Stock Futures Set to Extend Last Week's Losses

Stock futures are pointed dramatically lower to start off the week, adding insult to last week's severe drop. Futures on the Dow Jones Industrial Average (DJI) are floating 500-points below fair value. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are staring at significant losses as well, largely due to Big Tech's struggle to rebound this month.

A number of other factors are making traders nervous this morning. The United Kingdom is reportedly considering another national lockdown to curb coronavirus cases, while back in the U.S., the passing of Supreme Court Justice Ruth Bader Ginsburg could slow down negotiations over a second stimulus bill, as legislators debate whether or not her seat should be filled before the election.

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

• Founder and CEO Bernie Schaeffer dives into the recent QQQ pullback.
• Why one analyst just became bullish on Ambarella stock.
• Plus, Nikola executive steps down; Oracle scores TikTok deal; Walmart launches new clothing line.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw over 1.8 million call contracts traded on Friday, and 1.1 million put contracts. The single-session equity put/call ratio rose to 0.63 and the 21-day moving average jumped to 0.50. 
2. Nikola Corporation (NASDAQ:NKLA) is down roughly 30% in pre-market trading, after founder Trevor Milton stepped down from his roles as executive chairman and board member. The decision came after short-selling firm Hindenburg Research accused the company of fraud. Year-over-year, the security remains up 235.2%.
3. Oracle Corporation (NYSE:ORCL) is up 4.4% before the bell, after President Donald Trump approved a deal that gives the computer technology company as well as Walmart (WMT) a minority stake in a U.S.-headquartered company called TikTok Global. Oracle will become the secure cloud provider for the Chinese video sharing app in the U.S., and host American users’ data. The security is up 12.2% this year.
4. The shares of Walmart Inc (NYSE:WMT) are up 1% in electronic trading, after the major retailer announced the launch of Free Assembly, a private label of men’s and women’s clothing that will be sold online and in 250 stores as soon as this week.  The announcement came as Walmart looks to boost its e-commerce business. Year-over-year, the security is up 15.5%.
5. The week will start off slow in terms of economic data with a monthly report from the Chicago national activity index. 

European Markets Drop Amid Bank Dealings, Coronavirus Concerns

Stocks in Asia were lower to begin the last full week of September, as Hong Kong-listed shares of Standard Chartered and HSBC fell dramatically. The latter fell to more than 25-year lows, after confidential documents revealed both companies allegedly moved suspicious funds over the last two decades. As a result, Hong Kong’s Hang Seng tumbled 2.1%. Elsewhere, South Korea’s Kospi fell 1%, while China’s Shanghai Composite slipped 0.6%, after the latter’s benchmark lending rates were kept unchanged. Lastly, markets in Japan were closed for a holiday.

Suspicious bank dealings also hobbled European markets today, while rising coronavirus infections are taking their toll on overall market sentiment as well. In response, London’s FTSE 100 was last seen down 3.4%, while Germany’s United Internet plunged substantially after lowering its outlook, giving the DAX a 3.3% loss at last check. Rounding out the region, France’s CAC 40 is off 3.2%.