Stock Futures Inch Lower After Yesterday's Slide

Investors are anxiously awaiting Friday's Fed comments

Deputy Editor
Aug 23, 2022 at 9:17 AM
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Stock futures are struggling for direction before the bell, but were last seen trading slightly below breakeven, following the major benchmarks' worst day since June. Friday's Jackson Hole symposium will be on investors' minds all week, as earnings reports continue to roll in. Meanwhile, "meme stock" AMC Entertainment (AMC) released its preferred share class, known as "APE" units, which began trading yesterday. 

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

  • Peabody Energy stock saw a bullish options surge
  • Put traders targeted Dick's Sporting Goods before earnings.  
  • Plus, ZM slides on lowered forecast; expansion plans boost PDD; and SJM jumps on quarterly win.  

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.42 million call contracts traded on Monday, and 924,263 put contracts. The single-session equity put/call ratio fell to 0.65, and the 21-day moving average stayed at 0.67.
  2. Zoom Video Communications Inc (NASDAQ:ZM) is down 12% premarket. The company cut its full-year forecast after its quarterly revenue growth hit a record low, with second-quarter revenue missing expectations, despite its earnings of $1.05 per share beating estimates. Plus, BTIG downgraded the stock to "neutral" from "buy," while no fewer than eight other analysts chimed in with price-target cuts. Year-to-date, the equity is down 47%.
  3. The shares of Pinduoduo Inc (NASDAQ:PDD) are up 2% before the bell, after Reuters reported the China-based tech name plans to launch an international e-commerce platform next month. On the charts, PDD has found a floor at the $45 level, though pressure at the 180-day moving average lingers above. Year-to-date, the equity is down 17.8%. 
  4. J.M. Smucker Company (NYSE:SJM) is up 1.8% in electronic trading, after the company's fiscal first-quarter results beat, and raised full-year forecast. Year-over-year, SJM is up 4.9%.
  5. Today will bring new home sales data, as well as the S&P manufacturing and services purchasing managers' index (PMI). 

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Economic Data Pours In Overseas

Asian markets saw another daily drop on Tuesday, as investors digested Singapore’s consumer price index (CPI), which rose to 7% year-over-year – marking a 14-year high. The Monetary Authority of Singapore and Ministry Trade and Industry, which released the data, said inflation will likely remain high “for the next few months.” In response, the Hong Kong Hang Seng dropped 0.8%, the Shanghai Composite in China shed 0.05%, and the South Korean Kospi lost 1.1%. The Nikkei in Japan was hit the hardest, losing 1.2% for the day, even as travel stocks rose on news that the government is considering ending the required pre-arrival Covid-19 tests for travelers who are vaccinated.

In Europe, stocks are quietly lower, after the European Union’s benchmark gas prices rose 13% overnight after damage to a key pipeline disrupted supply. This also comes as Russia said it would put a three-day pause on gas supplies at the end of the month for unscheduled maintenance on its main pipeline. Meanwhile, the euro hit a two-decade low, falling back below parity with the U.S. dollar. Also dinging markets today is another contraction from the August flash purchasing managers’ index (PMI) out of the euro zone, which marked its second-straight drop. As a result, the London FTSE 100 is down 0.7%, the French CAC 40 has shed 0.3%, and the German DAX has dropped 0.08%.

 

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