Stock Futures Slide with Oil as OPEC Eyes Output

China stocks settled sharply lower as trade tensions continue to weigh on sentiment

Managing Editor
Jun 21, 2018 at 9:14 AM
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Futures on the Dow Jones Industrial Average (DJI) are trading below fair value, as trade tensions simmer and the focus shifts to oil against the backdrop of a highly anticipated Organization of the Petroleum Exporting Countries (OPEC) meeting. Cartel heavyweight Saudi Arabia is pushing for a substantial production increase, with that news pushing August crude futures 1.1% lower to trade at $65 per barrel. 

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

  • 2 outperforming travel stocks with cheap options.
  • Analyst: Buy shares of this FAANG competitor.  
  • Another pair of bear notes for Intel stock.  
  • Plus, Verizon stock lands a bull note; Kroger reports impressive earnings; and another analyst initiates coverage on SPOT.

Dow Futures Chart June 21

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.02 million call contracts traded on Wednesday, compared to 575,236 put contracts. The single-session equity put/call ratio fell to 0.56, while the 21-day moving average remained at 0.57.
  2. Goldman Sachs upgraded Verizon Communications Inc. (NYSE:VZ) to "buy" from "neutral" and raised its price target to $56 from $51, describing the company as a long-term leader in broadband. VZ has been pinned below its 200-day moving average for the bulk of the second quarter, but the stock continues to rack up "buy" ratings from analysts. VZ is up 1.5% in electronic trading.
  3. Grocery chain Kroger Co (NYSE:KR) is up 9% in pre-market trading, after the company reported a first-quarter earnings and revenue beat, and hiked the low end of its full-year profit forecast. KR has been inching its way higher on the charts this month, and is currently on pace to gap up toward four-month highs at the open.
  4. Spotify Technology SA (NYSE:SPOT) is 1.8% higher in electronic trading after brokerage firm Macquarie initiated coverage on the stock with an "outperform" rating and a $225 price target. SPOT has gained 33.6% since its public trading debut in early April, reaching an all-time high of $180 just last Thursday.
  5. Today's economic calendar will feature weekly jobless claims, the FHFA home price index, the index of leading economic indicators, and the Fed's balance sheet. Barnes & Noble (BKS), Finish Line (FINL), Red Hat (RHT), and Patterson Companies (PDCO) will report earnings.

pre-market stock movers june 21

Lingering Trade Fears Push Chinese Stocks Lower

Stocks mostly struggled throughout Asia, though Japan’s Nikkei managed to buck the regional sell-off. The Tokyo-based index grabbed a 0.6% win thanks to broad gains out of the tech sector, as well as expectations of dividend payouts at month’s end. On the other hand, China’s Shanghai Composite and Hong Kong’s Hang Seng both fell 1.4%. While the indexes started the day in positive territory, lingering trade fears eventually led them to close near session lows, with the Shanghai Composite suffering its lowest close in over two years. Elsewhere, the South Korean Kospi dipped 1.1%.

In Europe, the major equity benchmarks are lower at midday. Investors are monitoring OPEC-related headlines and a sharp pullback in Brent crude futures, which is weighing on energy stocks. Also in focus is the Bank of England’s latest policy decision, with the central bank this morning announcing it will leave interest rates unchanged -- though a growing belief that an interest-rate hike is on the horizon has the pound pushing higher. London's FTSE 100 is down 0.7% at last check, while the French CAC 40 has shed 0.5%, and the German DAX is down 0.8%.


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