Stock Futures Sink as Big Tech, GDP Data Disappoint

Second-quarter GDP data just made a record-setting plunge

Digital Content Manager
Jul 30, 2020 at 9:21 AM
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Stock futures are sharply below fair value this morning, as Wall Street awaits earnings reports from tech giants Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOGL), and Facebook (FB). The sector is stalling out ahead of the event. Also on investors' radar is second-quarter gross domestic product (GDP) data that came in lower than analysts' estimates, but still broke records with a 32.9% plunge.

To make matters worse, weekly jobless claims rose for the second-straight week, this time by 1.4 million. While that figure came in below the 1.5 million estimate, it marks the 19th straight week unemployment claims topped one million. Ahead of the bell, Dow Jones Industrial Average (DJI) futures were over 200 points lower, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also entrenched in the red. 

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

Futures Chart July 30 2020

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.4 million call contracts traded on Wednesday, and 380,629 put contracts. The single-session equity put/call ratio rose to 0.51, and the 21-day moving average fell to 0.47.
  2. Dow-component Procter & Gamble Co (NYSE:PG) is up 1.6% ahead of the bell after posting fiscal fourth-quarter earnings and revenue that topped analysts' forecasts. The firm cited strength in cleaning product sales during the pandemic. PG has reclaimed its year-to-date breakeven level this week, and hit a record high of $129.24 yesterday.
  3. Dunkin Brands Group Inc (NASDAQ:DNKN) shared second quarter earnings that just barely came in above estimates, while its reported revenue exceeded expectations. However, the company's drop in comparable store sales is bringing the stock down to a 2% drop in electronic trading. DNKN is down 5% in 2020, despite a 10.8% three-month rally.
  4. Meanwhile, Paypal Holdings Inc (NASDAQ:PYPL) is up 2.9% before the open, following an earnings and revenue beat driven by surging e-commerce sales. PayPal stock hit a record high of $185.44 yesterday as well, and is up 70.6% going into today.
  5. Today, investors will keep an eye on earnings from AstraZeneca, Ford (F), MasterCard (MA), and United Parcel Service (UPS) are on tap. 

OV Buzz Chart July 30

Asian Markets Mixed While Stocks in Europe Step Back 

Stocks in Asia were mixed today, after the U.S. Federal Reserve decided to leave interest rates unchanged. Meanwhile in Japan, June sales declined 1.2% over the past year, which is better than the median market forecast for a drop of 6.5%. Nonetheless, Japan’s Nikkei closed 1.2% lower. Elsewhere, Hong Kong’s Hang Seng and China’s Shanghai Composite dropped 0.7% and 0.2%, respectively, while South Korea’s Kospi closed 0.2% higher.

Across the pond, stocks are retreating, as dismal earnings reports continue to pour in. For instance, German auto maker Volkswagen reported a first-half operating loss of 800 million euros, as well as a 27% drop in vehicle deliveries, while French competitor Renault reported a 7.3 billion euro net loss for the first half of 2020. At last check, the German DAX was down 2.4%, London’s FTSE 100 was down 1.6%, and France’s CAC 40 was down 1.2%.

 

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