Stock Futures Poised to Resume Trek Lower

The 10-year Treasury yield is also inching lower

Digital Content Manager
Jul 5, 2022 at 9:06 AM
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Markets are returning from the holiday weekend poised for more losses. Futures on the Dow Jones Industrial Average (DJIA) are set for a 343 point drop, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are looking at substantial premarket losses of their own.

Yesterday while U.S. markets were closed, U.S. Treasury Secretary Janet Yellen and Vice Premier of China Liu He convened for a virtual meeting regarding macroeconomic concerns. Over the holiday weekend, there was also a sharp drop in the 10-year Treasury yield, which was last seen inching lower at 2.8%. 

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

futures july 5

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw over 1.07 million call contracts and 820,892 put contracts traded on Friday. The single-session equity put/call ratio fell to 0.69, and the 21-day moving average stayed at 0.64.
  2. HP Inc (NYSE:HPQ) was just downgraded to "in line" from "outperform" by Evercore, which noted weaker demand for personal computers among customers. In response, the tech stock is down 2.5% ahead of the bell, set to to its 16.2% year-to-date deficit and open at its lowest level since late-November 2021. 
  3. The shares of Exxon Mobil Corp (NYSE:XOM) are inching higher ahead of the bell, last seen up 0.7% after the oil concern predicted that its second-quarter earnings could hit $18 billion, thanks to surges in oil and natural gas prices. The energy stock is coming off a record high of $105.57 from early June, and looks to have found support near the $84 level. 
  4. Tesla Inc (NASDAQ:TSLA) announced it delivered a lower-than-expected 254,695 vehicles in the second quarter. This marks a 17.9% quarter-on-quarter drop. The firm pointed to Covid-related restrictions in China for the slowdown. At last glance, Tesla stock is down 1.8%. The equity is still clinging to a year-over-year lead of 3.4%, but it's lost a whopping 43.2% in 2022 so far. 
  5. Today will bring factory orders and a core capital equipment orders revision.

July 5 OV Buzz Chart

Asian Markets Rise on Back of Economic Data

Asian markets settled mostly higher today amid a whirlwind of economic data. China’s Shanghai Composite was the only loser with a 0.04% loss, while Hong Kong’s Hang Seng and Japan’s Nikkei added 0.1% and 1%, respectively. The South Korean Kospi led the gains with a 1.8% win. Both China and Japan’s purchasing manager’s indexes (PMI) showed growth in June, with the latter expanding at its fastest pace since October 2013. Elsewhere, the consumer price index (CPI) in Korea rose 6% year-over-year in June – the fastest rate since November 1998, a time of economic crisis in Asia. Investors are speculating on a big rate hike from the Bank of Korea after the news.

Over in Europe, the major bourses are struggling midday as recession fears fester. The French CAC 40 and German DAX are both down 1.5%, while London’s FTSE 100 drops 1.4%. The euro services PMI for June came in at 53, just above the anticipated reading of 52.8 but down from the previous month’s 56.1. 

 

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