Dow Futures Signal Lower Open

Facebook stock is pacing for a sharp pullback at the open

Jan 30, 2020 at 9:13 AM
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Dow Jones Industrial Average (DJI) futures are trading below fair value this morning despite a mostly strong round of corporate earnings, with blue chips Microsoft (MSFT) and Coca-Cola (KO) headlining the winners with their pre-market gains. On the bearish side, traders are monitoring a sharp post-earnings pullback in Facebook (FB) shares, while fellow tech giant Amazon.com (AMZN) prepares for its post-close report.

Quarterly updates are only a small piece of the puzzle this morning, however, as the growing death count from the coronavirus is likely contributing to most of this morning's headwinds. There's also economic data to consider, namely an advanced reading of fourth-quarter gross domestic product (GDP) that showed the U.S. economy growing 2.1% in the period, matching expectations.

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

US stock futures jan 30

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.61 million call contracts traded on Wednesday compared to 799,003 million put contracts. The single-session equity put/call ratio dipped to 0.50, and the 21-day moving average was 0.53.
  2. The shares of Tesla Inc (NASDAQ:TSLA) are set to extend the rally they've enjoyed in recent months, posting a pre-market gain of 10% following the electric automaker's quarterly results. The company posted an earnings beat on record deliveries, while delivering a strong guidance, as well. TSLA had already doubled in value over the past six months, and is now set up for more record highs.
  3. Carnival Corp (NYSE:CCL) is in focus on headlines that some passengers aboard one of its cruise ships are being tested for coronavirus. The company is expected to provide updates on the situation soon, but CCL stock -- which has already been struggling -- is down another 6% before the open.
  4. Bloomberg is reporting that Nike Inc (NYSE:NKE) is being probed by the Securities and Exchange Commission (SEC) about whether it made illicit payments to youth basketball players. NKE shares have been testing their 50-day moving average, which served as strong support back in October and November.
  5. Visa (V), Altria (MO), Amazon, Biogen (BIIB), Eli Lilly (LLY), Sprint (S), UPS (UPS), and U.S. Steel (X) will all throw their hats into the earnings ring

Buzz Chart Jan 30

Overseas Shares Hit Hard Again

There was a lot more selling in Asian equities overnight due to coronavirus headwinds. China's Shanghai Composite had the worst day, down 2.8%, while Hong Kong's Hang Seng slipped 2.6%. In Japan, both the Nikkei and South Korea's Kospi fell 1.7%. Meanwhile, the losses have spread to Europe, where the FTSE 100 was last seen down 1.5%. France's CAC 40 was down even more, shedding 1.6% so far, and Germany's DAX is down 1.3%.

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