Stock Futures Succumb to Inflation Surge

The consumer price index topped expectations and rose at its fastest rate in 30 years

Digital Content Manager
Nov 10, 2021 at 9:13 AM
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Stock futures are sliding today, as inflation pressures rear their ugly head. Dow Jones Industrial Average (DJI) futures are indicating a sharp move lower, while futures on the S&P 500 (SPX) and Nasdaq-100 (NDX) are swimming in red ink as well. October's consumer price index rose 6.2% year-over-year, surpassing the 5.9% estimates from Wall Street, and clocking its fastest pace in over 30 years.

In response, the 10-year Treasury yield rose to 1.48% earlier. Jobless claims are also out a day early because of the Veteran's Day holiday tomorrow, with last week's unemployment filings reaching a new Covid-era low of 267,000, which matched expectations.

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

  • Schaeffer's Senior Quantitative Analyst Rocky White dives into the SPX's streak of record closes.
  • This energy stock has headwinds emerging.
  • Plus, Coinbase's revenue miss; DoorDash's latest acquisition; and why Poshmark is sinking. 

Futures 1110

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.1 million call contracts traded on Tuesday, compared to 971,926 put contracts. The single-session equity put/call ratio fell to 0.44, and the 21-day moving average stayed at 0.47.
  2. Cryptocurrency stock Coinbase Global Inc is down 9.9% ahead of the open. The plunge comes after the trading platform posted third-quarter revenue of $1.31 billion -- much worse than the $1.57 billion analysts anticipated. Plus, monthly transacting users fell from last quarter. Quarter-to-date, Coinbase stock is up 57.1%.
  3. The shares of DoorDash Inc (NYSE:DASH) are up 16.6% in electronic trading, after the company said it bought international food delivery name Wolt for $8.1 billion. The news comes on the heels of its third-quarter revenue beat, which is helping the stock brush off worse-than-expected quarterly losses. Year-to-date, DASH is up 34.5%.
  4. Poshmark Inc (NASDAQ: POSH) is sinking before the bell, last seen down 32.7%, after the online consignment store reported a third-quarter earnings and revenue miss. In addition, the company's revenue forecast came in below Wall Street's estimates for the holiday quarter. In the last six months, POSH has shed 66%.
  5. Wholesale inventories and a federal budget update are expected. 

OV Buzz Chart Oct 10

Asian Markets Drop on Chinese Inflation Data

Asian markets closed Wednesday’s session lower, following the release of Chinese inflation data for October. The inflation figures were in-line with estimates, while the consumer price index rose 1.5% year-over-year, verses an expected 1.4% pop. Producer prices, meanwhile, surged 13.5% from last year, which was well above forecasts. Hong-Kong listed real estate firm Fantasia Holdings plunged nearly 36.6% after the company failed to repay a $206 million bond, while other real estate shares in the country moved higher. In response, the Hong Kong’s Hang Seng added 0.7%, and the Shanghai Composite in China shed 0.4%. Rounding out the region, South Korea’s Kospi and Japan’s Nikkei fell 1.1% and 0.6%, respectively.

Stocks in Europe are mixed this afternoon, as investors in the region busied themselves with a deluge of corporate earnings ahead of the release of the consumer price index in the U.S. At last check, the London FTSE 100 is 0.5% higher, while France’s CAC 40 is off 0.3%, and Germany’s DAX is 0.09% lower.

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