Dow Futures Lower Amid Bad News for Blue Chips

Home prices cooled in December

Deputy Editor
Feb 26, 2019 at 9:09 AM
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Dow Jones Industrial Average (DJI) futures are lower today, dragged down by Caterpillar (CAT) and Home Depot (HD) stocks. Specifically, CAT received a downgrade to "sell" from UBS, and HD reported fourth-quarter earnings that fell short of expectations. In addition, Wall Street is weighing the S&P Corelogic Case-Shiller home price index, with home prices in December rising at the slowest annual pace since August 2015. Elsewhere, traders are awaiting testimony from Fed Chair Jerome Powell, who will make his regularly scheduled appearance before Congress today.

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

  • Feeling nervous? Pick up puts, says Schaeffer's Senior V.P. of Research Todd Salamone. 
  • The key level that traders were targeting ahead of Macy's earnings
  • 2 gene therapy stocks soaring on buyout buzz.  
  • Plus, Musk takes aim at the SEC; more on the CAT downgrade; and Etsy reports an earnings beat. 

Futures Chart Feb 26

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.23 million call contracts traded on Monday, compared to 685,238 put contracts. The single-session equity put/call ratio dropped to 0.56, and the 21-day moving average dropped to 0.60.
  2. Tesla Inc (NYSE:TSLA) stock dropped 3.2% in pre-market trading, after founder Elon Musk responded to Securities and Exchange Commission (SEC) claims that he violated a fraud settlement by tweeting misleading information regarding Tesla production, and failed to get approval from the Tesla board. The CEO bit back with yet another tweet, saying "something is broken with SEC oversight." TSLA stock has seen recent pressure at its 30-day moving average, and is down more than 10% in 2019.
  3. Caterpillar Inc. (NYSE:CAT) shares are 3.2% lower ahead of the bell, after UBS downgraded the construction company to "sell" from "buy." The analyst expects “downward earnings revisions to pressure the stock over the next 12 months.” Since bottoming at $112.06 in late October, CAT stock has added 26% to end Monday at $141.41.
  4. The shares of Etsy Inc (NASDAQ:ETSY) are up 9.1% in electronic trading, after the e-tailer reported fourth-quarter earnings that beat analysts' estimates and posted a strong revenue forecast for 2019. ETSY stock has been trading in a channel of higher highs and lows since October, and is now pacing for a new record high. 
  5. The economic schedule will feature housing starts and consumer confidence data. Powell will begin his testimony to Congress in the morning. As far as earnings, Acadia Pharmaceuticals (ACAD), AutoZone (AZO), Clovis Oncology (CLVS), Cracker Barrel (CBRL), GW Pharma (GWPH), Lumber Liquidators (LL), Mallinckrodt plc (MNK), Mylan NV (MYL), Papa John's (PZZA), Tandem Diabetes (TNDM), and Toll Brothers (TOL) are all slated.

stock market news feb 26

 

Asia Looks Toward Tariff Talks; Europe Falters on Brexit Deadline Extension 

Markets in Asia pulled back today after Monday delivered solid gains across the board. Investors are searching for concrete details behind trade talk progress between the U.S. and China, even after President Donald Trump extended the March 1 deadline. China's Shanghai Composite and Hong Kong's Hang Seng both shed 0.7%. South Korea's Kospi gave back 0.3% thanks to a rough outing from Samsung Electronics, while Japan's Nikkei lost 0.4% amid a softening yen.

Over in Europe, markets are also stuck in the red. The pound rose after a Bloomberg report indicated U.K. Prime Minister Theresa May was considering delaying the March 29 deadline to leave the European Union. In addition, the Labour Party indicated it would back a public Brexit vote should parliament reject its plan. London's FTSE 100 is down 0.7% at last check, while the French CAC 40 and German DAX both are nursing 0.1% losses.

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