Nasdaq Futures Signal Another Tech Stock Outperformance

Apple stock is up 4% ahead of the opening bell

Managing Editor
May 2, 2018 at 9:19 AM
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Dow Jones Industrial Average (DJI) futures are trading slightly below fair value this morning, despite impressive earnings from Apple (AAPL) -- which posted better-than-expected profit and revenue in its fiscal second quarter, despite iPhone sales falling short, and gave a $100 billion boost to its share repurchase program. The FAANG stock is up 4% in pre-market trading, and as a result, Nasdaq-100 Index (NDX) futures are signaling another tech stock outperformance today. Traders will now turn their attention to the Fed policy statement, due out this afternoon. Ahead of this, the ADP employment report showed the U.S. added 204,000 private sector jobs last month, slightly higher than anticipated. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White discusses why a high yield curve is better for stocks.
  • Options bears profited on tumbling steel stocks.
  • Breaking down this huge bearish options bet on Citrix stock.
  • Plus, YUM sinks after weak sales growth; Snapchat redesign weighs on Snap revenue; and CVS toasts earnings beat.

Stock Futures Chart May 2

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 772,602 call contracts traded on Tuesday, compared to 525,886 put contracts. The single-session equity put/call ratio rose to 0.68, while the 21-day moving average stayed at 0.64.
  2. Yum! Brands, Inc. (NYSE:YUM) stock is down 4.2% in electronic trading, after the fast food giant's first-quarter comparable sales missed estimates, on weak KFC and Pizza Hut traffic -- though adjusted profit and revenue beat. YUM stock secured a record high of $88.07 on Monday, but is now in danger of breaching its 40-day moving average for the first time since March. 
  3. Snap Inc (NYSE:SNAP) stock is down 19% ahead of the bell, after the company reported lower-than-anticipated first-quarter revenue and user growth following a disappointing Snapchat redesign. Snap also gave a dismal current-quarter revenue forecast, and was hit with a host of bearish analyst attention this morning. SNAP stock is now at risk of trading near its Aug. 14 record low of $11.28. 
  4. Shares of CVS Health Corp (NYSE:CVS) are up 2% in electronic trading, after the drugstore chain reported first-quarter earnings and revenue beyond analyst expectations, thanks to higher prescription drug sales. CVS stock has added 16% since its five-year low of $60.14 on March 27.
  5. Today brings the MBA mortgage index and weekly crude inventories. 3D Systems (DDD), Avis Budget (CAR), Cerner (CERN), Chesapeake Energy (CHK), Cirrus Logic (CRUS), FireEye (FEYE), Fitbit (FIT), Humana (HUM), Kraft Heinz (KHC), Marathon Oil (MRO), Qorvo (QRVO), SodaStream (SODA), Southern (SO), Spotify (SPOT), Square (SQ), Tesla (TSLA), and Wayfair (W) will report earnings.

stock market news may 2

Asian Stocks Drop Despite Boost for Apple Suppliers

Stocks in Asia finished today mostly lower. Though Apple's first-quarter earnings beat sent a handful of its Asian suppliers higher, equities were dragged down by underperforming oil, steel, and auto sectors. Traders also exercised caution ahead of the Fed’s policy meeting. Japan's Nikkei finished down 0.2%, Hong Kong's Hang Seng ended 0.3% lower, and South Korea's Kospi closed down 0.4%. The Shanghai Composite ended flat.

European markets are modestly higher at midday, thanks to a round of upbeat corporate earnings and higher Apple suppliers. Outside of earnings, the latest gross domestic product (GDP) data indicated the eurozone economy grew at a slower-than-anticipated pace in the first quarter. London's FTSE 100 is 0.4% higher, France's CAC 40 is up 0.1%, and Germany's DAX is seeing 1.2% gains, at last check.

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