back above their 200-day moving average.
  5. Data on new homes sales and weekly crude inventories update will hit the Street today. Alaska Air (ALK), Anthem (ANTM), Freeport-McMoRan(FCX), GrubHub (GRUB), Huntington Banc (HBAN), Las Vegas Sands (LVS), Northrop Grumman (NOC), O'Reilly Automotive (ORLY), Sirius XM (SIRI), Trivago (TRVG), Walgreens Boots Alliance (WBA), and Wyndham Worldwide (WYN) will step up to the earnings plate today.

stock news october 25

Overseas Trading

Asian stock markets mostly settled higher, though Japan’s Nikkei snapped its record-shattering 16-day win streak. The Tokyo-based index pulled back 0.5%, failing to hold early gains despite a weaker yen. In China, investors digested the leadership changes to the country’s governing body. By the close, the Shanghai Composite was up 0.3%, and Hong Kong’s Hang Seng rose 0.5%. In South Korea, the Kospi managed a 0.1% win. 

In Europe, stocks are mixed far today. London’s FTSE 100 was last seen 0.3% lower, despite better-than-expected third-quarter gross domestic product (GDP) numbers for the region. Economic data is also in focus in Germany, where the Ifo Business Climate rose from September to October, with businesses signaling strong optimism for the coming months. Still, the DAX is down 0.1% today. But in France, the CAC 40 is up 0.3%. 


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