Dow Futures Rally as Blue-Chip Earnings Pour In

The Nasdaq is pointed lower as investors eye NFLX's post-earnings dip

Deputy Editor
Jul 21, 2021 at 9:24 AM
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It's a mixed day for markets this morning. Dow Jones Industrial Average (DJI) futures are poised to expand on yesterday's rally, S&P 500 Index (SPX) futures are eyeing more modest gains, and futures on the Nasdaq-100 Index (NDX) have turned slightly lower. Several blue-chips, including Coca-Cola (KO) and Verizon Communications (VZ), posted impressive quarterly earnings reports, though Netflix (NFLX) was not so lucky. The FAANG name reported a disappointing subscriber forecast, pushing the stock lower premarket and keeping a lid on tech. Meanwhile, the 10-year Treasury yield is slightly higher, last seen at 1.23%. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White breaks down market breadth
  • The bank stock that's poised for a bounce. 
  • Plus, JNJ hikes forecast; CMG surges on revenue growth; and SAP sees sunny days ahead. 

futures chart july 21

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts traded on Tuesday, compared to 705,388 put contracts. The single-session equity put/call ratio fell to 0.44 and the 21-day moving average stayed at 0.49.
  2. Johnson & Johnson (NYSE:JNJ) stock is up 1% in electronic trading after the pharmaceutical giant posted second-quarter earnings and revenue that topped analysts' estimates. The company also raised its earnings outlook, noting strong drug and medical device sales. JNJ is up 7% in 2021. 
  3. Chipotle Mexican Grill, Inc. (NYSE:CMG) stock is up 4.7% ahead of the bell, surging on growth in revenue for its second-quarter, which beat analysts' estimates, though its earnings fell short of expectations. The company's comparable sales also topped forecasts, with a return to indoor dining. CMG is 35% year-over-year.  
  4. SAP SE (NYSE:SAP) stock is off 4.4% in pre-market trading, even after the tech company hiked its outlook for the second time in 2021, citing its success in aiding customers move IT operations to the cloud. SAP is up 9.3% year-to-date. 
  5. The economic calendar looks bare today, with no relevant data set to come out.

OV Futures Chart July 21

Strong Earnings Give European Markets a Boost 

Markets in Asia were a mixed bag today. China's Shanghai Composite led the winners with a 0.7% pop, while Japan's Nikkei followed behind with a 0.6% gain. Exports in Japan rose 48.6% year-over-year in June, which was higher than the expected 46.2%. Meanwhile, the South Korean Kospi fell 0.5%, and Hong Kong's Hang Seng lost 0.1%.

European markets are on the rise midday, with help from strong quarterly earnings reports, particularly from Britain-based names Next and Future. London's FTSE 100 is up 1.5% at last check, the French CAC 40 has risen 1.2%, and the German DAX is posting a 0.7% rise, despite German software giant SAP pointed lower after its quarterly report.

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