Stock Futures Rise as Earnings Season Heats Up

The S&P 500 and Nasdaq are eyeing five straight wins today

Assistant Editor
Oct 19, 2021 at 9:09 AM
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Futures on the Dow Jones Industrial Average (DJI) are up 132 points at last check, while S&P 500 (SPX) and Nasdaq-100 (NDX) futures are pointed higher as well, as investors unpack the latest slate of quarterly earnings. Bond yields are rising this morning, after data showed housing starts dropped a wider-than-expected 1.6% in September, while building permits declined a disappointing 7.7%. Elsewhere, Bitcoin (BTC) is holding above the $62,000 level, ahead of the debut of several exchange-traded funds (ETF's). 

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

  • Senior V.P. of Research Todd Salamone examines whether investor pessimism has reached its peak. 
  • Blue-chip pharma stock could soon extend its recent record highs. 
  • Plus, Procter & Gamble's earnings beat; WMT added to "conviction buy" list; and BABA's newest semiconductor venture. 

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.2 million call contracts traded on Monday, compared to 926,701 put contracts. The single-session equity put/call ratio fell to 0.42, and the 21-day moving average stayed at 0.50.
  2. Procter & Gamble Co (NYSE:PG) announced better-than-expected fiscal first-quarter earnings of $1.61 per share, as well as revenue that topped analyst estimates. However, the company forecast a hit to its full-year profits, as increasing commodity and freight costs weigh. PG is down 1.8% pre-market, and looking to drop back below its year-over-year breakeven level.
  3. Goldman Sachs added Walmart Inc (NYSE:WMT) to its "conviction buy" list, noting the retailer's increasing ability to generate earnings growth, and that a profit rebound could give the stock a big boost. Earlier this month, WMT bounced off familiar support at the $134 level after a steady decline on the charts. Before the bell, Walmart stock is up 2.3%. 
  4. China-based tech stock Alibaba Group Holding Limited (NYSE:BABA) is up 1.8% in electronic trading, after news that the company has developed its own custom computer chip. However, Atlantic Equities cut its price target to $250 from $290. 

  5. With housing starts already out, there isn't any other economic data of note today.

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Tech Boost Markets in Asia

Asian markets rose on Tuesday, propped up by region-wide strength in the tech sector. The Hong Kong Hang Seng saw the biggest gains, adding 1.5% as shares of Alibaba and Meituan jumped. Meanwhile, the Shanghai Composite, South Korean Kospi, and Japanese Nikkei all jumped 0.7%, while investors also monitored suppliers to Apple (AAPL), following yesterday’s product unveiling.

Over in Europe, markets are eyeing muted midday gains, with global economic optimism seemingly on the rise. Investors are keeping an eye on earnings, both regional and in the U.S. At last check, the French CAC 40 is 0.01% higher, the London FTSE 100 has tacked on 0.06%, and the German DAX is up 0.1%.

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