Dow futures are pointed toward a 440-point loss
Stock futures are spiraling this morning, with the Dow Jones Industrial Average (DJI) pointed nearly 440 points lower, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also firmly entrenched in red ink. Fears over a slowing comeback for the global economy are putting pressure on stocks, driven by Japan's state of emergency declaration in Tokyo, ahead of the summer Olympics. Reopening and retail stocks were feeling the most pressure, while the semiconductor sector was also weighed down by Wall Street's reopening anxieties.
The closely watched 10-year Treasury yield, meanwhile, ticked below 1.255% -- its lowest level since late February -- though the reason for the sharp and sudden drop is still ambiguous. An unexpected rise in U.S. weekly jobless claims isn't helping matters. Unemployment filings rose to 373,000 for the last week, topping the 350,000 Dow Jones estimate.
Continue reading for more on today's market, including:
- Why Goldman Sachs stock looks like a safe play in July.
- The small-cap bulls should look into ahead of earnings.
- Plus, CCL sinks on delta variant fears; bank stocks keep sliding; and why SCHW got a downgrade.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.8 million call contracts traded on Wednesday, compared to 961,889 put contracts. The single-session equity put/call ratio rose to 0.52 and the 21-day moving average stayed at 0.44.
- The rising of the Covid-19 delta variant overseas is casting a long shadow over the cruise sector today, especially after Tokyo declared a state of emergency. One name getting hit is Carnival Corp (NYSE:CCL). The equity is down 4.6% before the bell, set for its lowest open since February. Plus, the equity looks ready to breach its 180-day moving average for the first time since last November.
- Financial stocks, including Bank of America Corp (NYSE:BAC) are dropping today, as anxieties over the pace of the economic reopening resurface. BAC is off 2.7% ahead of the bell, pacing for its fourth-straight loss, should this pullback hold. Year-over-year, however, the stock still boasts a 72% lead.
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Coinbase Global Inc (NASDAQ:COIN) is down nearly 5% in electronic trading, as the cryptocurrency sector sells off. The equity's peer Bitcoin (BTC) is already seeing a nearly 6% drop, back below $33,000. COIN has struggled since going public back in April, but over the past few weeks has enjoyed newly formed support at the 20-day moving average.
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The economic calendar today will be focused around regularly scheduled initial and continuing jobless claims data, as well as the consumer credit report.
Regulation Concerns Put Pressure on Asian Markets
Markets in Asia slipped today, led by Hong Kong's Hang Seng, which dropped a steep 2.9%, as tech stocks plummeted due to renewed regulatory concerns. Elsewhere, Japan's Nikkei fell 0.9%, amid news that Tokyo was put under a state of emergency until Aug. 22, due to Covid infections. Rounding out the region, the South Korean Kospi lost 1%, and China's Shanghai Composite took an 0.8% haircut.
Stocks in Europe are struggling midday, taking a cue from their U.S. and Asian counterparts, as the Delta variant of Covid-19 weighs globally, and economic recovery hesitance permeates. At last check, London's FTSE 100 is down 2%, the French CAC 40 is off 2.5%, and the German DAX is posting a 2% deficit.