Stock Futures Take a Breather Amid China Tariffs

The S&P 500 and Nasdaq win streaks are in jeopardy

by Patrick Martin

Published on Aug 8, 2018 at 9:15 AM

U.S. stock futures are lagging this morning, pulling back after another strong session yesterday. Investor sentiment is being weighed down by escalating trade tensions, after China announced a 25% retaliatory tariff on $16 billion of U.S. goods, most notably crude oil and cars. Dow Jones Industrial Average (DJI) futures are just below fair value, as traders digest subpar earnings results from Walt Disney (DIS). S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are lower as well, with their fifth and seventh straight wins, respectively, in danger. 

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

  • The best sectors for contrarians right now, per Schaeffer's Senior Quantitative Analyst Rocky White.
  • Elon Musk's Tesla tweet caused options to fly off the shelves.
  • Nike stock has room to run.
  • Plus, Amazon introduces curbside pickup; Lumentum nabs a big earnings win; and Snapchat's daily active users drop.

Stock Futures Chart Aug 8

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 963,316 call contracts traded on Tuesday, compared to 617,763 put contracts. The single-session equity put/call ratio rose to 0.64, while the 21-day moving average remained at 0.63.
  2. Amazon.com, Inc. (NASDAQ:AMZN) stock is up 0.8% in electronic trading, after the e-commerce giant introduced grocery pickup at select Whole Foods stores. The curbside pickup could happen within 30 minutes of Prime Now users placing their order. AMZN stock nabbed a record high of $1,880.05 on July 27, and yesterday notched its second-highest close ever, landing at $1,862.48.
  3. Lumentum Holdings Inc (NASDAQ:LITE) stock is up 8.8% ahead of the bell, after the optics name reported fiscal fourth-quarter earnings and revenue that vastly exceeded analyst expectations. The company also issued an upbeat outlook. LITE stock is on track to trade above its 80-day moving average for the first time since the company's CFO departure in early June. 
  4. Shares of Snap Inc (NYSE:SNAP) are down 3.3% in electronic trading, after the Snapchat parent's second-quarter earnings beat forecasts, but daily active users dropped. The firm also issued weaker-than-expected revenue guidance. SNAP shares have added nearly 20% in the past three months, but appear to have run out of steam near their 100-day moving average.
  5. The MBA mortgage index, weekly crude inventories report, and a speech from Richmond Fed President Tom Barkin are expected on later today. Stepping into the earnings confessional will be ACADIA Pharmaceuticals (ACAD), Booking Holdings (BKNG), Cars.com (CARS), CRISPR Therapeutics (CRSP), CVS Health (CVS), DepoMed (DEPO), Dillard's (DDS), e.l.f. Beauty (ELF), Horizon Pharma (HZNP), Monster Beverage (MNST), Mylan (MYL), New York Times (NYT), Roku (ROKU), SINA (SINA), Twenty-First Century Fox (FOXA), Weibo (WB), and Yelp (YELP).

stock market news august 8

Trade Worries Weigh On Asian Markets

Asian markets finished the day mixed, as trade worries continued to escalate. Among the losers were Japan's Nikkei, which finished 0.08% lower, and China's Shanghai Composite, which suffered a 1.2% loss. On the flip side, Hong Kong's Hang Seng brought in 0.4%, and South Korea's Kospi managed a 0.06% gain.

Stocks in Europe are higher in afternoon trading, shaking off the weight of poor earnings out of the retail and healthcare sectors. At last glance, London's FTSE 100 is up 0.8%, France's CAC 40 is 0.03% higher, and Germany's DAX is seeing a 0.3% gain.

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