Stock Futures Slide on Gridlocked Stimulus Talks

The Nasdaq fell just a day after hitting a new intraday high

Deputy Editor
Aug 4, 2020 at 9:29 AM
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After logging sharp gains on the first trading day of August, futures on the Dow Jones Industrial Average (DJI) are reversing, last seen down 60 points below fair value. Though tech stocks helped prop up the major indexes on Monday, it seems that the ongoing negotiations surrounding the upcoming stimulus deal are keeping a lid on gains. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are sliding as well, with the former cooling off after yesterday's record highs. 

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

  • Why bulls should bet on this solar power stock while its options are on sale. 
  • Activision Blizzard stock is nearing all-time high territory ahead of earnings.
  • Plus, Chegg stock static despite Q2 beat; stay-at-home orders boost Sony stock; and TWTR is sliding on rumors of a $250 million fine. 

Futures Chart August 4

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw over 1.8 million call contracts traded on Monday, and 791,219 put contracts. The single-session equity put/call ratio fell to 0.44, and the 21-day moving average stayed at 0.47.
  2. Education technology company Chegg Inc (NYSE:CHGG) is down 0.9% ahead of the bell, despite reporting second-quarter earnings and revenue that beat Wall Street's forecasts, and lifting its full-year guidance. Chegg also added that it had more subscribers during the second quarter than the entirety of 2018, sparking no less than six price-target hikes from analysts.
  3. Sony Corp (NYSE:SNE) is up 2.1% in pre-market trading after the company reported better-than-expected fiscal first-quarter profits. Though profits fell 1.1% during its most recent quarter, the company saw a surge in demand for its gaming business amid coronavirus-related lockdowns.
  4. Social media behemoth Twitter Inc (NYSE:TWTR) is down 1.3% ahead of today's open after the company said it may have to pay a fine of up to $250 million due to accusations from the Federal Trade Commission (FTC). The social media company allegedly violated a 2011 consent order related to consumer data use and ad targeting, though this issue is still unresolved. 
  5. Today, be on the lookout for factory orders, as well as earnings from Activision Blizzard (ATVI), Enphase Energy (ENPH), Gluu Mobile (GLUU), Match Group (MTCH), Twilio (TWLO), Walt Disney (DIS). 


Asian Markets Rise on Manufacturing Data; European Stocks Fall Amid Weak Earnings

Asian markets saw gains during today’s session, after rising global manufacturing data helped give stocks a boost. Hong Kong’s Hang Seng jumped 2%, China’s Shanghai Composite added 0.1%, the Kospi in South Korea gained 1.3%. Meanwhile, Japan’s Nikkei ended with a 1.7% pop.

In Europe, stocks are mostly lower, after a round of weak earnings pared earlier momentum. However, London’s FTSE 100 is still scraping by with a 0.05% gain. Elsewhere, the French CAC 40 is down 0.09%, and the DAX in Germany has dipped 0.6%.


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