Stock Futures Lower Again As Volatility Reigns

Traders are keeping an eye on Washington, D.C., as Congress tries to avoid a government shutdown

Managing Editor
Feb 7, 2018 at 9:18 AM
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Stock futures are once again pointed lower, after Tuesday's incredibly volatile session that saw the Dow Jones Industrial Average (DJI) trade in a more than 1,100-point range before ending higher. Today, however, Dow futures are pointing to a triple-digit drop, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also in the red. Along with the latest batch of earnings reports, traders are digesting news that the U.S. House of Representatives passed a short-term spending bill last night. The Senate will need to pass the bill by tomorrow night in order to avoid another government shutdown, though Republicans and Democrats are at odds over immigration.

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

  • Schaeffer's Senior Quantitative Analyst Rocky White breaks down the fastest pullback from record highs in 30 years.
  • Dump these 25 stocks right now.
  • This airline stock could be headed for trouble.
  • Plus... Disney's earnings beat; SNAP's expected rally; and Steve Wynn steps away. 

Stock Futures Chart Feb 7

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 943,886 million call contracts traded on Tuesday, compared to 711,294 put contracts. The single-session equity put/call ratio rose to 0.75, while the 21-day moving average moved up to 0.58.
  2. Walt Disney Co (NYSE:DIS) stock is up 1.9% ahead of the bell, after the media company reported quarterly earnings that exceeded analyst expectations. Disney also announced a new direct-to-consumer ESPN streaming service, and said it hired "Game of Thrones" creators David Benioff and D.B. Weiss to write and produce more "Star Wars" installments. Since falling to an annual low of $96.20 on Sept. 7, Disney stock has added nearly 13%, with a recent pullback contained by its 160-day moving average.
  3. Snap Inc. (NYSE:SNAP) stock is up 20.1% ahead of the bell -- and set to take out its IPO price of $17 -- after the company's per-share loss was smaller than anticipated. The Snapchat parent also reported stronger-than-expected revenue and an increase in daily active users. The news has SNAP stock on track to trade at levels not seen since June. 
  4. Wynn Resorts, Limited (NASDAQ:WYNN) stock is up 8.6% in electronic trading, after embattled CEO Steve Wynn resigned last night amid recent allegations of sexual misconduct. J.P. Morgan Securities also upgraded the casino stock this morning to "overweight" from "neutral." WYNN stock touched a four-year high of $203.63 on Jan. 25, before pulling back to test its 80-day moving average.
  5. Today features the latest MBA mortgage index and the weekly crude inventories update. New York Fed President William Dudley and Chicago Fed President Charles Evans will speak in the morning. Tesla (TSLA), 21st Century Fox (FOXA),  Allstate (ALL), Hain Celestial (HAIN), Hasbro (HAS), Humana (HUM), iRobot (IRBT), Michael Kors (KORS), NXPI Semiconductors (NXPI), O'Reilly Automotive (ORLY), Take-Two Interactive (TTWO), Trivago (TRVG), and Yelp (YELP) are slated for earnings reports.

stock market news february 7

Energy Sector Leading European Stocks Higher

After a strong start to the session, most Asian benchmarks closed lower -- mirroring a roller-coaster session on Wall Street. South Korea's Kospi turned in the worst performance, shedding 2.3%, as Samsung Electronics plunged. China's Shanghai Composite gave back 1.8%, while Hong Kong's Hang Seng lost 0.9%. Japan's Nikkei, however, held on to gains -- adding 0.2%, as tech stocks and automakers outperformed.

European stocks are broadly higher at midday, with booming energy stocks helping to lead the rebound. Traders are also reacting positively to news that German Chancellor Angela Merkel's Christian Democratic Union has reached a deal with Social Democrats to form a coalition government, while the European Union's upwardly revised eurozone growth forecasts for this year and next is also adding to the bullish buzz. At last check, London's FTSE 100 was up 1.1%, the German DAX was 0.8% higher, and the French CAC 40 had tacked on 0.7%.

 

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