Dow Futures Trade Lower With Apple

Apple stock is off 2% ahead of the bell after a downgrade to "hold" at HSBC

by Karee Venema

Published on Dec 4, 2018 at 9:17 AM
Updated on Dec 4, 2018 at 9:23 AM

Dow Jones Industrial Average (DJIA) futures are signaling a lower start, as Wall Street reacts to a lack of details surrounding a U.S.-China trade truce. Optimism surrounding the deal sent stock markets surging to start the month, but Bloomberg reports no paper trail exists and Beijing has yet to confirm any commitments. A reversal for tech shares is also applying pressure, with FAANG stock Apple (AAPL) set to open 2% lower on a fresh downgrade. Oil prices, on the other hand, are trading higher once again, with January-dated crude futures up 1.5% at $53.73 per barrel.

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

us stock index futures fair value on dec 4

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.08 million call contracts traded on Monday, compared to 609,209 put contracts. The single-session equity put/call ratio rose to 0.57, and the 21-day moving average remained at 0.69.
  2. RH, the home goods retailer formerly known as Restoration Hardware Holdings, Inc (NYSE:RH), reported third-quarter adjusted profit of $1.73 per share on $636.6 million in revenue -- more than analysts were expecting. The company also raised its current-quarter and full-year forecasts. After closing last night at $123.65, RH shares are up 18.9% in electronic trading, set to open near the site of an early September bear gap.
  3. The selling isn't over for Aphria Inc (NYSE:APHA), which plunged to a new record low of $5.60 yesterday after a scathing short seller note questioned the cannabis producer's Latin American purchases. APHA shares eventually settled at $6.05, but are bracing for a 15% drop out of the gate after the firm called the report "malicious and self-serving."
  4. Dollar General Corp. (NYSE:DG) reported stronger-than-expected adjusted third-quarter earnings of $1.31 per share on $6.42 billion in revenue. However, a number of natural disasters and higher fuel costs caused the discount retailer to cut its full-year profit and sales guidance. In reaction, DG stock is down 4.7% in premarket trading, and could test recent support at its 120-day moving average -- currently located near $106.
  5. Motor vehicle sales are due today, while New York Fed President John Williams is slated to speak. G-III Apparel (GIII), Hewlett Packard Enterprise (HPE), and Marvell Technology (MRVL) will report earnings. U.S. markets will be closed Wednesday.

stocks in the news premarket dec 4

Auto Sector Weighs on Tokyo, European Stocks

Asian markets were a mixed bag today, as the global optimism from the weekend’s U.S.-China trade truce ultimately proved to be short-lived. China's Shanghai Composite bucked the broader trend and edged up 0.4%, but questions remain over future trade talks with the U.S. delegation. Hong Kong's Hang Seng added 0.3% following a volatile session, while South Korea's Kospi shed 0.8%. Elsewhere, Japan's Nikkei dropped 2.4%, snapping a seven-day winning streak as automaker Nissan deals with the fallout of Carlos Ghosn’s arrest.

Speaking of autos, car stocks are also dragging European benchmarks lower. The auto sector is staring at steep losses today, as trade uncertainties creep back into the spotlight. The tech sector is also pulling back, with German-based chipmaker Siltronic down over 3% thanks to its heavy exposure to China.  At last check, the French CAC 40 and German DAX are down 0.6% and 0.7%, respectively. London's FTSE 100 is down 0.7%, with the pound surging after a European court official said the U.K. could legally overturn its Brexit decision without consulting European Union (EU) states.


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