Stock Futures Slump as Government Shutdown Continues

Apple was downgraded on iPhone worries

Jan 22, 2018 at 9:15 AM
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U.S. stock futures are trading below fair value, as the government shutdown extends to a third day. The Senate failed to pass a short-term spending bill over the weekend, though Majority Leader Mitch McConnell has scheduled a vote for 12 p.m. ET today for a stopgap bill that would fund the federal government through Feb. 8.

Among individual stocks, Netflix (NFLX) will likely be in focus ahead of tonight's earnings report, while shares of Apple (AAPL) are lower ahead of the bell, after the tech giant was downgraded at Atlantic Equities on concerns over softening iPhone demand. Nevertheless, the pre-market downside is modest, as the Dow and its fellow equity benchmarks continue to hold near record highs.

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

  • GE just wrapped its worst week since the March 2009 market bottom.
  • This drug stock is a steal.
  • In case you missed it, one blockchain stock is screaming "buy."
  • Plus, Teva stock slumps; an energy giant's earnings beat; and the $9 billion biotech buyout.

us stock index futures jan 22

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.5 million call contracts traded on Friday -- the most since Nov. 29 -- compared to 844,728 put contracts. The single-session equity put/call ratio arrived at 0.56, while the 21-day moving average stayed at 0.55.
  2. Teva Pharmaceutical Industries Ltd (NYSE:TEVA) said a late-stage trial for its asthma drug, reslizumab, failed to meet its primary endpoint, sending the shares down 3.4% in electronic trading. TEVA stock could find a floor near the round $20 mark -- a former layer of resistance that could now act as technical support.
  3. Halliburton Company (NYSE:HAL) reported fourth-quarter adjusted earnings of 53 cents per share -- better than the 46 cents per share expected by analysts. Revenue for the oilfield services provider also beat, arriving at $5.94 billion. After closing Friday at $53.01, HAL stock is trading up 2.2% ahead of the bell.
  4. Juno Therapeutics Inc (NASDAQ:JUNO) agreed to be bought by Celgene Corporation (NASDAQ:CELG) for roughly $9 billion in cash, or $87 per share. The buyout buzz first surfaced last week, and the deal will give CELG access to JUNO's CAR-T cancer drug pipeline. JUNO stock is set to open near the purchase price -- up 27.2% in electronic trading -- while CELG shares are down 2.6% before the open.
  5. Along with NFLX, Steel Dynamics (STLD) and TD Ameritrade (AMTD) will report earnings.

stocks to watch today

Samsung Electronics Weighs On South Korea Stocks

The U.S. government shutdown was the primary focus for overseas markets today. Stocks in Asia closed mostly higher, with South Korea's Kospi standing as the one negative outlier; the index dropped 0.7% on weakness from heavyweight Samsung Electronics. In China, the Shanghai Composite rose 0.4%, as did the Hang Seng in Hong Kong. Japan's Nikkei advanced fractionally, as tech names -- a group including a number of Apple suppliers -- outperformed.

Turning to Europe, investors are digesting a fresh round of corporate earnings reports, and stocks are sticking close to breakeven at midday. Bank stock UBS is seeing extra attention as the shares pull back following a larger-than-expected quarterly loss. Meanwhile, Sanofi SA is falling sharply in Paris after the company announced it’s buying U.S. firm Bioverativ for close to $12 billion. London's FTSE 100 and the German DAX were up 0.1% at last check, and the French CAC 40 was sporting a slim 0.2% lead.


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