Dow Futures Higher as Stocks Eye Weekly Win

Corporate earnings today have mostly been upbeat

Josh Selway
Oct 19, 2018 at 9:11 AM
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Stocks are signaling a comeback after another big sell-off yesterday. Dow Jones Industrial Average (DJIA) futures are trading nearly 100 points above fair value, getting help from well-received earnings out of blue chips American Express (AXP) and Procter & Gamble (PG). Futures are also higher for the S&P 500 Index (SPX) and Nasdaq-100 (NDX), setting stocks up for a potential weekly win.

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

us stock futures oct 19b

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 924,537 call contracts traded on Thursday, compared to 679,274 put contracts. The single-session equity put/call ratio rose to 0.73, and the 21-day moving average edged up to 0.64.
  2. PayPal Holdings, Inc. (NASDAQ:PYPL) is set for a major earnings win, just as analysts were expecting. The shares are up 7.4% in pre-market trading, as earnings topped expectations thanks to strong growth from the company's Venmo business. PYPL shares settled at $77.48 yesterday, down from their Sept. 13 peak of $93.70.
  3. Ford Motor Company (NYSE:F) is set to hit new lows today following a downgrade to "equal weight" from "overweight" at Morgan Stanley, which also reduced its price target to $10 from $14. The stock is already down 31% year-to-date, but options traders have remained interested in call buying.
  4. Harley-Davidson Inc (NYSE:HOG) is also pacing for a lower open today after a bear note. BMO downgraded HOG stock to "market perform" from "outperform," and lowered its price target to $45 from $52. The shares have been chopping near two-year lows since May.
  5. Today will feature reports on existing home sales. Atlanta Fed President Raphael Bostic is scheduled to speak. Honeywell (HON), Schlumberger (SLB), and State Street (STT) will report earnings. Next week's earnings schedule is dominated by FAANG stocks.

stock market news oct 19 2

Investors React to China GDP Data

Markets in Asia closed mixed today, after China's gross domestic product (GDP) report came in just below estimates. The 6.5% growth for the third quarter marked the slowest pace of expansion in over nine years, but the Shanghai Composite closed 2.6% higher after the China Securities Regulatory Commission (CSRC) announced new measures to prop up the faltering stock market. South Korea’s Kospi and Hong Kong’s Hang Seng both added 0.4%, while Japan’s Nikkei suffered a 0.6% pullback on falling machinery stocks.

Stocks in Europe are mixed in afternoon trading as disappointing earnings from the auto and travel sectors weigh heavy. Also in focus are Italian banks amid the back and forth between Rome and the European Commission, regarding Italy's "particularly serious non-compliance" with structural deficit guidelines in its 2019 budget. At last check, London’s FTSE 100 is up 0.5%, France’s CAC 40 is down 0.5%, and Germany’s DAX is just fractionally higher.


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