Stock Futures Signal Extended Selling

Heated rhetoric from the U.S., Iran, and Iraq has investors feeling skittish

Jan 6, 2020 at 9:11 AM
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Dow Jones Industrial Average (DJI) futures are pointing to more losses for stocks, as tensions remain high between the U.S. and Iran. This would extend the selling from Friday that was sparked by the airstrikes in Baghdad that killed Irarian military commander Qassem Soleimani, with President Donald Trump yesterday threatening sanctions on Iraq should the country force out U.S. troops. As such, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are pacing to pullback, as well.

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

US stock futures jan 6

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.26 million call contracts traded on Friday, compared to 695,127 put contracts. The single-session equity put/call ratio rose to 0.55, while the 21-day moving average fell to 0.55.
  2. One of the worst stocks this morning is Cal-Maine Foods Inc (NASDAQ:CALM), down 11.5% before the open on the company's disappointing quarterly update. The egg producer reported a surprise loss for the fiscal second quarter, with CEO Adolphus B. Baker mentioning an oversupply of eggs that hurt the company's numbers. CALM stock could flirt with two-year lows should the price action hold.
  3. Alphabet Inc (NASDAQ:GOOGL) was the recipient of a bull note this morning, with Pivotal Research upping its rating to "buy" from "hold," and boosting its price target to $1,650 from $1,445. This comes as data shows GOOGL shares as a typically underperforming equity during the first quarter. The shares are slightly lower, however, heading into this morning's trading.
  4. SmileDirectClub Inc (NASDAQ:SDC) is up 8% this morning thanks to buzz around the new line of products it's launching at Walmart. Since its September initial public offering (IPO), SDC shares have struggled, holding near its all-time lows in recent days, last seen at $8.38.
  5. Data on the Markit manufacturing Purchasing Managers’ Index (PMI) will roll out today. There are no other earnings releases to note.

Buzz Chart Jan 6

Rising Global Tensions Weigh on European Markets

Markets in Asia declined across the board today, as geopolitical tensions in the Middle East kept investors on edge. Japan's Nikkei lost 1.9% as the yen weakened against the dollar, while South Korea's Kospi shed 1%. Hong Kong's Hang Seng finished down 0.8%, but China's Shanghai Composite paced the region just below breakeven.

Over in Europe, volatile U.S.-Iran relations also weighed on stocks. London's FTSE 100 is down 0.8% at last check, after the U.K.'s composite PMI for December was upwardly revised to 50. The French CAC 40 is down 0.9%, and the German DAX is off 1.3%, despite both French and German service PMI's beating forecasts.

 

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