Stock Futures Pointed Lower Amid Dismal Retail Sales Data

Retail sales fell a worse-than-expected 1.1% for July

Digital Content Manager
Aug 17, 2021 at 9:08 AM
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Futures on the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are pointed sharply lower this morning, fresh off their fifth-straight record close. Weighing on Wall Street today is a lackluster earnings report from blue-chip Home Depot (HD), that saw same-store sales whiff on expectations. Contributing to this pessimism is a 1.1% drop in retail sales for July, which came in well above expectations of a 0.3% dip, as shoppers held back amid Covid-19 delta variant fears. Futures on the Nasdaq-100 Index (NDX) are firmly in the red, too. 

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

  • Schaeffer's V.P. of Research Todd Salamone is keeping an eye on credit investors.
  • This pharma stock surged after a Covid-19 therapy update.
  • Plus, Walmart stock brushing off earnings beat; operational problems hit airline stock; Roblox misses analysts' estimates.

Futures 0817

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.8 million call contracts traded on Monday, compared to xx 974,621 put contracts. The single-session equity put/call ratio rose to 0.54 and the 21-day moving average stayed at 0.53.
  2. Walmart Inc (NYSE:WMT) is down 0.9% in electronic trading, despite the blue-chip retailer reporting better-than-expected second-quarter earnings and revenue, as comparable-store sales grew beyond analysts' estimates by 5.2%. Additionally, the company raised its full-year outlook as customers return to stores. Walmart stock surged to its highest level since December yesterday, and is up 13.7% year-over-year heading into today.
  3. The shares of Spirit Airlines Incorporated (NYSE: SAVE) are off 4.4% ahead of the bell, after the company said it lost $50 million due to operational problems. The airline had already been experienced staffing, technical, and weather issues, resulting in over 2,800 flights cancelled between late July and early August. Spirit stock has been trending lower on the charts since March, and has shed 20.3% over the last quarter.
  4. Video game name Roblox Corp (NYSE:RBLX) is down 6.4% before the open, after the company reported wider-than-expected second-quarter losses, in addition to a revenue miss. The dismal results were attributed to a reduction in social restrictions put in place during the pandemic. Quarter-to-date, RBLX has lost 11.6%.
  5. Industrial production data, business inventories, and the National Association of Home Builders (NAHB) home builders' index are due out today.

OV Buzz Chart Aug 17

European Markets Drop Amid Afghanistan, Covid-19 Concerns

Asian markets fell again today. In an attempt to stop unfair competition on the internet, China’s market regulator issued new draft rules, which cover everything from the ways companies use customer data to cracking down on fake product reviews. As a result, Hong Kong’s Hang Seng and China’s Shanghai Composite and lost 2% and 1.7%, respectively, as shares of Hong Kong-listed tech names like Tencent Music Entertainment (TME), Alibaba (BABA), and JD.com (JD) all fell over 4%. Rounding out the region, South Korea’s Kospi shed 0.9%, while Japan’s Nikkei finished 0.4% lower.

Stocks in Europe are mostly lower at midday, as investors weigh the escalation in Afghanistan against the backdrop of a worsening Covid-19 situation. Meanwhile, U.K. mining giant BHP Group struck an all-stock deal to sell its petroleum assets to Woodside Petroleum. At last check, London’s FTSE 100 is up 0.1%, the German DAX is off 0.2%, and France’s CAC 40 has shed 0.6%.

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