Stock Futures Slide as Market's Choppy Ride Continues

The Dow's two-day win streak is in jeopardy

Managing Editor
Feb 13, 2018 at 9:16 AM
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Stock futures are trading firmly below fair value this morning, signaling a reversal after two straight days of gainsDow Jones Industrial Average (DJI) futures are down over triple digits, with anxiety ramping up ahead of the release of inflation data later this week. Traders are also digesting President Trump's newly unveiled budget proposal, which would more than double the U.S. deficit over the next 10 years.

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

  • The VIX risk that just turned into an opportunity, according to Schaeffer's Senior V.P. of Research Todd Salamone.
  • Options traders placed big bets on these two bank ETFs.
  • Amazon.com claimed another victim.
  • Plus, Blue Apron's earnings beat; Under Armour's revenue win; and Walgreens plots another takeover. 

Stock Futures Chart Feb 13

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 839,057 call contracts traded on Monday, compared to 565,147 put contracts. The single-session equity put/call ratio fell to 0.67, while the 21-day moving average jumped to 0.61. 
  2. Blue Apron Holdings Inc (NYSE:APRN) is up 7.2% in electronic trading, after the food kit company delivered a narrower-than-expected fourth-quarter loss, and higher average revenue per customer. The company cited operational improvements at its fulfillment center in New Jersey as a driver behind the encouraging report. Blue Apron stock has shed nearly 17% year-to-date, but the shares look set today to challenge their overhead 50-day moving average.
  3. Shares of Under Armour Inc (NYSE:UAA) are up 11.2% ahead of the bell, after the sportswear company reported fourth-quarter revenue that exceeded analysts' expectations. The news has UAA shares on track to trade above their 120-day moving average for the first time in over a month. From a broader perspective, Under Armour stock has shed 34% year-over-year.
  4. Walgreens Boots Alliance Inc (NASDAQ:WBA) stock is pointed lower this morning, down 1.3% in electronic trading after The Wall Street Journal reported the drugstore chain reached out to AmerisourceBergen (ABC) about a possible takeover. WBA already owns a 26% stake in ABC. Walgreens stock has shed 10% in the past month, selling off with the broader market. 
  5. Cleveland Fed President Loretta Mester will speak this morning, while the economic calendar is relatively bare. Martin Marietta Materials (MLM), MetLife (MET), Pepsi (PEP), TransUnion (TRU), Twilio (TWLO), and Western Union (WU) will report earnings.

stock market news february 13

Japan Sits Out Asia's Advance

It was a mostly higher finish in Asia today, as traders took a bullish cue from Wall Street. Hong Kong's Hang Seng outpaced its regional peers, adding 1.3% as property stocks and financial shares surged. With just one more trading day ahead of the week-long Lunar New Year break, China's Shanghai Composite rose 1%. South Korea's Kospi also finished in the green, up 0.4%. Japan's Nikkei, however, closed down 0.7% following the long holiday weekend, as the yen strengthened against the U.S. dollar.

European markets are mixed at midday, though price action is relatively muted given recent volatility. Earnings are in focus, with a negative reaction for Belgium-based media firm Telenet weighing on the telecommunications sector, and shares of TUI climbing after the German travel company reported a slimmer-than-expected quarterly loss. At last check, the German DAX was down 0.09%, and the French CAC 40 was off 0.03%. London's FTSE 100, on the other hand, is up 0.2%, as mining stocks pop and data showed inflation rose at a higher-than-expected rate in January.

 

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