Anxieties over recent stimulus discussions could be keeping a lid on gains today
Futures on the Dow Jones Industrial Average (DJI) are pointing to modest gains this morning, while futures on the tech-rich Nasdaq-100 Index (NDX) are eyeing a sizable move above fair value. This comes after several major tech names -- including Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL), and Facebook (FB) -- reported blowout earnings results for their most recent quarters, putting their expected market cap at more than $5 trillion combined.
However, a lackluster earnings report from oil giant Chevron (CVX), gridlock over the next emergency stimulus plan, and lingering COVID-19 anxieties are keeping a lid on Wall Street's gains this morning.
Continue reading for more on today's market, including:
- This food processing stock couldn't capitalize on an earnings beat.
- Options bulls pile on chip stock post-earnings.
- Plus, Caterpillar and Chevron step into earnings confessional; and bull notes galore for Apple after a four-for-one stock split.
5 Things You Need to Know Today
- The Cboe Options Exchange
(CBOE) saw 1.4 million call contracts traded on Thursday, and 777,171 put
contracts. The single-session equity put/call ratio rose to 0.55, and the
21-day moving average stayed at 0.47.
- Caterpillar Inc. (NYSE:CAT) is inching higher this morning, last seen up 0.4% after posting second-quarter earnings and revenue that exceeded analysts' estimates. The blue-chip company did report a year-over-year sales drop sparked by lack of demand. Caterpillar stock is up 17.4% in the last three months.
- Oil giant Chevron Corporation (NYSE:CVX) reported second-quarter losses of $1.59 per share, which came in much wider than the 92 cent loss expected by analysts. Revenue also missed the mark, mostly due to the alarming drop in oil and gas prices amid COVID-19. The stock is down 3.3% ahead of the bell, set to add to its 28.4% haircut in 2020.
- In addition to a fiscal third-quarter earnings and revenue beat, Apple Inc. (NASDAQ:AAPL) also announced a for-for-one stock split. These means that investors will have a chance to purchase Apple stock for around $100, depending its perch at the end of August. The equity is up 7% in electronic trading, and has received 14 price-target hikes from analysts this morning, the highest coming from Wedbush to $475 from $450.
- The employment cost index, the Markit manufacturing purchasing managers index (PMI), data on personal spending, new home sales, and the University of Michigan's consumer sentiment index are lined up today, while Chevron (CVX) and Caterpillar (CAT) join the earnings party.
Economic Data Moves Asian Markets; European Stocks Struggle Despite Tech Boost
Stocks in Asia were mixed to close out the week, after news came out that the United States’ growth domestic product (GDP) shed 32.9% in the second quarter – the worst drop in history. As a result, Japan’s Nikkei fell 2.8%, leading losses among the region’s major markets. Meanwhile, South Korea’s Kospi and Hong Kong’s Hang Seng closed 0.8% and 0.5% lower, respectively. Elsewhere, China’s Shanghai Composite rose 0.7%, boosted by manufacturing data that exceeded expectations.
Across the pond, stocks are higher, after blowout earnings reports from the technology sector lifted investor sentiment. Nonetheless, many are still monitoring the region’s GDP, with both France and Germany reporting sharp drops. At last check, the German DAX was up 0.7%, France’s CAC 40 was up 0.2%, and London’s FTSE 100 was down 0.2%.