Apple just got hit with a downgrade
Dow futures are signaling a lower start this morning, with the index set to extend Friday's drop. A struggling tech sector is weighing on markets, with Apple (AAPL) downgraded to "sell" from "neutral" by Rosenblatt Securities. Traders could also exercise caution ahead of a mid-week speech from Fed Chair Jerome Powell, after last week's impressive jobs report lessened expectations for a rate cut at the Fed meeting later this month.
Continue reading for more on today's market, including:
- The video game stock facing major headwinds after an update.
- History says this software stock could take off.
- Plus, Verizon dips on an analyst note; the airline stock hit by a downgrade; and flyadeal says "no deal" to Boeing.
5 Things You Need to Know Today
-
The Chicago Board Options Exchange (CBOE) saw 836,671 call contracts traded on Friday, compared to 508,795 put contracts. The single-session equity put/call ratio landed at 0.61, while the 21-day moving average is 0.62.
- Verizon Communications Inc (NYSE:VZ) shares are lower in pre-market trading, after Citi downgraded the blue chip to "neutral" from "buy," citing "rising long-term industry risks." VZ stock is 0.8% lower ahead of the bell, but remains 3.7% higher year-to-date.
- American Airlines Group Inc (NASDAQ:AAL) stock is 1.9% lower in electronic trading, after Credit Suisse cut its rating to "underperform" from "neutral." The brokerage firm gave two catalysts for the downgrade: an ongoing mechanics labor dispute, and the 737 MAX grounding. AAL shares have dropped nearly 15% over the past year, with recent rally attempts stopping short at the 200-day moving average.
- Boeing Co (NYSE:BA) stock is lower in early market trading, after Saudi Arabian airline flyadeal decided it would not proceed with its planned $5.9 billion order of 737 MAX planes, choosing Airbus A320 jets instead. BA shares are down 1.5% ahead of the bell, but remain 10% higher for 2019.
- There are no notable earnings or economic reports due today.
Deutsche Bank Job Cuts Slam European Markets
There was a sharp pullback in Asian stocks, as the lowered expectations for a rate cut in the U.S. led to heavy selling. Tech shares in the region especially struggled ahead of the trading debut of a number of companies in China later this week. Starting there, the Shanghai Composite fell 2.6%, while Hong Kong’s Hang Seng slipped 1.5%. In Japan, the Nikkei closed 1% lower, and the Kospi settled down 2.2% in South Korea.
European benchmarks are also mostly on the wrong side of breakeven at midday. German banking giant Deutsche Bank AG is in the headlines again after announcing it's cutting 18,000 jobs in its latest restructuring efforts. Meanwhile, mining stocks are performing well, bouncing back from last week’s weakness. The FTSE 100 was last seen trading near breakeven in London, while the French CAC 40 and German DAX are facing respective losses of 0.2% and 0.3%.