Stocks Futures Fall as Global Tensions Burden Markets

Simmering tensions between the U.S. and China are in focus

Deputy Editor
Aug 2, 2022 at 9:23 AM
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Stock futures are slipping this morning, with Dow Jones Industrial Average (DJIA) and Nasdaq-100 (NDX) futures down triple digits, as disappointing revenue from Caterpillar (CAT) weighs. Futures on the S&P 500 Index (SPX) are quietly in the red as well, with tensions between the U.S. and China back into focus ahead of House Speaker Nancy Pelosi's controversial visit to Taiwan. Chinese officials have threatened to act should Pelosi go through with the visit, which is expected to happen today.

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

  • Diving into Marriot stock's key resistance levels.
  • How Nio stock scored its fourth-straight daily win
  • Plus, CAT's mixed quarterly results; why Pinterest stock is soaring; and unpacking this cruise stock's  $1 billion debt offering.

Futures August2

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts traded on Monday, and 967,493 put contracts. The single-session equity put/call ratio rose to 0.67, and the 21-day moving average stayed at 0.68.
  2. The shares of Caterpillar Inc (NYSE:CAT) are down 3.4% premarket, after the Dow member's mixed second-quarter results. Though the company posted better-than-expected earnings of $3.18 per share, revenue missed estimates, as supply chain issues and its departure from Russia weighed. CAT is down 5.8% year-to-date. 
  3. Pinterest Inc (NYSE:PINS) is soaring before the bell, up 18.7% despite a dismal second-quarter earnings report, after news that activist investor Elliott Management has become its largest shareholder. Susquehanna upgraded PINS to "positive" from "neutral," with a price-target hike to $35 from $22. No fewer than six other analysts raised their price targets as well, with two chiming in with price-target cuts. 
  4. Royal Caribbean Cruises Ltd (NYSE:RCL) is down 0.8% in electronic trading, paring steeper pre-market losses, after the company announced the pricing of an upsized $1 billion debt offering. It's also worth noting that the stock has landed on the short sell restricted (SSR) list. Year-to-date, RCL is down 53.5%.
  5. Today will bring job openings and quits.

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Geopolitical Tensions Weigh on Overseas Markets

Asian markets suffered sharp losses today ahead of Nancy Pelosi’s visit to Taiwan, which sparked geopolitical tensions. Foreign Ministry spokesperson Zhao Lijian said during a press conference the Beijing army would not “sit idly by,” and would “uphold China’s sovereignty and territorial integrity.” In response, the Hong Kong Hang Seng dropped 2.4%, the Shanghai Composite shed 2.3%, and the Nikkei in Japan took a 1.4% haircut. The South Korean Kospi also fell, dropping 0.5%, as investors eyed a 6.3% rise in consumer prices in the region. This number was in line expectations, but marked it’s the quickest growth rate in prices since November 1998.

In Europe markets are also struggling, as traders weigh growing global tensions and a slew of earnings reports from the likes of BP (BP) and Ferrari (RACE). Although U.K.-based BP posted upbeat second-quarter profits, the London FTSE 100 is barely gaining traction, last seen up 0.02%. Meanwhile, the French CAC 40 and German DAX are both 0.5% lower at last glance.

 

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