Stock Futures Lower as Oil Prices Plummet

October's producer price index rose by more than expected

Patrick Martin
Nov 9, 2018 at 9:16 AM
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Despite well-received earnings for Walt Disney (DIS), futures on the Dow Jones Industrial Average (DJI) are lower to finish the week. The index is set to snap a four-day winning streak, as oil prices wade deeper into bear market territory. At last check, December-dated crude futures were down $1, or 1.7%, at $59.64 per barrel. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are in the red as well, as traders digest the latest batch of inflation data on the heels of yesterday's Fed statement. October's producer price index (PPI) rose 0.6% for its biggest gain since 2012, exceeding economists' expectations. Through it all, though, the three benchmarks are still on track for weekly wins.

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

  • This rare S&P signal also flashed in early 2009. 
  • Behind the Etsy stock short squeeze.
  • Schaeffer's subscribers just doubled their money on Crocs calls.
  • Plus, GE eyeing 10-year lows after a bear note; Dropbox set to soar on earnings; and Goldman Sachs still has faith in Monster Beverage.

Stock Futures Chart Nov 9

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 936,771 call contracts traded on Thursday. This is compared to 596,764 put contracts. The single-session equity put/call ratio jumped to 0.64, and the 21-day moving average slid to 0.66.
  2. General Electric Company (NYSE:GE) stock is down 4.8% in electronic trading, after J.P. Morgan Securities issued a price-target cut to $6 from $10. The analyst in coverage said GE's recent earnings outcome was "worse than expected on all fronts." The former Dow name is on track to open at a fresh 10-year low, and had already shed nearly 48% in 2018 prior to today. 
  3. Dropbox Inc (NASDAQ:DBX) stock is up 10% ahead of the bell, after the cloud storage company reported third-quarter earnings and revenue that exceeded analyst expectations, while also upping its guidance due to an expanding customer base. RBC has issued a price-target hike to $37 in response. DBX shares fell to a record low of $21.36 back on Oct. 25, but are now on track to test their 80-day moving average for the first time since early August.
  4. Share of Monster Beverage Corp (NASDAQ:MNST) are up 1% in electronic trading, after Goldman Sachs upgraded the stock to "conviction buy." This is helping offset two price-target cuts from BMO and Citigroup, to $60 and $64, respectively. MNST gapped lower yesterday despite the company's earnings beat, but is still on track for a weekly win.
  5. The preliminary University of Michigan consumer sentiment index and data on wholesale inventories are also on the docket today, while New York Fed President John Williams, Philadelphia Fed President Patrick Harker, and Fed Vice Chair Randal Quarles all have speaking engagements. E.W. Scripps (SSP), Moneygram (MGI), Potbelly (PBPB), and Tribune Media (TRCO) will release their quarterly earnings

buzz stocks nov 9

Stocks in Asia Fall After Chinese Inflation Data

Asian markets closed lower in the wake of the U.S. Fed meeting. Hong Kong's Hang Seng shed 2.4%, while China's Shanghai Composite slid 1.4% following in-line readings on October's consumer price index and PPI. Elsewhere in the region, Japan's Nikkei gave back 1.1%, while South Korea's Kospi settled down 0.3% after President Moon Jae-in replaced a number of top economic policymakers.

European markets are in the red at midday amid pressure from losses in the energy and luxury goods sectors. At last check, London's FTSE 100 is off 0.7%, even after data showed gross domestic product for the U.K. grew at its fastest pace in nearly two years in the third quarter. Meanwhile, the German DAX is down 0.2%, while the French CAC 40 is 0.6% lower.


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