Auto giant GM is also under pressure following its quarterly results
Dow Jones Industrial Average (DJI) futures are trading below fair value this morning, following a mostly disappointing round of earnings on Wall Street. Dow component Boeing (BA) is set to open sharply lower, after the company issued a tepid outlook for the rest of the year, and it's a similar setup for automaker General Motors (GM), which slashed its full-year forecast on higher aluminum and steel prices as a result of recent tariffs.
Speaking of which, trade tensions could continue to grab headlines today, with President Donald Trump set to speak with European Commission President Jean-Claude Juncker this afternoon. Corporate earnings will likely remain the bigger story, however, with names like Visa (V) and Facebook (FB) reporting after the bell.
Continue reading for more on today's market, including:
- 10 perfect stocks for contrarian traders, courtesy of Schaeffer's Senior Quantitative Analyst Rocky White.
- 2 healthcare stocks analysts love.
- How options traders reacted to Riot Blockchain's rise.
- Plus, another deal in the genetics space; UPS e-commerce demand drives earnings; and Waymo expands self-driving services.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.03 million call contracts traded on Tuesday, compared to 647,937 put contracts. The single-session equity put/call ratio settled at 0.63, while the 21-day moving average edged up to 0.62.
- GlaxoSmithKline Plc (NYSE:GSK) reported earnings, and the pharma firm said it struck a four-year collaboration with DNA company 23andMe to develop medicines using human genetics. The deal includes a $300 investment from GSK, and has the option to be extended to a fifth year. GSK stock is up 16.2% in 2018, closing Tuesday at $41.21. The shares are 1.3% higher ahead of the bell.
- United Parcel Service, Inc. (NYSE:UPS) stock is up 0.7% before the open, after the company reported stronger-than-expected earnings thanks to rising e-commerce demand. UPS stock has struggled in 2018, gapping lower shortly after its January record high near $136, and failing to recover despite recent bullish attention from analysts.
- Alphabet Inc's (NASDAQ:GOOGL) Waymo is partnering with more companies to expand its self-driving car services. The company just announced deals with Walmart and Avis, among others, for the Phoenix area, with specific services tied to each company. GOOGL shares closed at $1,258.15 yesterday after hitting an all-time high after earnings.
- New home sales and the weekly crude inventories update will hit the Street today. Coca-Cola (KO), Advanced Micro Devices (AMD), Ford Motor (F), Freeport-McMoRan (FCX), GrubHub (GRUB), Hilton Hotels (HLT), Mattel (MAT), Norfolk Southern (NSC), PayPal (PYPL), and Qualcomm (QCOM) are expected to report earnings.
European Stocks Slip Ahead of Trump-Juncker Meeting
Markets in Asia finished mixed today. On the plus side, Japan's Nikkei added 0.5%, as metal stocks rallied on hopes of a Beijing stimulus plan. Hong Kong's Hang Seng also gained ground, rising 0.9%, as tech and financial shares surged. However, China's Shanghai Composite snapped its three-day win streak to close down 0.04%, while South Korea's Kospi gave back 0.3%.
European stocks are lower at midday, as caution sets in ahead of the Trump-Juncker trade meeting. Investors are also panning the latest round of corporate earnings, with shares of Deutsche Bank lower after the German lender's results, and LVMH stock higher on a positive reaction to the French retailer's report. At last check, London's FTSE 100 is down 0.8%, the French CAC 40 is off 0.1%, and the German DAX is down 0.7% -- even as the Ifo business climate index for July came in at a better-than-expected 101.7.