First-quarter earnings season kicks off this week
Dow Jones Industrial Average (DJI) futures are trading below fair value, as caution sets in ahead of first-quarter earnings season. Boeing (BA) could also be a big drag on the blue-chip index today, with the newly downgraded Dow stock off 4.1% in electronic trading on news the company has slashed production of its grounded 737 MAX 8 aircraft. Against this backdrop, S&P 500 Index (SPX) futures are lower, too, with the index at risk of snapping its longest win streak since October 2017.
Continue reading for more on today's market, including:
- Why Jefferies thinks this pharma stock can double.
- Lyft call options were hot after the stock's rocky start.
- IPO buzz boosted this gaming stock to its best day of the year.
- Plus, a Street-low GE price target; another bull note for Snap; and Micron gets downgraded.
5 Things You Need to Know Today
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The Chicago Board Options Exchange (CBOE) saw 1.01 million call contracts traded on Friday, compared to 597,843 put contracts. The single-session equity put/call ratio remained 0.59, and the 21-day moving average stayed at 0.61.
- The shares of General Electric Company (NYSE:GE) are down 5.5% in electronic trading, after J.P. Morgan Securities Analyst Stephen Tusa downgraded the stock to "underweight" from "neutral," and cut his price target by $1 to a Street-low $5. GE has been hovering above $10 since a mid-March bull gap, but is set to open back in single-digit territory.
- RBC upgraded Snap Inc (NYSE:SNAP) to "outperform" from "sector perform," and boosted its price target to $17 from $10 -- a 43.6% premium to Friday's close at $11.84, and in line with SNAP's initial public offering (IPO) price. This is the just the latest bull note to roll in for the Snapchat parent, sending the stock up 4.5% ahead of the bell.
- Cowen and Company downgraded Micron Technology, Inc. (NASDAQ:MU) to "market perform" from "outperform," and reduced its price target to $45 from $46 -- a slight premium to Friday's close at $43.32. MU stock is bracing for a 2.4% drop out of the gate, and could fall back below its 200-day moving average, a trendline that contained a post-earnings rally in late March.
- Factory orders are due. The earnings calendar is bare, but will heat up later this week.
Boeing Supplier Safran Drops in Paris Trading
It was a mixed finish for Asian stock markets today, with traders in Hong Kong and on the mainland returning from a long holiday weekend to reports of fresh progress in U.S.-China trade talks via Beijing state media. Investors also reacted to Friday's strong U.S. jobs number, as well as a continued climb in Brent crude futures. By the close, Hong Kong's Hang Seng was up 0.5%, and South Korea's Kospi edged up 0.04%. On the other hand, Japan's Nikkei slipped 0.2%, and China's Shanghai Composite shed 0.05%.
European equity benchmarks are hovering around breakeven at midday. Among stocks in focus is aircraft engine producer Safran, down 1.6% in Paris on news that Boeing cut 737 MAX production. Meanwhile, U.K. Prime Minister Theresa May is expected to hold talks with European Union (EU) and Labour party leaders ahead of Friday's looming Brexit deadline. At last check, the German DAX is off 0.2%, London's FTSE 100 has edged up 0.06%, and the French CAC 40 is 0.07% higher.