Stock Futures Point to Uneasy Pre-Fed Session

The Trump-Kim meeting didn't produce any major surprises for Wall Street

Managing Editor
Jun 12, 2018 at 9:14 AM
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Following the highly anticipated U.S.-North Korea summit, futures on the Dow Jones Industrial Average (DJI) and the Nasdaq-100 Index (NDX) are both trading flat. The historic meeting, which took place in Singapore, concluded with President Donald Trump and North Korean leader Kim Jong-Un signing a document wherein Pyongyang committed "to work toward complete denuclearization of the Korean Peninsula," though the agreement was light on details. Now, traders are bracing for the start of the two-day Federal Open Market Committee (FOMC) meeting, with policymakers expected to announce a rate hike tomorrow afternoon. 

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

  • Why the odds of a post-Fed pullback are higher than usual, according to Schaeffer's Senior V.P. of Research Todd Salamone.
  • Fitbit stock could double, says one notorious research firm.
  • The luxury retailer flashing a short-term bearish signal.
  • Plus, Dave & Buster's post-earnings surge; an "overweight" rating for Weight Watchers; and a mixed finish for Asian markets.

Futures Chart June 12

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.03 million call contracts traded on Monday, compared to 558,167 put contracts. The single-session equity put/call ratio fell to 0.54, while the 21-day moving average remained at 0.58.
  2. Dave & Buster's Entertainment Inc (NASDAQ:PLAY) is 14.2% higher in pre-market trading, after the company last night reported fiscal first-quarter results that surpassed forecasts. PLAY has been on a fresh trend higher since the end of May, but is still 13.3% lower year-to-date.
  3. Also set to soar from a fiscal first-quarter earnings beat is home retailer RH (NYSE:RH), up 21% in pre-market trading. While revenue fell short of expectations, RH hiked its fiscal 2018 forecast. Just yesterday, RH stock touched a fresh record high of $119.75.
  4. J.P. Morgan Securities this morning initiated coverage on Weight Watchers International, Inc. (NYSE:WTW) with an "overweight" rating and a $105 price target. WTW has been on a tear since early 2017, and is now up 218% year-over-year. The stock touched a record high of $88.44 last Thursday.
  5. Aside from the start of the two-day FOMC meeting, today brings the consumer price index (CPI), the NFIB small business optimism index, and the Treasury budget. Casey's General Stores (CASY) and H&R Block (HRB) are scheduled to report earnings.

stock market news june 12

Trump-Kim Summit Pushes Asian Markets Higher

Asian stock markets traded mostly higher during the Trump-Kim meeting, though gains were somewhat limited across the board. China’s Shanghai Composite overcame early losses to rally to a 0.9% win, snapping a three-day losing streak in the process. Hong Kong’s Hang Seng also rose, finishing up 0.1%. In Japan, the Nikkei got a boost from a weakening yen and settled up 0.3%, while South Korea’s Kospi dipped 0.1%.  

There’s less enthusiasm in Europe, where major equity benchmarks are seeing weak price action at midday. After positive starts, London’s FTSE 100 and France’s CAC 40 were last trading down 0.2% and 0.1%, respectively. Germany’s DAX has also pulled back some from its opening move, but the index is sporting a fractional gain. Traders in the region also digested wage data out of the U.K., which was weaker than expected in April, while looking ahead to the upcoming European Central Bank (ECB) meeting.

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