Apple is reacting to bearish analyst attention, however
Dow Jones Industrial Average (DJI) futures are trading above fair value this morning, as stocks eye a comeback from yesterday's tech-led sell-off. The Nasdaq-100 (NDX) is signaling a positive open, too, thanks in part to news Facebook (FB) has made a number of improvements to its privacy settings, lifting the FAANG stock in pre-market trading. On the other hand, Apple (AAPL) is under pressure after Goldman Sachs cut its iPhone sales estimates.
Traders will also digest a full slate of economic data, led by this morning's final reading on fourth-quarter gross domestic product (GDP). Specifically, the 2.9% growth reported for the period was higher than the previous 2.5% estimate, and topped expectations of 2.7%.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 913,665 call contracts traded on Tuesday, compared to 649,671 put contracts. The single-session equity put/call ratio rose back to 0.71, and the 21-day moving average stayed at 0.64
- BlackBerry Ltd (NYSE:BB) topped earnings expectations on an adjusted basis thanks to continued growth from its enterprise software business, sending the stock 6% higher in pre-market trading. BB shares have pulled back some since their January high of $14.55, but have found support at the 50-day moving average.
- Lululemon Athletica inc. (NASDAQ:LULU) is also set to jump after earnings, as several analysts raised their outlooks following the company's blowout fourth-quarter results and upbeat current-quarter outlook. With a pre-market lead of 8% at last check, LULU stock is set to hit record highs after three months of tight consolidation.
- Apple Inc. (NASDAQ:AAPL) is in focus this morning after Goldman Sachs lowered its iPhone sales estimates for this current quarter and the next -- a sentiment echoed by RBC. Both firms lowered their price targets on Apple stock, to $159 and $203, respectively.
- International trade data, pending home sales, and the weekly crude inventories update will also be released. Earnings from GameStop (GME) are due, too.
Asian, European Markets Hit By Tech Sell-Off
The tech sell-off that sent U.S. stocks spiraling on Tuesday pushed Asian stocks lower today. Japan's Nikkei and South Korea's Kospi each fell 1.3%, led by declines for big tech names like Tokyo Electron, down 4.4% by the close, and Samsung Electronics, which gave up 2.6%. Hong Kong's Hang Seng gave back 2.5%, with BYD Company tanking 10.5% post-earnings, while China's Shanghai Composite dropped 1.4% on reports the Trump administration is looking to curb Chinese investment in sensitive technologies.
European markets are also pointed lower at midday. The German DAX is down 0.4% at last check, with chip stock Infineon Technologies sporting a 3.8% loss, while the French CAC 40 is off 0.6%. However, London's FTSE 100 is 0.07% higher at last check, propped up by a 15% rally from drug giant Shire after Japan's Takeda said it is in the "preliminary and exploratory stage" of a potential takeover offer.