Stock Futures Take a Breather Ahead of Big Week for Tech Earnings

Bitcoin, meanwhile, is on the rise

Deputy Editor
Jul 26, 2021 at 9:21 AM
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Stock futures are taking a breather this morning, with futures on the Dow Jones Industrial Average (DJI) pointed 104 points lower, and futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) both set to open squarely in the red. Investors are gearing up for a week packed with earnings reports from the tech sector, with Tesla (TSLA) prepared to push the first domino with its quarterly report after the close. The company also said late last week it will likely start reaccepting Bitcoin (BTC) as payment, causing the cryptocurrency to surge above the $3,900 level earlier on Monday, for the first time since mid-June.

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

  • The gaming underdog bulls might want to reconsider. 
  • A potential new law in China could make or break EDU. 
  • Plus, TME hit with new restrictions; AMZN considers bitcoin; and HAS celebrates a top- and bottom-line beat. 

futures chart july 26 2021

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.7 million call contracts traded on Friday, compared to over 1 million put contracts. The single-session equity put/call ratio rose to 0.61 and the 21-day moving average rose to 0.50.
  2. News that regulators have made it illegal for Tencent Music Entertainment Group (NYSE:TME) to own exclusive rights to online music is sinking U.S.-listed shares. TME is down 9.7% in pre-market trading. The stock is off nearly 44% year-to-date. 
  3. According to insider sources, Amazon.com, Inc. (NASDAQ:AMZN) is considering accepting bitcoin as payment on its website, as well as a new digital currency of its own creation. The company also recently listed an open position for a "cryptocurrency and blockchain lead." AMZN is up 0.5% ahead of the bell, and 12.3% in 2021. 
  4. The shares of toymaker Hasbro, Inc. (NASDAQ:HAS) are up 3.6% in electronic trading, following a second-quarter earnings and revenue beat. The firm noted a rebound in its film and television-linked businesses, as well as strength for its Wizards division, which includes "Dungeons & Dragons." Today's pop has HAS set to topple its year-to-date breakeven level. 
  5. Today's calendar will bring new home sales data for June. 

OV Buzz July 26

Government Restrictions Put Weight on Asian Stocks 

Markets in Asia mostly slipped today, with the exception of Japan's Nikkei, which closed with a 1% pop. Several Chinese companies are plummeting due to newfound fines and restrictions, which led Hong Kong's Hang Seng to wipe out its 2021 gains with a 4.1% drop. China's Shanghai Composite fell 2.3%, and the South Korean Kospi moved 0.9% lower.

Meanwhile, European markets are dropping off, as investors continue to monitor surging Covid-19 cases. The business climate index in Germany fell to 100.8 from June's 101.7, missing expectations of 102.1, showing a fall in business sentiment. The German DAX is down 0.3% at last check, while London's FTSE 100 and the French CAC 40 are both off 0.1% 

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