Dow Win Streak at Risk After Home Depot Earnings

Home Depot's lower-than-expected revenue is burning the Dow

by Patrick Martin

Published on May 15, 2018 at 9:18 AM
Updated on May 15, 2018 at 9:29 AM

The Dow Jones Industrial Average (DJI) is pointed lower in pre-market trading, which could put the blue-chip index's shot at a nine-day winning streak in jeopardy. A negative earnings reaction for Home Depot (HD) is pressuring Dow futures, after the retailer's first-quarter revenue and same-store sales came in lower-than-expected. Traders are also keeping a cautious eye on the 10-year Treasury yield, which climbed back above the key 3% mark for the first time since April. Elsewhere, monthly retail sales rose 0.3% in May, on par with expectations. 

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

  • 5 sentiment facts that could create tailwinds for stocks, courtesy of Schaeffer's Senior V.P. of Research Todd Salamone.
  • 2 casino stocks bombarded by options traders.
  • Why one analyst said now is the time to buy AMD stock.
  • Plus, Ulta Beauty stock gets upgraded; Morgan Stanley sees trouble ahead for Tesla; and Symantec updates on accounting probe.

Stock Futures Chart May 15

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 932,964 call contracts traded on Monday, compared to 577,082 put contracts. The single-session equity put/call ratio jumped to 0.62, while the 21-day moving average fell to 0.62.
  2. Ulta Beauty Inc (NASDAQ:ULTA) stock is up 1.9% in electronic trading, after receiving an upgrade to "outperform" from "perform" at Oppenheimer. The beauty retailer also received a price-target hike to $280 from $220. ULTA stock has gained 10% in 2018, and has been guided higher by its ascending 20-day moving average since early April.
  3. Tesla Inc (NASDAQ:TSLA) stock is down 2.6% ahead of the bell, after Morgan Stanley cut its price target o $291 from $376, as well as itsshort- and long-term auto margin forecasts. The analyst expressed concern over several fundamental hurdles, including Model 3 production and the recent executive restructuring. Tesla stock fell to an annual low of $244.59 on April 2, and recent comeback attempts have been foiled in the $308-$310 region. 
  4. Shares of Symantec Corporation (NASDAQ:SYMC) are up 2.7% in electronic trading, after the software company said its accounting probe would not have any material impact on financial statements. In response, Jefferies upgraded the stock to "hold," and issued a price-target hike to $22. Cowen chimed in with a hike of its own, to $21. Symantec stock still has a long way to go to fill its bear gap from last week, though. 
  5. Today will feature the National Association of Home Builders (NAHB) housing market index, Treasury International Capital data, and business inventories. Boot Barn (BOOT) will step in to the earnings confessional. 

premarket stock movers may 15

Tech Sell-Off Hits Asia, Earnings Boost Europe

Stocks in Asia finished today mostly lower, as a tech sell-off hit the region. Japan's Nikkei shed 0.2%, Hong Kong's Hang Seng lost 1.2%, and South Korea's Kospi took a 0.7% loss. China's Shanghai Composite was the only advancer, picking up 0.6% on stronger-than-forecast industrial output data. 

European markets are modestly higher at midday, propped up by bank stocks after a round of well-received earnings. Meanwhile, Brent crude futures are pushing higher following yesterday's Organization of the Petroleum Exporting Countries (OPEC) meeting.  London's FTSE 100 is up 0.3%, Germany's DAX is 0.01% higher, and France's CAC 40 is 0.3% higher at last check.

Halliburton Put Options Pricey Ahead of Earnings
HAL has been struggling since its mid-May highs
Oil Stock's Buy Signal Has Never Been Wrong
The stock has pulled back recently with crude oil prices
CLF Stock Nears Bullish Trendline Ahead of Earnings
Cleveland-Cliffs stock has been a long-term outperformer
From Schaeffer's Pro Traders
Weekly Options Secrets Revealed

Direct from our Schaeffer's traders, your FREE guide to winning with weekly options!


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

Access the #1 Marijuana IPO of 2018
Get ready for an influx of pot stock profits.
China Stock Halted After 300% Spike
The stock has been halted most of the day
Earnings, Fed Minutes Result in See-Saw Week for Stocks
Netflix and a handful of Dow stocks moved on earnings
Access the #1 Marijuana IPO of 2018
Get ready for an influx of pot stock profits.