Dow Jones Industrial Average (DJI) futures are trading modestly above fair value this morning, with Wall Street's focus staying on earnings and global relations. For earnings, Dow components 3M (MMM), Pfizer (PFE), and Verizon (VZ) all reported this morning, and Apple (AAPL) is set to reveal its quarterly report after the close. On the international front, the Trump administration last night unveiled new charges against Huawei, the latest in the saga between the U.S. and Chinese tech giant that could damage trade talks between the two nations.
Continue reading for more on today's market, including:
- Schaeffer's Senior V.P. of Research Todd Salamone assesses the post-shutdown risk for stocks.
- This drug stock downgraded ahead of earnings tonight.
- Puts popped after Nvidia slashed its revenue guidance.
- Plus, GameStop gets crushed; Harley set to slide; and Lockheed's numbers come up short.
5 Things You Need to Know Today
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The Chicago Board Options Exchange (CBOE) saw 820,622 call contracts traded on Monday, compared to 624,306 put contracts. The single-session equity put/call ratio rose to 0.76, and the 21-day moving average stayed at 0.63.
- Yesterday GameStop Corp. (NYSE:GME) was under pressure due to reports Apple was considering a streaming video game service. The stock will again be in focus today, after the company this morning announced it's ending its pursuit of a sale, sending the shares down more than 20% pre-market.
- Harley-Davidson Inc (NYSE:HOG) is another major loser before the open, set to fall more than 10% after the company's fourth-quarter earnings report fell short of the Street's expectations. The drop would put HOG shares back near their late-December lows near $32, good news for the short sellers who control more than 9% of the float.
- Looking at other earnings disappointments, Lockheed Martin Corporation (NYSE:LMT) stock is in the red in electronic trading. The aerospace giant not only missed with its fourth-quarter earnings, but issued a downbeat earnings outlook for 2019. LMT shares have gained nearly 20% since their Dec. 26 low, amid chatter of increased military spending.
- Traders will also digest data on international trade, the S&P Corelogic Case-Shiller home price index, and consumer confidence today. The aforementioned blue chips will report earnings, along with Advanced Micro Devices (AMD), Biogen (BIIB), Brinker International (EAT), and eBay (EBAY).
Stocks in Europe Higher Before Brexit Vote
Asian stocks finished mixed, with stocks in China and Hong Kong underperforming after the U.S. filed charges to extradite Meng Wanzhou, chief financial officer of Huawei. The Shenzhen-based telecom was also charged with stealing trade secrets from T-Mobile. At the close, China's Shanghai Composite was down 0.1%, while Hong Kong's Hang Seng had slipped 0.2%. Elsewhere in the region, though, Japan's Nikkei ticked up 0.08%, and South Korea's Kospi gained 0.3%.
Ahead of today's Brexit vote, European markets are notably higher, with U.K. stocks handily outpacing their peers. The utilities sector is one of the stronger performers, with some pointing to its safe-haven appeal. Most recently, London's FTSE 100 is up 1.4%, the French CAC 40 is flirting with a 0.9% lead, and the German DAX has tacked on 0.2%.