Stock Futures Stall as Fed Blowback Lingers

President Trump is unhappy with the Fed's tepid stance on rate cuts

by Patrick Martin

Published on Aug 1, 2019 at 9:17 AM

Dow Jones Industrial Average (DJI) futures are trading just barely north of fair value this morning, after stocks sold off yesterday in the wake of what Fed Chair Jerome Powell described as a "midcycle adjustment" by the central bank -- a description of the quarter-point rate cut that wasn't quite as dovish as some market participants had hoped. President Donald Trump weighed in on Twitter last night, saying, "As usual, Powell let us down, but at least he is ending quantitative tightening, which shouldn’t have started in the first place - no inflation."

Earnings season continues to chug along, though, with blue-chip Verizon (VZ) up 1.4% after reporting results. Elsewhere, oil prices are pulling back, with September-dated crude futures down 1.8% at $57.55 per barrel.

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

  • 2 stocks skyrocketing amid manufacturing mergers. 
  • Why Citron is betting big on this biotech
  • What options traders are expecting from Viking Therapeutics tonight. 
  • Plus, YUM eyes record highs after earnings; Beyond Meat stock set to sink on discounted stock offering; and WYNN sinks on weak Macau revenue.

Stock Futures Chart Aug 1

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.09 million call contracts traded on Wednesday, compared to 682,247 put contracts. The single-session equity put/call ratio fell to 0.62, while the 21-day moving average remained at 0.60.
  2. Yum! Brands, Inc. (NYSE:YUM) is up 3.4% in electronic trading, after the restaurant name reported second-quarter earnings and revenue that exceeded analyst expectations. Same-store sales also beat estimates, thanks to the first quarterly sales growth at Pizza Hut in over a year. YUM stock is set to open at a new record high north of $116 per share, and has already added 22% in 2019.
  3. Beyond Meat Inc (NASDAQ:BYND) is down 13.9% ahead of the bell, after the plant-based burger maker priced its secondary stock offering at $160 per share, a nearly 19% discount to last night's closing perch of $196.51. BYND shares debuted at $25 in their May initial public offering (IPO), and peaked as high as $239.71 last Friday, July 26.
  4. The shares of  Wynn Resorts, Limited (NASDAQ:WYNN) are fractionally lower in electronic trading, after Macau casino revenues fell 3.5% year-over-year, below analysts' forecasts. WYNN is heading toward its worst week since early May, but support could emerge at its 126-day moving average.
  5. Weekly jobless claims, the IHS Markit manufacturing purchasing managers index (PMI), the Institute for Supply Management (ISM) manufacturing index, and construction spending will be in focus today. Earnings reports from Clorox (CLX), Fortinet (FTNT), General Motors (GM), GoPro (GPRO), Kellogg (K), Kraft Heinz (KHC), Qorvo (QRVO), Sprouts Farmers Market (SFM), U.S. Steel (X), and Universal Display (OLED) will be released.

stock market news aug 1

Fed Decision Sinks Asian Markets; Europe Digests Earnings

The major Asian stock indexes mostly finished in the red following the Fed buzz out of the U.S. The Shanghai Composite and Hang Seng each gave back 0.8%, and data showed another decrease in Chinese factory activity for July. In South Korea, the Kospi closed down 0.4%. Outpacing its peers was the Nikkei in Japan, which managed a modest 0.09% win. 

In Europe, stocks are mixed at midday, with earnings also driving the price action. French bank Societe Generale is one notable name on the rise thanks to strong results, and in the energy sector, Royal Dutch Shell is making a move to the downside after its earnings report. The French CAC 40 and German DAX were both last seen higher, up 0.5% and 0.2%, respectively, while the FTSE 100 underperforms in London, down 0.2% at last check. 


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