Dow Futures Drop After Weak Nike Sales

Eurozone manufacturing data is fueling concerns about a global economic slowdown

by Patrick Martin

Published on Mar 22, 2019 at 9:20 AM

Dow Jones Industrial Average (DJI) futures are sharply below fair value this morning, under pressure after retail giant Nike (NKE) reported weaker-than-expected North American sales for its fiscal third quarter. Plus, concerns about slowing global economic growth raised after the Fed meeting earlier this week are being exacerbated today after dismal manufacturing data out of the eurozone. Now, a weekly win for the blue-chip index could be in jeopardy, though the S&P 500 Index (SPX) is likely to just pare its impressive week-to-date gain.

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

  • Wall Street is a fan of Ford's new CFO choice.
  • How options traders doubled their money with YUM stock.
  • Analyst: This healthcare stock could double.
  • Plus, GameStop gets a new boss; Apple supplier gets a big upgrade; and holiday sales miss buries Tiffany stock.

Stock Futures Chart March 22

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.29 million call contracts traded on Thursday, compared to 658,201 put contracts. The single-session equity put/call ratio fell to 0.51, and the 21-day moving average remained at 0.62.
  2. GameStop Corp. (NYSE:GME) stock is up 1% in electronic trading, after the video game retailer named George Sherman its new CEO, effective April 15. Loop Capital called the hire "impressive ... but no reason to get off the sidelines," while Jefferies trimmed its price target to $12 from $13. GME fell to a 14-year low of $10.35 yesterday.
  3. Lumentum Holdings Inc (NASDAQ:LITE) stock is up 4.8% ahead of the bell, after J.P. Morgan Securities raised its rating on the Apple supplier to "overweight" from "neutral," while boosting its price target to $65 from $50. LITE has added 41% since its Nov. 12 bottom of $37, but the overhead 200-day moving average has emerged as a ceiling.  
  4. Shares of Tiffany & Co. (NYSE:TIF) are down 3.9% in electronic trading, after the luxury retailer's fourth-quarter earnings beat estimates, but same-store sales and total revenue fell short of forecasts. Tiffany stock had added 37% from its Christmas Eve bottom near $73 through last night's close at $100.06, but now is in danger of surrendering a short-term foothold atop its 120-day moving average.
  5. Rounding out the week will be Markit's flash composite purchasing managers index (PMI), existing home sales, the Treasury budget, and speeches from Atlanta Fed President Raphael Bostic and Chicago Fed President Charles Evans. The earnings schedule features Hibbett Sporting Goods (HIBB) and JinkoSolar (JKS)

stock market news march 22

PMI Data Spooks European Stocks

There was cautious trading in Asian markets overnight, as traders look ahead to another round of trade talks next week between the U.S. and China. China's Shanghai Composite rose 0.09% and the Hang Seng added 0.1% in Hong Kong, as Tencent shares provided strength. In Japan, the Nikkei picked up 0.09% on the back of sharp gains out of Softbank, while investors also considered softer-than-expected inflation data. South Korea's Kospi closed with a 0.09% win, too. 

In Europe, the attention is on a round of frighteningly weak economic data. Namely, the eurozone's purchasing managers index (PMI) came in below expectations in March, and specific readings for Germany and France were also weak, with the former country’s manufacturing sector contracting for a third consecutive month. As such, London's FTSE 100 is down 1.4%, France's CAC 40 has shed 1.3%, and the German DAX was last seen 0.7% lower. 

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