Dow Futures Dip as Retail Sales Post Surprise Decline

Stock futures are trading slightly below fair value

by Josh Selway

Published on Oct 16, 2019 at 9:19 AM

U.S. stocks look set to cool after a strong start to earnings season on Tuesday. While the quarterly reports are continuing to roll in -- including Netflix's (NFLX) post-close release -- investors are also considering a Wall Street Journal report questioning China's commitment to buy more U.S. agricultural products as part of a trade deal, along with a surprising drop in retail sales for September. As such, futures on the Dow Jones Industrial Average (DJI) are trading modestly below fair value.

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

US stock futures oct 16

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.17 million call contracts traded on Tuesday, compared to 716,697 put contracts. The single-session equity put/call ratio came in at 0.61, while the 21-day moving average was 0.68.
  2. One notable earnings reaction this morning is coming from Abbott Laboratories (NYSE:ABT), as the shares dip 3% in pre-market action due to a quarterly sales miss and a lowered profit outlook.  ABT stock closed last night at $81.98, and could find support today at its key 200-day trendline.
  3. Another stock falling before the open is Workday Inc (NASDAQ:WDAY), set to open down 6.6%. WDAY received price-target cuts to $180 and $212 from Stifel and RBC, respectively. Most analysts still have bullish ratings on the equity, which is up 42.5% year-over-year through last night's close at $180.96.
  4. SVB Leerink sees major upside ahead for autoimmune disease specialist Aurinia Pharmaceuticals Inc (NASDAQ:AUPH). The brokerage firm believes data set to be released later this year on a late-stage trial for voclosporin could impress investors, and the shares could potentially rise up to 250%. AUPH stock finished Tuesday at $4.67.
  5. For economic data today, business inventories, the housing market index, the Fed's Beige Book, and Treasury International Capital data are due. Chicago Fed President Charles Evans will speak. The earnings schedule features IBM (IBM), Alcoa (AA), Ally Financial (ALLY), Bank of America (BAC), Bank of New York Mellon (BK), CSX (CSX), NFLX, PNC (PNC), Steel Dynamics (STLD), and United Rentals (URI).

stock market news oct 16

Asian Shares Rise with U.S. Counterparts

Most Asian markets closed higher today, as investors cheered upbeat earnings from U.S. banks. Japan's Nikkei outpaced its regional peers, adding 1.2% as a cooling yen boosted exporters. Elsewhere, South Korea's Kospi gained 0.7% after the Bank of Korea cut its key interest rate for the second time this year, and Hong Kong's Hang Seng tacked on 0.6% as property stocks jumped on government plans to boost housing projects. China's Shanghai Composite, meanwhile, shed 0.4% as optimism over U.S.-China trade negotiations waned.

European stocks are holding near the flatline at midday, as traders hesitate to make any big moves ahead of tomorrow's European Union (EU) summit, where Brexit negotiations will be front and center. Corporate earnings are also in focus, with shares of Netherlands-based chipmaker ASML lower after earnings. At last check, London's FTSE 100 is off 0.1%, the French CAC 40 is down 0.09%, and the German DAX is flirting with a 0.3% lead.


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