Fed speeches, tech, and the greenback are also in focus today
Futures on the Dow Jones Industrial Average (DJI) are signaling a lower start this morning, after the blue-chip index logged its third straight loss on Tuesday. As trade negotiations between the U.S. and Canada get set to resume today, data showed the domestic trade deficit surged 9.5% in July. Traders will also be watching a round of Fed speeches and a gathering of tech CEOs on Capitol Hill, and keeping a close eye on the U.S. dollar -- which has strengthened lately as emerging markets struggle.
Continue reading for more on today's market, including:
- Top stock picks for contrarian traders, courtesy of Schaeffer's Senior Quantitative Analyst Rocky White.
- Analysts rush to raise AMD price targets.
- This oil stock buy signal has never been wrong.
- Plus, Cronos lights up the charts; the retailer set to slump; and a fresh "sell" rating for Robert Half.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.02 million call contracts traded on Tuesday, compared to 604,418 put contracts. The single-session equity put/call ratio fell to 0.59, and the 21-day moving average remained at 0.61.
- Cronos Group Inc (NASDAQ:CRON) shot up nearly 13% on Tuesday to close at $11.15 -- well above Citron Research's price target -- after the Canada-based cannabis firm announced a partnership with biotech Ginkgo Bioworks to develop "high-purity" cannaboids. This upside is set to continue today with CRON trading 20% higher ahead of the bell, and set to open at a new record high.
- RH (NYSE:RH), formerly Restoration Hardware, reported a second-quarter adjusted profit beat of $2.49 per share. However, quarterly revenue of $640.8 million missed the mark, while the home furnishings retailer also cut its full-year revenue forecast. Against this backdrop, RH stock is bracing for a 4.8% drop out of the gate, and could test familiar support at its 50-day trendline.
- Goldman Sachs downgraded Robert Half International Inc. (NYSE:RHI) to "sell" from "neutral," and cut its price target to $67 from $70, citing valuation concerns. Shares of the human resource firm are up 41.8% year-to-date based on last night's close at $78.78, but are down 4.3% in electronic trading.
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Motor vehicle sales are slated for release today, while speeches from New York Fed President John Williams, Minneapolis Fed President Neel Kashkari, and Atlanta Fed President Raphael Bostic are also anticipated. AeroVironment (AVAV), Ctrip.com (CTRP), Duluth Holdings (DLTH), Secureworks (SCWX), Vera Bradley (VRA), and Verint Systems (VRNT) will report earnings.
There were sharp losses in Asian stock markets, as the major benchmarks tracked their U.S. counterparts. Hong Kong's Hang Seng had the biggest setback, down 2.6% at the close due to weakness out of tech heavyweights, including Tencent. Meanwhile, China's Shanghai Composite dipped 1.7%, and the Nikkei gave back 0.5% in Japan as automakers struggled yet again. Rounding out the region, South Korea's Kospi fell 0.4%.
The selling has spread to Europe, too. Tech stocks are some of the most notable losers, while pharmaceutical giant Bayer is also lower after earnings. At last check, France's CAC 40 is down 0.8%, Germany's DAX is 0.6% lower, and London's FTSE 100 is down 0.4%.