Stock Futures Signal Another Cautious Start

Earnings will drive today's trading once again

Oct 23, 2019 at 9:18 AM
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Dow Jones Industrial Average (DJI) futures are trading near fair value this morning, as Wall Street eyes another mixed open for stocks. Traders are focusing on earnings reactions from trade-sensitive Dow stocks Boeing (BA) and Caterpillar (CAT), with the former pacing for a higher start to the day, while the latter is lower ahead of the bell. There are plenty more names to watch on the earnings front, too, including post-close results from Microsoft (MSFT) and Tesla (TSLA), while the economic schedule is rather bare. As for now, futures on the S&P 500 Index (SPX) are indicating a flat open, as well.

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

  • Trading stocks, bonds, and gold around the Fed meeting, using data from Schaeffer's Senior Quantitative Analyst Rocky White.
  • Options traders hopped on Merck's pullback.
  • One stock that soared on a UPS partnership.
  • Plus, CAT hit by overseas weakness; healthcare stock set to jump; and Chipotle's digital sales surge again.

us stock futures oct 23

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.07 million call contracts traded on Tuesday, compared to 648,920 put contracts. The single-session equity put/call ratio fell to 0.61, while the 21-day moving average was 0.70.
  2. Looking closer at CAT's quarterly report, the company's third-quarter earnings missed estimates and it also lowered its full-year outlook, mainly due to decreased demand in Asia. Morgan Stanley warned about Caterpillar stock just last week, and the shares are set to open down 1.2%.
  3. Boston Scientific Corporation (NYSE:BSX) is up 7.5% before the open thanks to a top- and bottom-line beat, driven in part by 11.3% growth in the firm's cardiovascular segment. BSX stock is now on pace to take back the $40 level, but there may not be room for analyst upgrades, since 15 of the 16 brokerages in coverage already have "strong buy" ratings in place.
  4. Chipotle Mexican Grill, Inc. (NYSE:CMG) continues to benefit from robust digital sales growth, with online and app orders increasing by 88% in the third quarter. Same-store sales beat expectations as a result, as the company also benefited from new items like its carne asada, though CMG shares are still down 2.2% before the open.
  5. For the earnings schedule, Microsoft (MSFT), Anthem (ANTM), Blackstone (BX), Cleveland-Cliffs (CLF), eBay (EBAY), Edwards Lifesciences (EW), Eli Lilly (ELY), Equifax (EFX), F5 Networks (FFIV), Ford Motor (F), Freeport-McMoRan (FCX), Norfolk Southern (NSC), O'Reilly Auto Parts (ORLY), PayPal (PYPL), Spirit Airlines (SAVE), Tesla (TSLA), Winnebago (WGO), and Xilinx (XLNX) will report.

stock market news oct 23

Mixed Trading in Europe

It was a mostly lower finish in Asia today, as traders kept a cautious eye trained on Brexit headlines. Hong Kong's Hang Seng suffered the worst of its regional peers, shedding 0.8% after a report in the Financial Times indicated leader Carrie Lam could be ousted following months of violent pro-democracy protests. Elsewhere, China's Shanghai Composite and South Korea's Kospi each gave back 0.4%, the latter on a negative earnings reaction for Apple supplier LG Display, while Japan's Nikkei bucked the bearish bias to add 0.3%.

European markets are mixed at midday, after British lawmakers voted down a fast-track time frame for Prime Minister Boris Johnson's Brexit plan. The European Union (EU) will now decide whether to extend the Brexit deadline to Jan. 31, with Johnson threatening a general election if an extension is granted. At last check, London's FTSE 100 is up 0.2%, the German DAX is down 0.06%, and the French CAC 40 is off 0.6%.

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