Stock Futures Drop on Caterpillar, Nvidia Guidance

President Trump said another government shutdown is "certainly an option"

by Patrick Martin

Published on Jan 28, 2019 at 9:16 AM
Updated on Jan 28, 2019 at 4:39 PM

Dow Jones Industrial Average (DJI) futures are sharply lower, with the index set to give back all the gains from Friday's temporary government shutdown relief. Investors still remain wary of political gridlock, after President Donald Trump told the Wall Street Journal on Sunday that another government shutdown is "certainly an option." Also pressuring markets this morning is an earnings miss and lackluster outlook from blue chip Caterpillar (CAT), and cut guidance from Nvidia (NVDA) is weighing on chip stocks. Both companies cited deteriorating business conditions in China.

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

Stock Futures Chart Jan 28

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.36 million call contracts traded on Friday, compared to 696,172 put contracts. The single-session equity put/call ratio fell to 0.51, and the 21-day moving average slipped to 0.63. 
  2. Electronic Arts Inc. (NASDAQ:EA) stock is down 0.6% in electronic trading, after Stifel trimmed its price target to $111 from $127. EA, which was recently under pressure after a "Star Wars" video game backlash, has added 16.3% year-to-date. However, the shares are encountering a stiff ceiling at their 80-day moving average.
  3. PG&E Corporation (NYSE:PCG) is down 8.2% before the bell, after Bloomberg reported the utility company had skipped settlement payments for 2015 fire victims in Butte. Amid massive insurance liabilities, PCG is set to file for bankruptcy. The stock tagged a record low of $5.07 on Jan. 15, and has shed 75% of its value in the last three months. 
  4. The shares of CRISPR Therapeutics AG (NASDAQ:CRSP) are down 5% ahead of the bell, after Goldman Sachs downgraded the gene editing concern to "neutral" from "buy." The move echoes that of Citigroup, which last week downgraded CRSP stock to "sell." The equity has dropped more than 17% in the past year.
  5. The week will start with the Chicago Fed National Activity Index and the Dallas Fed manufacturing survey. Earnings season continues to pick up steam, with AK Steel (AKS) and Whirlpool (WHR) reporting.

stock market news jan 28

Asian Stocks Lower; European Markets Dip With Energy Stocks

It was a mostly lower finish in Asia today, as caution set in ahead of this week's key events, including a U.S. Fed meeting and the latest trade negotiations between Washington and Beijing. China's Shanghai Composite fell 0.2%, after data showed industrial profit fell for a second consecutive month in December. Japan's Nikkei also closed lower, shedding 0.6% as SoftBank slipped 1.2%, while South Korea's Kospi closed fractionally lower as chip stocks SK Hynix and LG Electronics sank 3.8% and 2.6%, respectively. Hong Kong's Hang Seng, meanwhile, eked out a 0.03% gain.

European markets are lower at midday, as energy stocks fall in step with Brent crude prices, with the latter last seen down 1.6%. Traders are also looking ahead to European Central Bank (ECB) President Mario Draghi's testimony in front of the European Parliament. At last check, the French CAC 40 is down 0.6%, the German DAX is off 0.4%, and London's FTSE 100 is flirting with a 0.5% loss ahead of tomorrow's parliamentary vote on Prime Minister Theresa May's "Plan B" for Brexit.


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