Stock Futures Brace For Pullback Amid Earnings Season Peak

GameStop continues to capture the attention of retail traders

Assistant Editor
Jan 27, 2021 at 9:25 AM
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Stock futures are sharply lower this morning, as investors weigh a mixed bag of corporate reports. Blue-chip Boeing (BA) is headed lower after posting a steep loss, while tech icon Microsoft (MSFT) is set for a post-earnings pop. Apple (AAPL), Facebook (FB), and Tesla (TSLA) are slated to report after the closing bell. 

Futures on the Dow Jones Industrial Average (DJI) are off over 300 points at last check, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are noticeably lower as well. Also impacting the market is the ongoing battle between short sellers and retail traders, with heavily shorted names like GameStop (GME) and AMC Entertainment (AMC) being propelled higher thanks to online chatter. Later today, Federal Reserve Chairman Jerome Powell will speak on the U.S. economy after the Fed's interest rate decision

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

  • Schaeffer's Senior Quantitative Analyst Rocky White has something to say about market randomness with this "Super Bowl Indicator."
  • A bull signal shows TSLA has more room to run. 
  • Plus, more on Boeing's report; VFC's puzzling post-earnings move; and Southwest Airlines offers more voluntary leaves.

Futures Chart January 27

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.2 million call contracts traded on Tuesday, and 909,331 put contracts. The single-session equity put/call ratio rose to 0.40 and the 21-day moving average stayed at 0.42. 
  2. Boeing Co (NYSE:BA) stock is down 3.6% ahead of the open, after the aerospace name reported quarterly losses, including $8.3 billion in charges related to the 737 Max and delay of the 777-X program. However, revenue beat forecasts, and European Union (EU) regulators cleared the Max fore service in Europe. Year-over-year, BA is off 53.9%.
  3. The maker of Vans sneakers and North Face outerwear, VF Corp (NYSE:VFC) down 6.7% in electronic trading despite the retailer posting an earnings beat for its latest quarter. Revenue, meanwhile, was in line with estimates, and the company raised its forecast as many consumers continue to embrace leisurewear amid the pandemic. Over the last six months, VFC added 43.1%.
  4. The shares of Southwest Airlines Co (NYSE:LUV) are down 1.6% in pre-market trading, after announcing another round voluntary leave offers. As the travel sector continues to suffer from the pandemic, Southwest said it remains overstaffed in a number of areas. The equity has shed 18.6% year-over-year.
  5.  Durable and core capital goods orders are set to be released that day. In addition, the Federal Open Market Committee's (FOMC) two-day meeting will conclude with the latest decision on interest rates, as well as a press conference from Federal Reserve Chairman Jerome Powell.

OV Buzz Chart Jan 27

European Markets Struggle Thanks to New Covid-19 Strains

Asian markets settled on both sides of the aisle on Wednesday, as investors turned their attention toward the International Monetary Fund’s (IMF) most recent World Economic Outlook, which forecast 5.5% growth in 2021, up from October’s projections. China’s Shanghai Composite and the Nikkei in Japan both rose, adding 0.1% and 0.3% respectively. The former got a boost after the country’s National Bureau of Statistics reported a year-over-year rise in industrial profits. The Hong Kong Hang Seng fell 0.3%, however, while the South Korea Kospi dropped 0.6%.

Over in Europe, stocks are swimming in red ink as uncertainty over several new strains of the coronavirus weighed, despite vaccine optimism. At last check, the London FTSE 100 is off 1.3%, while the German DAX is 1.9% lower. Elsewhere, the French CAC 40  is down 1.6%, even as the country’s mall operators surged after French government minister Agnes Pannier-Runacher said a second lockdown in the region was not yet necessary.

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