Oil prices have turned lower today
Dow Jones Industrial Average (DJI) futures are trading below fair value this morning, as uncertainty lingers following weekend airstrikes on crude production facilities in Saudi Arabia. Oil prices are down, too, following Monday's massive surge, with October-dated crude futures off 1.3% at $61.99 per barrel.
Traders are also turning their attention to the two-day Federal Open Market Committee (FOMC) policy meeting, which is set to kick off later today. The Fed is expected to cut rates by a quarter percentage point tomorrow, though the probability of such a move has eased over the last week.
Continue reading for more on today's market, including:
- Schaeffer's Senior V.P. of Research Todd Salamone explains why a rotation into bonds and gold could be on the horizon.
- Turtle Beach shorts are on edge as the stock breaks out.
- How options traders reacted to Carnival stock's slide.
- Plus, 3G Capital reduces Kraft Heinz exposure; the "high risk" stock Citi is buying; and Home Depot gets downgraded.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 968,232 call contracts traded on Monday, compared to 658,040 put contracts. The single-session equity put/call ratio rose to 0.68, while the 21-day moving average remained at 0.64.
- Kraft Heinz Co (NASDAQ:KHC) stock is down 2.6% in electronic trading, after the food company said its second-biggest shareholder, Brazil's 3G Capital Partners, unloaded 25.1 million shares at $28.44 apiece. KHC stock settled last night at $29.62, down 31.2% year-to-date.
- Citi Research initiated coverage on Match Group Inc (NASDAQ:MTCH) with a "buy" rating, labeling the stock "high risk," while waxing optimistic on the dating service firm's growth potential overseas. MTCH stock has consolidated some gains since its early August record high, but has found a foothold at its 80-day moving average, and closed Monday at $76.61.
- Home Depot Inc (NYSE:HD) was downgraded to "neutral" from "buy" at Guggenheim Securities, which also removed its $230 price target on the Dow stock. The brokerage firm cited HD's valuation, as well as 2020 margin risk from the home improvement retailer's strategic investment plans. Home Depot shares hit a record high of $235.49 last Thursday, Sept. 12, but have since pulled back to test support at their 10-day moving average. The equity is down 1.3% ahead of the bell, after closing last night at $230.99.
- Industrial production, the National Association of Home Builders (NAHB) housing market index, and Treasury International Capital data are due. Adobe (ADBE), Chewy (CHWY), Cracker Barrel (CBRL), and FedEx (FDX) will report earnings.
Energy Stocks Keep U.K. FTSE 100 Above Breakeven
Stocks in Asia ended mostly lower today amid spiking oil prices and global economic turmoil. Hong Kong's Hang Seng lost 1.2% after Moody's downgraded its outlook to "negative" to "stable," while China's Shanghai Composite fell 1.7% as new home prices for August slowed to near year lows. The Kospi in South Korea, meanwhile, remained nearly unmoved with a 0.01% gain. The Nikkei in Japan, meanwhile, closed up 0.1% after U.S. President Donald Trump outlined an initial trade agreement with Tokyo.
Geopolitical tensions, thanks to volatile oil prices and fears over potential military intervention, have stocks in Europe mostly lower at midday. The French CAC 40 is down almost 0.1%, while the German DAX has lost 0.4% -- brushing off a stronger-than-forecast ZEW investor sentiment reading. The London FTSE 100 is managing a marginal 0.1% win, with index names Shell and BP benefiting from crude supply concerns.