S&P and Nasdaq-100 futures are in the red, however
Dow Jones Industrial Average (DJI) futures are trading above fair value this morning, overcoming earlier weakness to now signal a nearly triple-digit jump at the open for the index. It's another huge day of Dow earnings, with Boeing (BA) setting the tone with an impressive quarterly report that has the shares ready to rally at the open. There will be plenty of action after the close, as well, with names like Microsoft (MSFT), Visa (V), and Tesla (TSLA) all preparing to report. However, futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are below fair value, as chip stocks prepare for another rough day.
Outside of corporate earnings, traders will be watching oil prices after yesterday's sell-off. At last check, December-dated crude futures were up 40 cents, or 0.6%, at $66.83 per barrel.
Continue reading for more on today's market, including:
- What the unusual VIX performance means for stocks, courtesy of Schaeffer's Senior Quantitative Analyst Rocky White.
- How options traders reacted to yesterday's blue-chip earnings.
- Why Citron is changing its tune on Tesla ahead of earnings.
- Plus, Sirius XM set to pop; another semiconductor loser; and AT&T earnings disappoint.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.16 million call contracts traded on Tuesday, compared to 705,894 put contracts. The single-session equity put/call ratio moved up to 0.61, and the 21-day moving average remained at 0.65.
- Elsewhere on the earnings front, Sirius XM Holdings Inc (NASDAQ:SIRI) is gaining 3.3% in pre-market hours, after the company hiked its full-year earnings forecast. The shares needed a lift after hitting their lowest point since February yesterday, as they've struggled since the company announced plans to buy Pandora (P) in September, with an Amazon partnership failing to generate positive buzz.
- Texas Instruments Incorporated (NASDAQ:TXN) is set to drop over 6%, after the company issued a weak current-quarter outlook. TXN stock has been trending lower in recent months, yesterday falling to its lowest price of 2018 during a sector-wide slide in chip stocks.
- AT&T Inc. (NYSE:T) is another notable earnings loser, with the stock pointed down 3.6% before the open, after earnings for the third quarter fell short of estimates. T shares remain well below their early 2018 highs near $39, after the 200-day moving average recently rejected a rally attempt.
- New home sales and the weekly crude inventories report are both slated for release today. St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester will also speak. Traders will digest corporate earnings from Advanced Micro Devices (AMD), Ford Motor (F), Hilton (HLT), UPS (UPS), and Whirlpool (WHR).
Energy Stocks Cap Asian Markets' Upside
Stocks in Asia closed mixed, with a dip in energy stocks limiting gains. Japan's Nikkei managed to close 0.4% higher, with help from the electronic and cosmetics sectors. Meanwhile, China's Shanghai Composite also posted a modest gain, and finished up 0.3%. On the flip side, Hong Kong's Hang Seng and South Korea's Kospi both suffered a 0.4% loss.
European markets are respectably higher in afternoon trading, as a handful of strong earnings and outperforming retail stocks offset the latest eurozone PMI, which fell to a two-year low of 52.7 in October. Plus, the shares of Deutsche Bank are tanking after the financial giant reported a drop in third-quarter profit. At last check, London's FTSE 100 is up 1.2%, France's CAC 40 is 1.3% higher, and Germany's DAX is flirting with a 0.9% gain.