Dow Futures Lower on Gloomy Europe Growth Forecast

The European Commission cut its growth forecast for the eurozone

by Andrea Kramer

Published on Feb 7, 2019 at 9:08 AM

Dow Jones Industrial Average (DJI) futures are pointing to a triple-digit drop today, on renewed concerns about the health of the global economy. The European Commission reduced its 2019 economic growth forecast for the eurozone, citing international trade tensions. In addition, traders are digesting the latest round of earnings reports, with several stocks -- including Twitter (TWTR) -- set to open lower on weak guidance.

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

  • The signal saying jump ship on Carnival.
  • The media stock that just hit new highs on digital growth. 
  • Options traders are flocking to 3 volatile stocks
  • Plus, lackluster outlooks from Twitter and Tapestry, and the retail stock with a new "buy" rating.

OV futures chart Feb 7

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.00 million call contracts traded on Wednesday, compared to 640,447 put contracts. The single-session equity put/call ratio jumped to 0.64, and the 21-day moving average stayed at 0.63.
  2. Twitter Inc (NYSE:TWTR) stock is down 7.5% in pre-market trading, after the social media company said the number of users dropped in the fourth quarter. The company also forecast current-quarter revenue below expectations. TWTR shares have rallied since their December lows, but have stalled around their 200-day moving average.
  3. Tapestry Inc (NYSE:TPR) shares are pointed 11.1% lower, after the luxury retailer reported weaker-than-expected fiscal second-quarter sales and issued lackluster full-year guidance. Prior to today, TPR was sitting on a 16.5% year-to-date gain.
  4. The shares of Guess?, Inc. (NYSE:GES) are up 1.6% in electronic trading, after Jefferies upgraded the equity to "buy" from "hold." GES stock has been in a channel of lower highs and lows since their Aug. 30 peak of $26.95, closing Wednesday at $20.22.
  5. Today's economic schedule will bring weekly jobless claims and the Fed balance sheet. St. Louis Fed President James Bullard will speak after the close. Dunkin (DNKN), GrubHub (GRUB), Kellogg (K), Mattel (MAT), PG&E (PGC), Qorvo (QRVO), T-Mobile US (TMUS), Tyson Foods (TSN), and Yum! Brands (YUM) will all report earnings.
     

hot stocks feb 7

Bank of England Cuts Growth Forecast

Markets in Asia were slightly off today. Japan's Nikkei gave back 0.6%, despite a big surge from telecom giant SoftBank Group, which announced a $5.46 billion stock buyback. South Korea's Kospi, on its first trading day of the week, finished just fractionally lower. Both China's Shanghai Composite and Hong Kong's Hang Seng remain closed for observation of the Lunar New Year.

In Europe, stocks are taking a hit as a fresh batch of corporate earnings roll in. London's FTSE 100 is down 0.3%, after tourist name Tui AG slashed its profit outlook. Meanwhile, the Bank of England slashed its growth and inflation estimates, yielding the U.K.'s worst economic outlook since 2009. The French CAC 40 is off by 0.9%, driven lower by a post-earnings crash from advertising and PR firm Publicis Groupe. But the sharpest drop comes from the German DAX, down 1.6% at last check.

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