CAT shares are set to open up more than 3%
U.S. stock futures are pointing to a mixed open for stocks, though an upbeat earnings reaction for Caterpillar (CAT) has the Dow Jones Industrial Average (DJI) set for a positive start. The tepid pre-market price action could suggest traders are taking a wait-and-see approach ahead of a number of high-profile events this week, including the upcoming Fed meeting and tomorrow's earnings release from Apple (AAPL). In the meantime, investors today will digest data on manufacturing and housing, while also keeping an eye on rising oil prices, with September-dated crude futures up $1.39, or 2%, at $70.08 per barrel early on.
Continue reading for more on today's market, including:
- Another famous short seller is betting against Tesla.
- The $2 billion news that boosted Chesapeake Energy.
- Plus, CAT call buyers hit; Starbucks' China partner; and another tech earnings winner.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.18 million call contracts traded on Friday, compared to 789,657 put contracts. The single-session equity put/call ratio moved up to 0.67, while the 21-day moving average stayed 0.62.
- CAT shares are up more than 3% before the open, after the company topped estimates with its second-quarter results, and raised its full-year forecast. Call buying had been hot on the Dow name ahead of the event, even though the equity had been struggling in 2018 amid trade war concerns.
- Starbucks Corporation (NASDAQ:SBUX) is back in the headlines after last week's disappointing earnings release, thanks to reports that the company is partnering with Ele.me to provide deliveries in China. Making SBUX's recent struggles even worse is the success of rival Dunkin' Brands (DNKN).
- Seagate Technology PLC (NASDAQ:STX) stock is moving higher after earnings, after seeing heavy put trading on Friday. The company also said CFO David Morton will leave the company Aug. 3. STX shares were already up 68% on a year-over-year basis, and last week found support from the 160-day moving average.
- The pending home sales index and the Dallas Fed manufacturing survey are due out. AK Steel (AKS), Athenahealth (ATHN), Bloomin' Brands (BLMN), NutriSystem (NTRI), Papa John's (PZZA), SunPower (SPWR), and Transocean (RIG) will report earnings.
Tech Stocks Lead Asian Benchmarks Lower
Asian stocks closed lower, as tech stocks sold off across the region. In Hong Kong, a 1.6% decline for Tencent pressured the Hang Seng to a 0.3% loss. Elsewhere, China's Shanghai Composite gave back 0.1% -- marking its fourth straight drop -- while South Korea's Kospi finished 0.06% lower. Tokyo stocks retreated, too, with Japan's Nikkei shedding 0.7%, with this week's Bank of Japan policy meeting in focus.
European benchmarks are mixed at midday, as traders digest the latest round of corporate earnings reports. Among those making big post-earnings moves are Dutch beermaker Heineken -- which is lower at last check -- and German industrial firm GEA, which is higher in today's trading. Most recently, the German DAX is down 0.2%, while the French CAC 40 is off 0.1%. London's FTSE 100, however, is up 0.1%, as investors await this Thursday's Bank of England policy announcement.