The final reading on first-quarter GDP was downwardly revised to 2%
Futures on the Dow Jones Industrial Average (DJI) are signaling a negative start, with the blue-chip index set to continue the downside momentum created during yesterday's big reversal. While Wednesday's afternoon sell-off was sparked by weakness in the tech sector, today's pre-market action could be the result of the final reading on first-quarter gross domestic product (GDP), which was downwardly revised to 2% from 2.2%.
Traders are also reacting to news that U.S. President Donald Trump and Russian President Vladimir Putin will meet in Helsinki, Finland, on Monday, July 16. Whatever the reason, the Dow is bracing for a steep drop at the open, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also wallowing in red ink.
Continue reading for more on today's market, including:
- Volatility traders bet on another summer VIX spike.
- The oil and gas stock squeezing shorts lately.
- A quick look at GE's post-Dow performance.
- Plus, the drug stock headed for record lows; BBBY stock drops on same-store sales miss; and heavy selling hits Europe.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 959,777 call contracts traded on Wednesday, compared to 640,650 put contracts. The single-session equity put/call ratio jumped to 0.67, while the 21-day moving average stayed at 0.56.
- Arsanis Inc (NASDAQ:ASNS) said it is discontinuing a mid-stage trial for its pneumonia drug, saying it was unlikely to meet its main goal. After being halted earlier, ASNS stock was last seen trading down 75% ahead of the bell -- on track to open at a record low below $5 per share. Since going public last November, the biotech has never traded in single-digit territory, and hit an all-time peak of $28.69 on March 15.
- Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported an unexpected 0.6% drop in same-store sales in the first quarter. This is offsetting an earnings beat of 33 cents per share on in-line revenue of $2.8 billion, with BBBY stock bracing for a 5% drop out of the gate. Ahead of last night's quarterly report, BBBY shares were trading near a trendline that's been a reliable sell signal for the retail stock.
- Energous Corp (NASDAQ:WATT) said it's teamed up with IDT International to distribute its WattUp wireless charging technology. WATT stock is up 6.3% in electronic trading, set to bounce from its 200-day moving average -- a trendline that served as a springboard back in early April, as well.
- Weekly jobless claims rose by 9,000 to 227,00 last week. Later today, the Fed's balance sheet and a speech from St. Louis Fed President James Bullard are due. KB Home (KBH) will report earnings.
China Stocks Continue to Fall
Trading action in Asia was dominated by an extended slide in Chinese shares, leaving the Shanghai Composite deeper in bear market territory. China’s main equity benchmark dropped another 1%, its fourth straight loss, failing to hold gains from early in the session and hitting another two-year low. The Hang Seng still managed modest gains in Hong Kong, however, ending up 0.5%. Turning to Japan, stocks waffled throughout the day, and the Nikkei closed with a fractional loss. South Korea’s Kospi joined the losers with a 1.2% decline as the tech sector struggled.
There is heavy selling pressure throughout European stock markets, too. In addition to the uncertainty surrounding global trade relations, a 2.1% annualized pop in German consumer prices last month has pushed the euro higher, weighing on stocks. Germany’s DAX is off 1.2% at last check, while France’s CAC 40 is down 0.6%, and London’s FTSE 100 has shed 0.2%.