Inflation Data, Oil Rebound Prop Up Stock Futures

October's CPI was in line with analyst expectations

Managing Editor
Nov 14, 2018 at 9:15 AM
facebook twitter linkedin


Futures on the Dow Jones Industrial Average (DJI) are pointing to a strong open, vaulting higher after the consumer price index (CPI) rose 0.3% in October, on par with analyst expectations. The core CPI rose at an annual rate of 2.1%, compared to last month's 2.2% growth. Even plummeting oil prices appear ready to rebound. At last check, December-dated crude futures were up 1% to trade at $56.23 per barrel, on track to snap a historic 12-day losing streak. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are climbing too, with retail giant Macy's (M) a big winner on the earnings front. Elsewhere, a Bloomberg report indicated the White House could hold off on auto tariffs for the time being.

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

  • Rare S&P 500 signal just flashed for the first time since 2015.
  • This Apple supplier hit new lows after disappointing guidance.
  • Options traders reacted to General Electric stock's bounce.
  • Plus, SNAP gets subpoenaed; Blue Apron announces pink slips; and Sangamo Therapeutics gets downgraded.

Stock Futures Chart Nov 14

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 876,613 call contracts traded on Tuesday. This is compared to 613,813 put contracts. The single-session equity put/call ratio fell to 0.70, and the 21-day moving average climbed to 0.68.
  2. Snap Inc (NYSE:SNAP) stock is down 5.2% in electronic trading, after disclosing that the U.S. Justice Department and Securities and Exchanges Commission (SEC) have issued subpoenas regarding the company's initial public offering (IPO). SNAP, which has shed 54% year-to-date, fell to a record low of $5.77 on Oct. 26, after the Snapchat parent reported declining daily active users. 
  3. Blue Apron Holdings Inc (NYSE:APRN) stock is up 1.6% ahead of the bell, after the company reported a slimmer-than-expected third-quarter earnings loss. The meal delivery name also announced it will reduce its workforce by 4% in an effort to become profitable in 2019. APRN rallied in late October after a partnership with Walmart (WMT), but was ultimately turned away by its 40-day moving average.
  4. Shares of Sangamo Therapeutics Inc (NASDAQ:SGMO) are down 4.7% in electronic trading, after J.P. Morgan Securities downgraded the biotech stock to "neutral" from "overweight," while slashing its price target to $11 from $35. Shares of the genome editing firm have already shed 34% in 2018, and fell to an annual low of $9.81 on Monday. 
  5. The MBA mortgage index is slated for release today. Fed Chair Jerome Powell and Dallas Fed President Robert Kaplan will speak at 5 p.m. ET, and Fed Vice Chair Randal Quarles and is scheduled to speak in the morning. Dow name Cisco Systems will step into the earnings confessional, as will Canopy Growth (CGC), NetApp (NTAP), Vipshop (VIPS), and Williams-Sonoma (WSM). 

buzz stocks nov 14

Oil Pressures Asian, European Markets

Slumping oil prices took their toll on most Asian markets today, with Chinese stocks bearing the brunt of the selling pressure. China's Shanghai Composite closed down 0.9% after data showed retail sales slowed in October -- though industrial output, fixed-asset investment, and infrastructure spending picked up. Elsewhere in the region, Hong Kong's Hang Seng shed 0.5%, and South Korea's Kospi fell 0.2%. Japan's Nikkei managed to buck the bearish bias, though, tacking on 0.2%. 

European benchmarks are mixed at midday, with traders eyeing Brent crude prices -- last seen trading up 1.3%. Italy's budget deficit is also in focus, after the country failed to revise fiscal targets, as called for by the European Union. At last check, the German DAX is down 0.3% after third-quarter gross domestic product (GDP) contracted for the first time since 2015, and the French CAC 40 is off 0.04%. London's FTSE 100 is up 0.2%, though, as U.K. Prime Minister Theresa May meets with cabinet members to discuss Brexit. 


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners