Wall Street's 'fear gauge' is nearing its lowest point since January
U.S. stock futures are higher this morning, as trade tensions with China take a backseat to a host of corporate earnings. Dow Jones Industrial Average (DJI) futures are up almost triple digits ahead of a quarterly report from media giant Walt Disney (DIS). S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are climbing as well, with the former eyeing a fresh all-time high. Energy stocks are in focus, as oil prices rise on reimposed U.S. sanctions on Iran. At last check, September-dated crude futures were 1.1% higher at $69.74 per barrel. Elsewhere, the Cboe Volatility Index (VIX), Wall Street's "fear gauge," is heading toward its lowest levels since January.
Continue reading for more on today's market, including:
- The levels that could slow small-cap stocks, per Schaeffer's Senior V.P. of Research Todd Salamone.
- How to play this auto stock sell signal.
- Options bulls charged BLNK stock amid Tesla rumors.
- Plus, Hertz posts a surprise earnings beat; Alibaba consolidates units; and Bausch Health cheers an earnings beat.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 883,603 call contracts traded on Monday, compared to 550,287 put contracts. The single-session equity put/call ratio rose to 0.62, while the 21-day moving average climbed to 0.63.
- Hertz Global Holdings Inc (NYSE:HTZ) stock is up 5.3% in electronic trading, after the rental car company reported a slimmer-than-expected second-quarter loss. Revenue also topped estimates. Hertz stock, which typically struggles in August, fell to an annual low of $13.40, on July 18 and had racked up a 29% year-to-date deficit as of Monday's close at $15.67.
- Alibaba Group Holding Ltd (NYSE:BABA) stock is up 1.1% ahead of the bell, after it was reported the Chinese e-commerce giant is merging its food delivery units and raising funding for the combined entity. BABA stock has given back 15% since its June 5 record high of $211.69, but still remains a chip-shot above its year-to-date breakeven level.
- Shares of Bausch Health Companies (NYSE:BHC), formerly Valeant Pharmaceuticals, are up 3.6% in electronic trading, after the drug firm reported second-quarter earnings and revenue that exceeded analyst forecasts. The company also raised its full-year revenue guidance, citing higher sales of its bowel disorder drugs. BHC is on track to break past its 20-day moving average, a trendline that has served as resistance since late June.
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Today will bring the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) and the Fed's consumer credit report. A busy day for earnings, 3D Systems (DDD), Avis Budget (CAR), Boot Barn (BOOT), Children's Place (PLCE), Crocs (CROX), Fossil (FOSL), Halozyme Therapeutics (HALO), Host Hotels (HST), Hostess Brands (TWNK), Lending Club (LC), Match Group (MTCH), Momenta Pharmaceuticals (MNTA), Papa John's (PZZA), Shutterfly (SFLY), Spark Therapeutics (ONCE), and Wendy's (WEN) are scheduled to report earnings.
Asian Markets, European Stocks Join Global Rally
Stocks in Asia saw big gains in today's trading, recovering from the reignited trade tensions that pressured Monday's action. The largest advances came from China's Shanghai Composite and Hong Kong's Hang Seng Index, which rose 2.7%, and 1.5%, respectively. Japan's Nikkei ended 0.7% higher on the back of an impressive quarterly report from telecommunications name SoftBank Group, which added 6.5% on the day. Lastly, South Korea's Kospi managed to gain 0.6%.
European markets are also seeing notable gains at midday, led by a surge in German auto stocks that has pushed the DAX is 0.8% higher, neck and neck with France's CAC 40. London's FTSE 100 is leading the way with a 0.9% lift as the pound remains under pressure.