Stock Futures Struggle Despite Upbeat Retail Sales

Futures gave back gains earlier this morning

Assistant Editor
Feb 17, 2021 at 9:25 AM
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Futures on the Dow Jones Industrial Average (DJI)S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are modestly lower this morning. Echoing yesterday's volatile trading session, futures were initially marginally higher earlier in the morning, but pivoted lower as the opening bell neared. Economic data is at the forefront so far today; retail sales data showed a 5.3% surge in January that blew past the 1.2% estimates. The producer price index (PPI) jumped as well, adding 1.3% for its largest increase since the index began. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White analyzes the VIX's recent historical move
  • Twilio stock slips from highs ahead of earnings. 
  • Plus, Shopify brushes off an earnings beat, analysts chime in on SEDG, and TPCO's million-dollar buyout. 

Futures0217

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.4 million call contracts traded on Tuesday, and 983,048 put contracts. The single-session equity put/call ratio fell to 0.42 and the 21-day moving average stayed at 0.41.
  2. Shopify Inc (NYSE:SHOP) is down 2.4% before the bell, despite the e-commerce platform reporting better-than-expected fourth-quarter earnings and revenue. However, the company sees slower revenue growth this year. Year-to-date, SHOP is already up 30.2% coming into today. 
  3. The shares of SolarEdge Technologies Inc (NYSE:SEDG) are up 3.2% in electronic trading, after the alternative energy company reported fourth-quarter earnings of 98 cents per share -- much higher than the 11 cents anticipated by analysts -- alongside better-than-expected revenue.  To follow, J.P. Morgan Securities cut its price target by $1 to $386, while Credit Suisse and Susquehanna hiked up theirs to $319 and $345, respectively.
  4. Tribune Publishing Company (NASDAQ:TPCO) is up 6.3% ahead of the open this morning, after news the hedge fund Alden Global will take the company private in a $630 million dollar deal, acquiring all outstanding shares for $17.25 in cash. Year-over-year, TPCO is up 276% coming into today's trading.
  5. Today will bring industrial production for January, and the Federal Open Market Committee (FOMC) minutes

Buzz Chart Feb 17

Stocks Mostly Lower in Asia, Europe

Asian markets were mixed on Wednesday, as investors digested a recent rise in bond yields to levels that have not been seen in one year. As a result, Japan’s Nikkei fell 0.6%, despite new data showing the country’s exports rose 6.4% for January. Meanwhile, South Korea’s Kospi dropped 0.9%, and Hong Kong’s Hang Seng added 1.1%. Elsewhere, China’s Shanghai Composite remained closed for the Lunar New Year holiday.

The rise in U.S. Treasury yields is also impacting European stocks, which are mostly lower. Additionally, Investors are closely monitoring corporate earnings reports, and Bitcoin’s surge to fresh records. In terms of data, the United Kingdom’s inflation rose 0.7% for January, as food and household goods prices moved higher. In response, the German DAX was last seen down 0.5%, while London’s FTSE 100 is down 0.2%, and France’s CAC 40 is slightly below fair value for a 0.09% loss.

 

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