Stock Futures Gain On Strong Earnings

Verizon is an earnings winner this morning

Jul 24, 2018 at 9:06 AM
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Dow Jones Industrial Average (DJI) futures are trading above fair value this morning, as a strong round of corporate earnings is set to lift stocks. Leading the way is an impressive earnings report from Google parent Alphabet (GOOGL), which could provide tailwinds for FAANG stocks and the broader tech sector. Meanwhile, blue chips 3M (MMM), United Technologies (UTX), and Verizon (VZ) have also released quarterly reports this morning, with shares of the latter trading sharply higher before the open.

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

  • Our trader breaks down some of this market's mixed messages.
  • The e-commerce stock flashing "buy" before earnings.
  • Amazon stock sank after the latest Trump attack.
  • Plus, earnings deliver for Verizon bulls; Harley-Davidson beats; and Lockheed tries to come back.

stocks today

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.04 million call contracts traded on Monday, compared to 567,194 put contracts. The single-session equity put/call ratio fell to 0.55, while the 21-day moving average came in at 0.61.
  2. VZ shares are up 2.6% before the open, which'll put them near the $52 area that's blocked the previous two breakout attempts. The company's second-quarter earnings and revenue were better than expected, driven by a surprisingly strong increase in monthly subscribers. The results seem to confirm the beliefs of a number of analysts that had turned bullish on Verizon this year.
  3. Harley-Davidson Inc (NYSE:HOG) has struggled this year amid the tariff wars, falling 18.5% to last night's close of $41.45. However, the company topped expectations with its second-quarter results, and HOG stock is up 3.6% before the open. That's bad news for short sellers, who control almost 10% of the float.
  4. Also on the earnings front, defense giant Lockheed Martin Corporation (NYSE:LMT) is up almost 3% in pre-market trading. The company's profit for the second quarter was above forecasts, and it also raised its full-year outlook. LMT stock got off to a hot start in 2018, but in recent months the price action has been weak. For example, it closed Monday at $318.33, compared to a record high of $363 from February.
  5. Today we will see the release of Markit's flash composite purchasing managers index (PMI). AT&T (T), Biogen (BIIB), Centene (CNC), Eli Lilly (LLY) iRobot (IRBT), JetBlue (JBLU), Kimberly-Clark (KMB), Las Vegas Sands (LVS), Lockheed Martin (LMT), PACCAR (PCAR), Quest Diagnostics (DGX), and Sherwin-Williams (SHW) make up the earnings calendar.

stock market news july 24

Stimulus Plans Boosts Chinese Markets

Markets closed strong in Asia today, with Chinese stocks leading the charge. Specifically, the Shanghai Composite surged 1.6%, after the country's State Council proposed several stimulus measures to boost the economy -- including increased infrastructure spending. Hong Kong's Hang Seng also had a big day, adding 1.4%, while Japan's Nikkei and South Korea's Kospi each tacked on 0.5%.

Stocks in Europe are higher at midday, with traders cheering the news out of China. Plus, a round of strong quarterly results is helping lift investor sentiment, with Swiss bank UBS and French car maker Peugeot among those trading higher after earnings. At last check, the German DAX is 1.5% higher, the French CAC 40 is up 1%, and London's FTSE 100 is enjoying a 0.9% lead.

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