Stock Futures Inch Higher As Earnings Offset Trade Drama

The Nasdaq is gunning for a eighth straight win

by Patrick Martin

Published on Aug 9, 2018 at 9:19 AM

U.S. stock futures are cautiously higher this morning, as a fresh batch of corporate earnings tries to offset escalating trade tensions with China. Dow Jones Industrial Average (DJI)S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are all signaling marginal gains, as the tech-rich Nasdaq aims for its eighth straight victory. Elsewhere, weekly jobless claims rose for the first time in three weeks, while the producer price index (PPI) was unchanged in July.

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

Stock Futures Chart Aug 9

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 922,686 call contracts traded on Wednesday, compared to 571,882 put contracts. The single-session equity put/call ratio dropped to 0.62, while the 21-day moving average remained at 0.63.
  2. Party City (NYSE:PRTY) stock is up 4.1% in electronic trading, after the company reported per-share earnings above expectations. In addition, the party supplier said it will launch a pilot program to sell goods on Amazon (AMZN) before Halloween this year. PRTY ended at $15.75 yesterday.
  3. Yelp Inc (NYSE:YELP) stock is up 15.3% ahead of the bell, after the review site reported second-quarter earnings that surpassed Wall Street projections, while upping its fiscal-year guidance. No fewer than seven price-target hikes have ensued, including to $57 from $53 at J.P. Morgan Securities. Yelp stock had fallen to an annual low of $36.41 on July 30, but today's price action could put YELP back above its 200-day moving average.
  4. Another big earnings winner is Roku Inc (NASDAQ:ROKU), up 12.5% in electronic trading, after the streaming name reported second-quarter earnings and revenue above analyst forecasts, and increased its guidance for 2018. Three analysts have already chimed in with bull notes, including a price-target hike to $59 from $50 at Oppenheimer. ROKU stock has alredy soared 150% in the past nine months, landing at $47.25 on Wednesday.
  5. On the economic front, today will bring us weekly jobless claims. Dropbox (DBX), News Corp (NWSA), Planet Fitness (PLNT), Synaptics (SYNA), Universal Display (OLED), and Viacom (VIAB) will step into the earnings confessional.

stock market news august 9

Economic Data Boosts China Stocks

Most Asian markets ended higher today, led by mainland China after the country's July exports rose by a stronger-than-forecast 12.2% annually. The Shanghai Composite popped 1.9%, while Hong Kong's Hang Seng tacked on 0.9%, and South Korea's Kospi edged up 0.1%. On the flip side, Japan's Nikkei backpedaled 0.2%, pressured by losses for auto stocks after Tokyo's transport ministry flagged improper fuel economy and emissions testing practices for multiple carmakers.

Stocks in Europe are faltering at midday, with energy stocks pacing the laggards. Corporate earnings are also in focus; in Frankfurt, Adidas is up nearly 9% after a second-quarter profit beat, while pharma giant Merck KGaA and steel name Thyssenkrupp are both trading lower after their respective reports. At last check, London's FTSE 100 is down 0.7%, the French CAC 40 is off 0.3%, and Germany's DAX has dipped 0.1%.

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