Stock Futures Signal Breather on Big Tech Bust

Mortgage applications saw a 1.7% weekly drop as demand cools

Digital Content Manager
Oct 26, 2022 at 9:25 AM
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Big Tech earnings from the likes of Alphabet (GOOGL) and Microsoft (MSFT) have been released and the results are leaving a lot to be desired. The former missed Wall Street's estimates, while the latter's current-quarter forecast came in below expectations. Stock futures are taking a major step back in response, with Dow Jones Industrial Index (DJI) futures last seen down over 100 points, as the benchmark looks to snap a win streak. Meanwhile, futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are pointed lower as well.

On the data front, mortgage applications saw a 1.7% weekly drop, per the Mortgage Bankers Association's Weekly Mortgage Applications Survey. Mortgage rates are seeing a seemingly unstoppable rise, climbing higher for 10-straight weeks, sending demand to its slowest pace since 1997. 

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

  • What should investors expect after Election Day.
  • Bears targeted this solar stock ahead of earnings. 
  • Plus, 2 stocks popping after earnings; more on Microsoft.

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.31 million call contracts and 817,212 put contracts traded on Tuesday. The single-session equity put/call ratio rose to 0.62, while the 21-day moving average stayed at 0.68.
  2. Harley-Davidson Inc (NYSE:HOG) shared a top- and bottom-line beat for its third-quarter, citing a pop in shipments and strong pricing. HOG is up 4% ahead of the bell, and it's looking to break back above its year-to-date breakeven level. 
  3. Hilton Hotels Corporation (NYSE:HLT) is inching higher before the open, last seen up 0.6% after posting a beat-and-raise for the third-quarter, thanks to strong demand for travel. The stock has added 8.3% this month, though it is down more than 16% for the year.
  4. Microsoft Corporation (NASDAQ:MSFT) also shared quarterly results that bested analysts' estimates, though it forecast a sharp decline of personal computers sales. Microsoft said this drop could impact sales of its Windows operating system, while inflationary pressures are also expected to impact the tech firm. MSFT was last seen down 6.9% in the premarket, as it extends its 25.5% year-to-date deficit. 
  5. Trade in goods data and new home sales are on tap today.

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European Investors Eye ECB Meeting, Markets Remain Mixed

In Asia, Hong Kong’s Hang Seng and China’s Shanghai Composite added 1% and 0.8%, respectively, rallying after stateside sentiment improved overnight on speculation that the U.S. Federal Reserve may turn less aggressive moving forward. In addition, Chinese onshore and offshore yuan bounced strongly against the greenback. Meanwhile, the Japanese Nikkei rose 0.7%, after the Bank of Japan (BoJ) offered to increase the amount of government bonds it plans to purchase to 150 billion yen – up from 100 billion. Rounding out the region, South Korea’s Kospi tacked on 0.7%.

With earnings season fully underway and the European Central Bank (ECB) meeting ahead, the region’s major bourses are trading in choppy fashion this afternoon. Today investors are digesting corporate reports from such names as Deutsche Bank, Barclays, and Mercedes Benz, while the ECB is expected to raise rates by 75 basis points at tomorrow’s meeting. At last glance, London’s FTSE 100 is 0.5% lower, while the CAC 40 in France sits 0.1% below breakeven, and the German DAX is 0.4% higher. 

 

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