Dow Futures Eye Triple-Digit Drop With Earnings Season Underway

PepsiCo helped kick off earnings season

Deputy Editor
Jul 12, 2022 at 9:08 AM
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Stock futures fell on Tuesday, as investors dumped riskier assets while earnings season got underway. Dow Jones Industrial Average (DJIA) futures have shed roughly 186 points this morning, and the 10-year Treasury yield was last seen lower at 2.92%, as investors flocked to safe havens like the U.S. dollar and Treasurys in the face of stagnant global economic growth. Meanwhile, futures on the Nasdaq-100 Index (NDX) are relatively flat, and S&P 500 Index (SPX) futures sit firmly in the red, while PepsiCo (PEP) helped to kick off what could be a rocky earnings turnout for many big names.

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

  • Schaeffer's Senior Market Strategist Matthew Timpane lays out 2 possible market outcomes to follow inflation data.
  • Bull signal has never failed this oil and gas stock.
  • Plus, 2 notable earnings reports; and Gap's C-suite shakeup.

Futures Chart July 12

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 863,092 million call contracts and 551,437 put contracts traded on Monday. The single-session equity put/call ratio rose to 0.64, and the 21-day moving average stayed at 0.65.
  2. PepsiCo, Inc. (NASDAQ:PEP) helped to kick off earnings season this morning, reporting second-quarter earnings and revenue that topped Wall Street's estimates. In addition, the beverage and snack giant hiked its full-year forecast, as consumer demand remains strong despite increasing prices. PEP was last seen 0.6% higher ahead of the opening bell, and sported a 1.9% year-to-date deficit coming into today.
  3. PriceSmart, Inc. (NASDAQ:PSMT), meanwhile, stepped into the earnings confessional after yesterday's close. The discount retailer reported earnings that missed analysts predictions for the fiscal third quarter, though revenue edged out forecasts. In response, PMST was last seen down 4.2% in electronic trading, adding to its 21.1% year-over-year deficit.
  4. CEO Sonia Syngal stepped down from her position after two years with Gap Inc. (NYSE:GPS). Executive chairman and former Walmart executive Bob Martin will replace Syngal on an interim basis. The shakeup has GPS down 6.2% before Wall Street's open, while the clothing retailer looks to add to its 72.9% year-over-year losses.
  5. Today brings the National Federation of Independent Business' (NFIB) small-business index.

OV Buzz Chart July 12

Overseas Markets Tumble as Global Economic Concerns Weigh

Markets in Asia fell lower today as investors become increasingly sensitive to economic concerns, while rising Covid-19 cases sparks potential lockdowns. Led by sharp deficits from tech names SoftBank and Fanuc, Japan’s Nikkei led the losses with a 1.8% drop, while Hong Kong’s Hang Seng gave back 1.3%. Elsewhere, China’s Shanghai Composite and the South Korean Kospi both shed 1%.

European markets are taking a cue from their global counterparts and are firmly in the red midday. The German DAX is down 0.8% at last check, after the ZEW Indicator of economic sentiment turned sharply lower in July – losing 25.8 points to a reading of -53.8. Meanwhile, London’s FTSE 100 and the French CAC 40 are down 0.4% and 0.3%, respectively.

 

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