Dow Futures Point to Another Down Day

The selling in stocks is set to continue on Wall Street this morning, as the focus will remain on the health of the global economy. Futures on the Dow Jones Industrial Average (DJI) are trading below fair value following news the U.S. will impose tariffs on aircraft and agricultural products from the European Union (EU), beginning on Friday, Oct. 18, while there's also a number of economic reports to consider.

Aside from this morning's weekly jobless claims number, which at 219,000 was slightly above the 215,000 expected, traders will also be monitoring the release of the ISM non-manufacturing index shortly after the open for a check on the services sector. Against this backdrop, S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also pointing to a weak open.

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

• 2 stocks that could struggle this quarter.
• These pharma stocks are due for downgrades.
• Why put volume revved up on Ford.
• Plus, PepsiCo pops post-earnings; mining stock added to SP600; and why health insurers could be in focus.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw 794,943 call contracts traded on Wednesday, compared to 665,991 put contracts. The single-session equity put/call ratio jumped to 0.84, while the 21-day moving average remained at 0.65.
2. One of the biggest names on the earnings front this morning is PepsiCo, Inc. (NASDAQ:PEP), which is set to open up 2.1%, thanks to strong earnings and an upbeat forecast. The company noted particular strength in its e-commerce retail sales for the beat, along with the effectiveness in its new advertising push and demand for low-calorie drinks. PEP options traders, meanwhile, seem to have whiffed on this one.
3. Cleveland-Cliffs Inc (NYSE:CLF) has had a rough go of it on the charts in 2019, and earlier this week was hit by a price-target cut at B. Riley. The shares of the mining concern are trying to rebound before the open, though, up 4.3% on news the stock will be added to the S&P SmallCap 600 Index (SP600).
4. Brokerage firm Evercore ISI is calling traders' attention today to an expected speech on health insurance from President Donald Trump. Evercore said the speech, which is supposedly going to attack Medicare-for-all proposals from Democrats that have weighed on insurance stocks, could result in "friendlier headlines" for health insurance stocks. To be more specific, Trump is expected to promote Medicare Advantage, a program that was a boon for Humana Inc (NYSE:HUM) last quarter.
5. Today's calendar also includes factory orders and the Fed's balance sheet. Chicago Fed President Charles Evans will speak in the morning, while Cleveland Fed President Loretta Mester takes the mic at noon. Traders can expect quarterly reports from Ascena Retail Group (ASNA), Costco (COST), PepsiCo (PEP), and Constellation Brands (STZ).

European Markets Mixed at Midday

Asian stocks finished mixed in a low-volume session, with markets in China and South Korea closed for holiday. Japan's Nikkei slumped for a second straight day, finishing down 2% as robot maker Fanuc and Uniqlo parent Fast Retailing sold off sharply. Elsewhere, Hong Kong's Hang Seng managed a 0.3% gain, as news of a law to ban face masks at public events offset data that showed retail sales fell to a record low in August, amid volatile anti-government protests.

European markets are trading on both sides of breakeven at midday, as traders weigh the U.S.' newly announced tariffs on EU goods, and data from IHS Markit that showed the final composite purchasing managers index (PMI) for the eurozone hit a six-year low in September. At last check, the French CAC 40 is up 0.4%, while London's FTSE 100 is down 0.9% after U.K.'s services PMI unexpectedly contracted last month. The German DAX is shuttered for holiday.