Stock Futures Lower Ahead of Fed Announcement

The central bank isn't expected to raise interest rates

by Patrick Martin

Published on Nov 8, 2018 at 9:13 AM

Futures on the Dow Jones Industrial Average (DJI) are signaling a lower open, with the index on track to snap a three-day winning streak. Investor attention now shifts away from the midterm elections and toward the Fed meeting, set to conclude at 2 p.m. ET today. While no monetary policy changes are expected, traders are likely to read carefully into the committee's language for clues about future policy decisions. 

S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also in the red this morning, as earnings season chugs along, with the former poised to end a three-day win streak of its own. Elsewhere, Tesla (TSLA) has generated headlines again, after Robyn Denholm replaced CEO Elon Musk as the company's board chair. 

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

  • Election Day was kind to this Dow stock.
  • 2 energy stocks red-hot after midterms.
  • Planet Fitness stock flexed its muscles after earnings.
  • Plus, Cardinal Health and Take-Two Interactive toast earnings beats; while Qualcomm sinks on weak guidance.

Stock Futures Chart Nov 8

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.13 million call contracts traded on Wednesday. This is compared to 669,016 put contracts. The single-session equity put/call ratio fell to 0.59, and the 21-day moving average remained at 0.67.
  2. Cardinal Health Inc (NYSE:CAH) stock is up 3.1% in electronic trading, after the pharmaceuticals distributor reported fiscal first-quarter earnings and revenue that exceeded analyst expectations. Should today's price action pan out, CAH would be on track to finish above its 160-day moving average for the first time since late April. 
  3. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) stock is up 4.9% ahead of the bell, after the video game maker's fiscal second-quarter earnings and revenue topped Wall Street estimates. The company also forecast strong current-quarter and full-year revenue, citing strong sales from its "Red Dead Redemption 2" game. TTWO is on track to slice through its 50-day moving average, a trendline of resistance in place for the last three weeks.
  4. Its not all rosy on the earnings front, though. Shares of Qualcomm, Inc. (NASDAQ:QCOM) are down 8.7% in electronic trading, after the chipmaker issued lackluster current-quarter guidance. The firm took a hit after Apple (AAPL) excluded its chips for the new iPhones. QCOM is set to erase its late-July bull gap, headed for the $57 area. 
  5. The usual report on weekly jobless claims is also set for release, while Dow stock Walt Disney (DIS) will unveil earnings. Activision Blizzard (ATVI), Cheniere Energy (LNG), Crocs (CROX), DR Horton (DHI), Dropbox (DBX), Funko (FNKO), Hertz Global (HTZ), NRG Energy (NRG), Olympic Steel (ZEUS), Skyworks Solutions (SWKS), and Yelp (YELP) will also report. 

hot stocks today nov 8

Asian Stocks Higher on Trade Data

Asian markets closed mostly higher today, after data showed Chinese exports surged 15.6% last month, while imports jumped 21.4% -- more than analysts were expecting. Although China's Shanghai Composite gave back early gains to finish down 0.2%, export stocks rallied in Japan, boosting the Nikkei to a 1.8% win. Elsewhere in the region, South Korea's Kospi climbed 0.7%, and Hong Kong's Hang Seng tacked on 0.3%.

European stocks are mixed at midday, as traders keep a close eye on budget tensions between the European Union and Italy. Corporate earnings are also in focus, with French bank name Societe Generale and German financial firm Commerzbank both up post-earnings. At last check, London's FTSE 100 is 0.4% higher, while the French CAC 40 is down 0.02% and the German DAX is off 0.09% -- the latter following an unexpected drop in German exports in October.

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