Stock Futures Dip, Dow Streak in Jeopardy

The earnings schedule is due to heat up

Jan 21, 2020 at 9:16 AM
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The Dow Jones Industrial Average (DJI) could be set to snap its five-day winning streak today, as U.S. stock futures trade below fair value. Traders are monitoring the effects of the coronavirus outbreak in China, which is putting pressure on travel stocks this morning. Investors are also taking in headlines from the World Economic Forum in Davos, Switzerland, where President Donald Trump said the United States is "in the midst of an economic boom," and that the country's relationship with China "has never been better." Outside of all this, there's plenty to look forward to on the earnings front, with blue chip IBM (IBM) and tech giant Netflix (NFLX) set to report after the close today.

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

  • The bear note that slammed Twitter stock.
  • M&A speculation put this education stock in focus.
  • Plus, weakness in travel stocks; Logitech pops post-earnings; and a healthcare stock to watch. 

US stock futures Jan 21

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.96 million call contracts traded on Friday compared to 942,903 put contracts. The single-session equity put/call ratio was 0.48, and the 21-day moving average was 0.51.
  2. Among some of the travel names set to get hit by the China virus outbreak are Carnival Corp (NYSE:CCL) and Las Vegas Sands Corp. (NYSE:LVS), along with their fellow cruise and hotel peers, and many airline stocks. CCL shares, for example, have shed 2.3% before the open, and LVS is pacing for a 6% decline at the open.
  3. Computer hardware specialist Logitech International (NASDAQ:LOGI) is in focus this morning following the company's earnings release. LOGI stock is eyeing a 2.3% gain when the market opens thanks to a top- and bottom-line beat, which should help the shares recover after they've pulled back slightly from the Jan. 13 annual high of $47.99, closing Friday at $46.57.
  4. One name to watch in healthcare today is Verrica Pharmaceuticals Inc (NASDAQ:VRCA). The dermatology expert over the weekend revealed promising trial data for its molluscum treatment VP-102, sending the stock up 0.7% in pre-market trading. This will have VRCA shares testing the $17 level, a site of recent resistance.
  5. Several big names will step into the earnings confessional, including IBM, Capital One Financial (COF), Haliburton (HAL), Netflix, TAL Education (TAL), TD Ameritrade (AMTD), and United Airlines (UAL).

New buzz chart jan 21

Asian Shares Pull Back

Markets in Asia took a hit today, after Moody's downgraded the city of Hong Kong to Aa3 from Aa2 amid escalating government protests. Hong Kong's Hang Seng gave back 2.8% for the day, its biggest drop in over two months. China's Shanghai Composite lost 1.4%, with tech giant Tencent a notable loser after reports that its Chairman sold shares worth $2 billion Hong Kong dollars. Japan's Nikkei gave back 0.9%, although the Bank of Japan (BoJ) kept its policy rates steady and delivered an encouraging fiscal outlook. Rounding out the region, South Korea's Kospi shed 1%.

Over in Europe, stocks are modestly lower ahead of World Economic Forum (WEF) getting underway in Davos, Switzerland. London's FTSE 100 is off by 0.9%, while the French CAC 40 is down 0.8% at last check. The German DAX is only 0.1% lower, with retailer Hugo Boss propping the index up after a big earnings win.


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