Stock Futures Point to Extended Freefall

The VIX is coming off its largest one-day surge in history

Managing Editor
Feb 6, 2018 at 9:13 AM
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Stock futures are pointed dramatically lower for the third straight day, following yesterday's historic collapse that saw the Dow down more than 1,100 points by the close. Specifically, Dow Jones Industrial Average (DJI) futures are trading more than 600 points below fair value, and S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also significantly lower. Stocks around the world are feeling the pain, with benchmarks in Asia and Europe taking it on the chin. Accompanying this monumental downturn is the surging CBOE Volatility Index (VIX), which closed yesterday at its highest point since August 2015, and is pointed higher once again.

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

  • Why the sell-off was a self-fulfilling prophecy, according to Schaeffer's Senior V.P. of Research Todd Salamone.
  • Options bulls are betting on Disney's earnings history.
  • 2 athleisure stocks to target this week.
  • Plus... Pfizer reports upbeat drug results; General Motors scores an earnings win; and the Apple supplier set to get crushed. 

Stock Futures Chart Feb 6

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.1 million call contracts traded on Monday, compared to 799,847 put contracts. The single-session equity put/call ratio fell to 0.73, while the 21-day moving average moved up to 0.57.
  2. Although the stock is down 1.7% ahead of the bell due to the broad-market headwinds, Pfizer Inc. (NYSE:PFE) late yesterday reported upbeat early-stage results for its prostate cancer drug, Xtandi. PFE stock touched a 16-year high of $39.43 on Jan. 29, but has dropped 11.3% in the past week.
  3. General Motors Company (NYSE:GM) stock is up 1.2% ahead of the bell, after the car company delivered an impressive fourth-quarter earnings and revenue beat. Due to broad market headwinds, General Motors stock is coming off its own worst session of 2018, which saw the shares fall to their 160-day moving average. 
  4. Cirrus Logic, Inc. (NASDAQ:CRUS) stock is down a whopping 15% in electronic trading, after the chip-maker delivered fiscal third-quarter earnings and revenue below analyst expectations. The disappointing results were attributed to weaker smartphone sales. As a result, Needham downgraded the Apple supplier to "hold" from "buy" this morning. No fewer than five other brokerages chimed in with price-target cuts, including to $36 from $45 at Barclays.
  5. Today will feature international trade data, as well as the Labor Department's Job Openings and Labor Turnover Survey (JOLTS). St. Louis Fed President James Bullard is expected to speak in the morning. AECOM Tech (ACM), Akamai Technology (AKAM), Archer-Daniels Midland (ADM), Array Biopharma (ARRY), Centene (CNC), Cerner Corporation (CERN), Chipotle (CMG), Dunkin Brands (DNKN), Gilead Sciences (GILD), Snap Inc (SNAP), and Spirit Airlines (SAVE) will report earnings.

stock market news february 6

Global Stocks Plunge

Asian stocks followed in the bearish footsteps of U.S. markets, posting sharp losses as traders hit the exits en masse. Tech and financial were two of the worst-performing sectors across the board, with a 6.2% drop for Tencent helping to send Hong Kong's Hang Seng down 5.1%. Japan's Nikkei plunged 4.7% to enter correction territory -- and logged its biggest point drop since Brexit -- as the yen strengthened amid growing demand for safe-haven assets. Elsewhere in the region, China's Shanghai Composite gave back 3.4%, and South Korea's Kospi fell 1.5%.

European markets are also succumbing to heavy selling at midday, though stocks have come off their intraday lows. At last check, the French CAC 40 was off 2.7%, the German DAX was down 2.3%, and the London FTSE 100 was flirting with a 2% loss -- pacing for its lowest close since April.

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