S&P Futures Point to Fourth Straight Loss

The ADP jobs report topped expectations for November

Dec 6, 2017 at 9:11 AM
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U.S. stock futures are signaling a lower open today, pointing to a fourth straight down day for the S&P 500 Index (SPX) and Nasdaq Composite (IXIC). Investors this morning are digesting the ADP private payrolls report, which topped expectations for November with 190,000 jobs added -- possibly providing a hint for traders ahead of Friday's nonfarm payrolls report. Still, the Dow Jones Industrial Average (DJIA) and its index peers are ready to open sharply lower, with tech stocks signaling weakness. Oil prices could be in focus, too, with the weekly crude inventories report set for release this morning. At last check, January-dated crude futures were down 1.2% at $56.91 per barrel.

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

  • This VIX signal has happened just one other time.
  • Why this biotech stock surged 40%.
  • Options traders are bracing for Lululemon Athletica earnings.
  • Plus, a big earnings winner; a drug stock up 43% before the open; and EDIT stock stumbles.

stocks today


5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 827,228 call contracts traded on Tuesday, compared to 468,921 contracts. The single-session equity put/call ratio moved up to 0.57, while the 21-day moving average remained at 0.61.
  2. Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) last night reported better-than-expected third-quarter earnings, lifting the shares 7.8% in pre-market trading. PLAY stock has struggled in recent months, falling from a June high of $73.48 to last night's close of $52.89, with the 100-day moving average capping its recent breakout attempt. Analysts remain bullish, though, as Maxim raised its price target to $84 from $78.
  3. Madrigal Pharmaceuticals Inc (NASDAQ:MDGL) stock is making a huge move before the open, rising 42.6%, thanks to strong phase 2 trial results for its liver disease drug. This would put the shares in two-year-high territory, but such a huge move is not unfamiliar, as MDGL stock closed yesterday at $46.30, and was trading as low as $13.10 as recently as June.
  4. Genome specialist Editas Medicine Inc (NASDAQ:EDIT) stock is set to fall almost 5% at the open, after the company priced a common stock offering at $25.30 -- below yesterday's close of $27.29. EDIT stock hit a 52-week high of $31.81 just two days ago, and is up 68.1% year-to-date.
  5. Earnings from American Eagle Outfitters (AEO), Broadcom (AVGO), Fred's (FRED), H&R Block (HRB), Ollie's Bargain Outlet (OLLI), and Vera Bradley (VRA) are due.

stock market news december 6

Overseas Trading

Asian markets took cues from Wall Street, with stocks closing sharply lower as the U.S. dollar cooled against a basket of global currencies. A surging yen sent Japan's Nikkei down 2% -- its heftiest one-day percentage drop since late March -- while a continued decline in tech stocks had Hong Kong's Hang Seng and South Korea's Kospi giving back 2.1% and 1.4%, respectively. Elsewhere, sinking copper futures put pressure on miners, sending China's Shanghai Composite down 0.3%.

The selling has spread to Europe, with most major benchmarks lower at midday. In addition to another sharp drop in technology shares, retailers are lower after German-based Steinhoff said its CEO has resigned amid an investigation into accounting irregularities. Traders are also weighing a controversial move by U.S. President Donald Trump, who is expected to name Jerusalem as Israel's capital later today. Most recently, the German DAX was off 1%, and the French CAC 40 was down 0.6%. London's FTSE 100 is higher, though, up 0.1%.

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