Stock Futures Move Lower as Treasury Yields Soar

The Fed's two-day meeting kicks off tomorrow

Deputy Editor
Sep 19, 2022 at 9:10 AM
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Fresh off Wall Street's worst week since June, stock futures are once again pointing towards a sharply lower open. The 10-year Treasury yield hit its highest level in 11 years earlier this morning, as investors look ahead to the Federal Reserve's two-day meeting that starts tomorrow. At last check, Dow Jones Industrial Average (DJIA) futures are off by 254 points, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also swimming in red ink. 

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

  • Make sure to watch this Treasury bond ETF trendline. 
  • Why one analyst likes International Paper stock.
  • Plus, unpacking AutoZone's earnings; what the GTA IV leak means for Take-Two; and crypto-adjacent stocks continue to struggle.

Futures Chart September 192022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1. million call contracts traded on Friday, and 1,151,894 million put contracts. The single-session equity put/call ratio rose to 0.81, while the 21-day moving average stayed at 0.66.
  2. Shares of AutoZone Inc (NYSE:AZO) are up 3.9% premarket, after the auto parts retailer turned in fiscal fourth-quarter earnings and revenue that beat analysts' expectations. The company's same-store sales rose 6.2% year-over-year, or double Wall Street's forecasts, as its commercial business sees continued strength. In the last 12 months, AZO is up nearly 35%.
  3. Following what's been called one of the biggest leaks in video game history, Take-Two Interactive Software, Inc (NASDAQ:TTWO) shed 4.5% loss before the session's opening bell. According to Bloomberg, a hacker released gameplay from the company's Grand Theft Auto IV game, which was previously estimated to generate $3.5 billion in bookings at launch. Year-to-date, TTWO is down more than 30%.
  4. Coinbase Global Inc (NASDAQ:COIN) continues to struggle as cryptocurrencies trade at multi-month lows, denting sentiment for all securities in the crypto-sphere. At last check, COIN was sitting 4.6% lower, and sporting a 70.7% year-to-date deficit.
  5. The week kicks off with the NAHB home builders' index.

OV Buzz Sept 19

Interest Rate Decisions Dwell on Foreign Markets

Asian markets fell on Monday, as investors awaited interest rate decisions from the U.S. Federal Reserve and the Bank of Japan (BoJ) later this week, the latter of which is expected to keep rates low. Meanwhile, the People’s Bank of China (PBC) lowered the borrowing cost of its 14-day reverse repurchase agreements. Pacing the laggards was South Korea’s Kospi with a 1.1% loss, while Hong Kong’s Hang Seng and China’s Shanghai Composite shed 1% and 0.4%, respectively. Elsewhere, Japan’s Nikkei was closed for a holiday.

European markets are lower as well, ahead of an euro zone construction output reading and comments from European Central Bank’s (ECB) vice president Luis de Guindos. The incoming stateside interest rate decision also has investors on edge. At last check, France’s CAC 40 is down 1.2%, the German DAX is 0.7% lower, and London’s FTSE 100 is closed for the funeral of Queen Elizabeth II.

 

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