Dow Futures Sink on Caterpillar Earnings

FAANG stocks are under fire today amid the DOJ's broad antitrust review of big tech companies

by Lillian Currens

Published on Jul 24, 2019 at 9:22 AM

A disappointing day for blue chips in the earnings arena has Dow Jones Industrial Average (DJI) futures reversing course, signaling a roughly 100-point loss this morning. Trade-sensitive stocks Caterpillar (CAT) and Boeing (BA) are in the spotlight after CAT posted a second-quarter earnings and revenue miss, and the aerospace giant unveiled a huge quarterly loss of nearly $3 billion. Elsewhere, FAANG stocks Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL), and Facebook (FB) are under scrutiny after the U.S. Department of Justice (DOJ) announced it was launching a broad antitrust review of big tech companies.

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

  • Pay attention to a 25-year peak in the gold/silver ratio, says Senior Quantitative Analyst Rocky White.
  • Behind Coca-Cola's market-moving earnings report.
  • Why options traders swarmed 2 China stocks
  • Plus, iRobot slashes guidance on trade-war woes, and SNAP stock surges after earnings. 

Futures Chart July 24

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 990,645 call contracts traded on Tuesday, compared to 607,726 put contracts. The single-session equity put/call ratio landed at 0.61, while the 21-day moving average is 0.60.
  2. AT&T Inc (NYSE:T) stepped into the earnings confessional this morning, with second-quarter profits and revenue that arrived in line with analysts' expectations. The stock is slightly lower in pre-market trading, down 0.7% at $31.86.  
  3. Roomba creator iRobot Corporation (NASDAQ:IRBT) slashed its full-year 2019 guidance, saying that the U.S.-China trade war will likely constrain growth during the second half. The stock has plummeted 19.2% to $72.40 ahead of the bell. 
  4. Snap Inc (NYSE:SNAP) has surged 9% to $16.18 in electronic trading, after its second-quarter earnings came in ahead of analysts' estimates. The company unveiled higher-than-expected revenue, too. SNAP has garnered a UBS upgrade to "neutral" from "sell" and at least 13 price-target hikes this morning, but the equity's pre-market rally has yet to live up to the high volatility expectations priced in by options traders.
  5. Today's economic calendar brings new home sales and the weekly crude inventories update. Earnings from Facebook (FB), American Airlines (AAL), F5 Networks (FFIV), Ford Motor (F), Freeport-McMoRan (FCX), Hilton (HLT), PayPal (PYPL), Tesla (TSLA), UPS (UPS), and VF Corp (VFC) are expected.

us buzz stocks july 24

Shaky Europe Data Rattles Stocks in London, France

There was some buying in Asian equities overnight thanks to news the U.S. and China will be continuing trade talks next week. The Shanghai Composite had the strongest session, adding 0.8%, and Hong Kong’s Hang Seng finished up 0.2%. In Japan, the Nikkei rose 0.4% thanks to gains in heavyweights Softbank and Sony. However, South Korea’s Kospi fell 0.9% as LG Display sold off.

Stocks in Europe, meanwhile, are mixed in midday trading, as traders consider another round of poor economic data in the region. Most troubling was Germany’s flash manufacturing purchasing managers index (PMI) for July, which was again in contraction territory. Meanwhile, the IHS Markit composite PMI from France also disappointed. While Germany’s DAX is still managing a 0.3% gain, London's FTSE 100 is off 1%, and France’s CAC 40 is down 0.4%.

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