Stock Futures Pummeled Amid Retail, Tech Sell-Off

Retail stocks are under pressure after several subpar quarterly reports

Managing Editor
Nov 20, 2018 at 9:12 AM
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Futures on the Dow Jones Industrial Average (DJI) are getting clobbered, down nearly 300 points, with stocks set to extend Monday's slide. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are doing no better, as several tech stocks and FAANG names continue to cruise into bear market territory. In addition, retailers are contributing to the bloodbath today, after several -- including Target (TGT) -- reported disappointing earnings.

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

  • Why bears shouldn't get too excited yet, per Schaeffer's Senior V.P. of Research Todd Salamone.
  • 2 reasons to dump this energy stock.
  • This penny stock soared on big weed news.
  • Plus, URBN rallying after an earnings beat; Walmart drops as rival Target struggles; and Lowe's prepares to extend a lengthy losing streak.

Stock Futures Chart Nov 20

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 932,034 call contracts traded on Monday. This is compared to 675,303 put contracts. The single-session equity put/call ratio fell to 0.72, and the 21-day moving average remained at 0.68.
  2. One retailer pointed higher this morning is Urban Outfitters, Inc. (NASDAQ:URBN), up 2% in electronic trading, after the apparel name reported third-quarter earnings and revenue that topped analyst expectations. Same-store sales also considerably rose. On the charts, URBN stock is set to snap a seven-day losing streak, but has found support at its 320-day trendline. 
  3. Walmart Inc (NYSE:WMT) stock is down 2.2% ahead of the bell, feeling the pinch in the wake of subpar quarterly results from rival Target (TGT). Walmart recently pivoted lower in the wake of its own earnings report last week, and is set to extend its losing streak to seven. Today's negative price action would also send the shares further below their year-to-date breakeven level.
  4. Shares of Lowe's Companies, Inc. (NYSE:LOW) are not exempt from the retail bloodbath today, down 7.9% in electronic trading, after the home improvement name reported smaller-than-expected same-store sales, while slashing its fiscal-year guidance. The company also said it will exit the Mexico retail business. Lowe's stock, which was the subject of some bear notes last week, is set to extend its losing streak to nine days, and yesterday closed below its 320-day trendline for the first time since May.
  5. Housing starts will be released later today. On the earnings front, Analog Devices (ADI), Autodesk (ADSK), Barnes & Noble (BKS), Best Buy (BBY), Campbell Soup (CPB), Children's Place (PLCE), Foot Locker, Gap (GPS), Hormel Foods (HRL), Kohl's (KSS), Medtronic (MDT), Ross Stores (ROST), and TJX Companies (TJX) will all report.

stock market news nov 20

Ghosn Arrest Weighs on Auto Stocks

Stocks in Asia sank, as the tech sell-off continued. The Shanghai Composite dropped 2.1%, while Hong Kong’s Hang Seng fell 2%. In Japan, speculators eyed the auto sector, as Nissan and Mitsubishi stocks plummeted following Monday’s arrest of CEO Carlos Ghosn. The Nikkei slipped 1.1% by the close. South Korea’s Kospi wasn’t excluded from the selling pressure, dropping nearly 0.9%.

Stocks in Europe are also lower across the board, with tech stocks down and banks underperforming amid Brexit concerns. In addition, Renault stock is extending its slide, amid reports that Nissan’s investigation into Ghosn is expanding to include the French parent. At last check, London’s FTSE 100 is down 0.5%, and France’s CAC 40 is 1.1% lower. Germany’s DAX is sitting on a 1.2% loss.

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