Stock Futures Mixed After PPI Surprise; Florence Fuels Crude Gains

October-dated crude is trading above the $70-per-barrel mark

by Karee Venema

Published on Sep 12, 2018 at 9:19 AM
Updated on Sep 12, 2018 at 9:28 AM

Futures on the Dow Jones Industrial Average (DJI) are trading modestly above fair value this morning, as Wall Street digests the latest inflation update. The Labor Department said the producer price index (PPI) unexpectedly declined 0.1% last month, marking the first drop in wholesale prices since February 2017. Traders will also be watching Apple (AAPL) today -- with the iPhone maker slated to kick off its annual product event at 1 p.m. ET -- and oil prices, which are surging ahead of Hurricane Florence's expected landfall later this week. At last check, October-dated crude futures are up 1.1% at $70.02 per barrel.

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

  • This volatility signal hints at a sluggish September for stocks, according to Schaeffer's Senior Quantitative Analyst Rocky White.
  • China news sparked volatility in these 2 stocks.
  • Why Visa stock could be a prime target for options bulls.
  • Plus, Micron gets hit with another bear note; Snap stock eyes record lows again; and one drug stock braces for an 89% drop.

us stock index futures fair value on sept 12

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 913,473 call contracts traded on Tuesday, compared to 556,172 put contracts. Both the single-session equity put/call ratio and the 21-day moving average arrived at 0.61.
  2. Goldman Sachs downgraded Micron Technology, Inc. (NASDAQ:MU) to "neutral" from "buy," and slashed its price target by $18 to $50, citing DRAM and NAND oversupply concerns. This bear note echoes a growing trend among analysts, and has MU shares trading down 4% ahead of the bell. The chip stock has plunged nearly 17% already this month, and closed below its 320-day moving average for the fist time in more than two years yesterday.
  3. Snap Inc (NYSE:SNAP) is set for another volatile session, with the Snapchat parent's shares down 5.1% in pre-market trading -- on track to open at their second new record low of the week. Following yesterday's Wedbush upgrade, the stock was downgraded to "sell" from "neutral" at BTIG, while Jefferies cut its SNAP price target to $11 from $14.
  4. Vital Therapies Inc (NASDAQ:VTL) said it will explore strategic options after suspending the development of its experimental cell-based therapy for liver failure after a disappointing study. Plus, William Blair -- which upgraded the drug stock a little over a month ago on optimism surrounding the treatment -- cut its rating to "market perform." VTL is bracing for an 89% drop out of the gate, and is set to open at an all-time low share price of $0.70.
  5. The Fed's Beige Book is due today, while St. Louis Fed President James Bullard and Fed Governor Lael Brainard will speak. Oxford Industries (OXM), Pivotal Software (PVTL), and Tailored Brands (TLRD) will report earnings.

stock market news sept 12

European Stocks Up Amid Rumors of May Ouster

It was another down day for Asian stock markets, highlighted by fresh lows from Hong Kong's Hang Seng and China's Shanghai Composite. The Hang Seng fell 0.3% to notch a sixth straight loss, sinking deeper into bear-market territory, while the Shanghai index followed suit with its own 0.3% drop. Traders considered the ongoing feud between the U.S. and China, including reports that China is seeking to impose sanctions on the U.S. through the World Trade Organization (WTO). Japan's Nikkei and South Korea's Kospi both fell as well, down 0.3% and 0.01% at the close, respectively.

Meanwhile, stocks in Europe are exploring positive territory at midday. For the most part, market headlines are surrounding the latest Brexit developments, with reports indicating Conservative Party members met to discuss the potential ouster of British Prime Minister Theresa May. Moreover, Bloomberg reported that the U.K. and European Union have agreed to a special meeting to sign a Brexit deal in November. At last check, London's FTSE 100 is up 0.2%. Elsewhere, Germany's DAX is up 0.1%, and France's CAC 40 has gained 0.5%.


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