Dow Futures Eye Muted Gains Amid Earnings Deluge

The 10-year Treasury hit its highest level since 2008 earlier

Digital Content Manager
Oct 20, 2022 at 9:23 AM
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Stock futures are mixed this morning, as investors sift through the latest batch of big-wig earnings reports, featuring both Tesla (TSLA) and IBM (IBM). Dow Jones Industrial Average (DJI) futures are eyeing a muted jump, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures have slipped back below fair value after the 10-year Treasury yield hit 4.18% -- its highest level since 2008.

Investors are also weighing jobless data, with initial claims falling to 214,000 last week, which is below Wall Street's estimates of 230,000. Also on the radar is the Philadelphia Federal Reserve's manufacturing index, which came in at a worse-than-expected -8.7 reading for October, signaling contraction.

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

  • Why Yeti stock could be vulnerable to bear notes. 
  • Unpacking Generac stock's dismal price action.
  • Plus, AAL shares earnings beat; TSLA slashes delivery targets; and IBM hikes revenue outlook. 

Futures 1020

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.07 million call contracts and 796,101 put contracts traded on Thursday. The single-session equity put/call ratio rose to 0.74, while the 21-day moving average stayed at 0.68.
  2. American Airlines Group Inc (NASDAQ:AAL) has reversed course, last seen down 0.6% ahead of the bell, even after announcing a third-quarter earnings and revenue beat. The company said travel demand is still strong, despite recession fears. Year-to-date, AAL remains down 25.4%.
  3. Electric vehicle (EV) giant Tesla Inc (NASDAQ:TSLA) is in hot water, last seen down 6% in premarket trading, after its better-than-expected third-quarter earnings results came along a revenue miss. The company also slashed its full-year delivery target, attracting no less than six price-target cuts, including one from J.P. Morgan Securities to $150 from $153. TSLA has shed over 44% in 2022.
  4. The shares of IBM (NYSE: IBM) are up 4% before the open, enjoying tailwinds from a third-quarter earnings report that beat top- and bottom-line expectations. IBM also raised its full-year revenue outlook amid strength in its software, consulting, and infrastructure segments. Year-over-year, though, IBM is down 9.7%. 
  5. Out today is existing home sales data, and leading economic indicators.

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European Markets Dip on Inflation Data, U.K. PM Resignation

Stocks in Asia fell on Thursday, as economic fears continued to rock the boat. After briefly dipping to its lowest level since May 2009, Hong Kong’s Hang Seng pared some losses but still shed 1.4% after a Bloomberg report disclosed Chinese officials are discussing reducing the quarantine period for inbound travelers. The move weighed on airline equities in the area, though China’s Shanghai Composite managed to escape with a smaller 0.3% loss. Meanwhile, Japan’s Nikkei fell 0.9%, after the Japanese yen dipped past 150 against the U.S. dollar – tumbling to levels not seen since August 1990. South Korea’s Kospi shed 0.9% as well.

Inflation data out of Germany is weighing on European bourses today, as well as news that embattled U.K. Prime Minister Liz Truss is resigning in response to budgetary and economic backlash. According to September’s figures, Germany’s producer prices rose 45.8% year-over-year, beating out economists’ estimates and dragging the DAX 0.4% lower at last check. Meanwhile, London’s FTSE 100 and France’s CAC 40 are 0.02% and 0.2% higher, respectively.

 

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