Stock Futures Inch Higher After GDP, Jobs Data

Earnings reports from Tesla (TSLA) and McDonald's (MCD) are in focus today too

Managing Editor
Jan 27, 2022 at 9:13 AM
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After yet another volatile session, stock futures are indicating more of the same today. Dow Jones Industrial Average (DJI) futures are pointed higher, paring steep overnight losses. Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are also above fair value this morning, as investors unpack the latest corporate reports. 

McDonald's (MCD) fourth-quarter earnings and revenue fell short of estimates, while Tesla (TSLA) logged a top-line beat but warned of supply chain disruptions. Elsewhere, gross domestic product (GDP) grew at a seasonally adjusted annualized rate of 6.9%, higher than analysts' estimates of 5.5%. Weekly jobless claims, meanwhile, fell to 260,000, past the 265,000 Wall Street estimates.

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

  • Schaeffer's Senior Market Strategist Matthew Timpane on common options trading mistakes.
  • See why put traders blasted this biotech stock.
  • Plus, jeans icon breaking out; and analysts weigh in on two tech stocks.   

OV Futures Chart Jan 27

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.5 million call contracts traded on Wednesday, and 858,796 put contracts, the most on record. The single-session equity put/call ratio fell to 0.56, and the 21-day moving average remained at 0.51.
  2. Levi Strauss & Co. (NYSE:LEVI) stock is up 8.2% in electronic trading, after the apparel retailer reported a beat-and-raise in its latest corporate report. Heading into today, LEVI was down 18.8% year-to-date. 
  3. Seagate Technology Holdings (NASDAQ:STX) stock is 9.2% higher ahead of the open, after the tech company reported a revenue beat for the fiscal second quarter. What has STX jumping though, is an upbeat guidance and increased long-term profit margin target, which has prompted seven analysts to hike their price targets this morning, including Stifel, from $120 to $125.
  4. The shares of Lam Research Corporation (NASDAQ:LRCX) are 5.2% lower before the bell, after the semiconductor name's second-quarter revenue and current-quarter guidance fell short of estimates. No fewer than six brokerages have trimmed their price targets already, the lowest coming from Deutsche Bank, to $650 from $720.
  5. Later today, investors can expect the pending home sales index, a report on the final sales of domestic product, and reports on durable goods orders and core capital equipment orders. 
buzz jan 27

Overseas Markets Still Unpacking Fed Decisions

Asian markets were lower on Thursday, as investors digested the U.S. Federal Reserve’s plan to hike its short-term borrowing rate by a quarter-percentage point by March. Pacing the laggards was South Korea’s Kospi with a 3.5% drop, after Samsung Electronics reported a slowdown in operating profits, noting supply chain challenges remain. Meanwhile, Hong Kong’s Hang Seng and China’s Shanghai Composite shed 2% and 1.8%, respectively, as tech stocks tumbled. Elsewhere, Japan’s Nikkei was 0.4% lower.

European markets are mixed, following the economic policy decision stateside. Investors are also digesting a batch of corporate earnings reports, with Deutsche Bank in particular standing out after it beat quarterly expectations. In other news, Germany’s GfK consumer sentiment index came in above analysts’ estimates. At last check, London’s FTSE 100 is up 0.7%, France’s CAC 40 is slightly above breakeven with a 0.02% gain, and the German DAX is 0.1% lower.

 

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