S&P Set to Pull Back From Record High

Earnings from Alphabet, Pfizer, and Merck are headlining the action

by Josh Selway

Published on Oct 29, 2019 at 9:18 AM
Updated on Jun 24, 2020 at 10:16 AM

With earnings dominating the headlines again, Dow Jones Industrial Average (DJI) futures are trading below fair value this morning. Futures on the S&P 500 Index (SPX) are also pointing to a lower open for stocks, as the broad-market index looks set to cool after yesterday's record high. Alphabet's (GOOGL) poorly received earnings update is one reason for the risk-off approach this morning, while traders also digest quarterly reports from Dow components Merck (MRK) and Pfizer (PFE).

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

US stock futures oct 29

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 869,445 call contracts traded on Monday, compared to 446,905 put contracts. The single-session equity put/call ratio fell to 0.51, while the 21-day moving average came in at 0.68.
  2. Elsewhere on the earnings front, Beyond Meat Inc (NASDAQ:BYND) is a major loser, set to open down roughly 20%. BYND shares had already been weak in recent months, falling from around $240 in late July to yesterday's close of $105.41, and comments in this morning's earnings call about growing competition in the fake meat space has more investors selling shares as the company's lock-up period expires.
  3. Another earnings loser is Shopify Inc (NYSE:SHOP), which could be bad news for options traders. The e-commerce company's third-quarter loss was unexpected -- sparked by increased spending -- and the stock's down almost 5% in pre-market trading.
  4. Boeing Co (NYSE:BA) will be in focus today, as the aircraft maker's CEO Dennis Muilenburg is set to testify before Congress about the company's 737 MAX crashes. Despite the rocky price action in 2019, the shares still sport a modest year-to-date gain.
  5. The S&P CoreLogic-Case Shiller home price index, consumer confidence, and pending home sales will also be released. Quarterly earnings will be coming from Advanced Micro Devices (AMD), Amgen (AMGN), Cheesecake Factory (CAKE), ConocoPhillips (COP), Corning (GLW), Electronic Arts (EA), Exact Sciences (EXAS), FireEye (FEYE), General Motors (GM), Incyte (INCY), Kellogg (K), Mastercard (MA), Mattel (MAT), and Yum China (YUMC).

stock market news oct 29

European Stocks Mixed with Earnings in Focus

It was a mostly lower finish in Asia today, as traders awaited updates on trade relations between Washington and Beijing, and looked ahead to this week's central bank events in the U.S. and Japan. China's Shanghai Composite suffered the worst losses, shedding 0.9%, as tech stocks declined. Elsewhere, Hong Kong's Hang Seng gave back 0.4% after leader Carrie Lam forecast negative economic growth for 2019, and South Korea's Kospi slipped 0.04%. Japan's Nikkei bucked the bearish trend, closing the session up 0.5%.

European markets are mixed at midday, with corporate earnings driving the price action. Among the notable losers is U.K. oil major BP, which reported a 40% drop in third-quarter profit, as well as Finnish paper manufacturer Stora Enso, which unveiled a sharp drop in quarterly profit and gave a weak current-quarter forecast on Brexit woes. At last check, London's FTSE 100 is down 0.7%, the German DAX is off 0.09%, and the French CAC 40 is clinging to a 0.03% lead.


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