The Dow is looking to shed triple digits
Unclear midterm election results are weighing on stock futures this morning. Futures on the Dow Jones Industrial Average (DJI) are off by triple digits, following disappointing quarterly results from Walt Disney (DIS). S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are pointed firmly lower as well, as traders wait to find out which party now has control of the U.S. Congress. They are also weighing the risk of a recession, following the Federal Reserve's last interest rate hike.
Continue reading for more on today's market, including:
- Senior Quantitative Analyst Rocky White unveils the top sectors for short plays.
- This footwear stock has solid post-earning support.
- Plus, Meta announces layoffs; more on Walt Disney's earnings miss; and why AMC is tumbling.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts and 1.6 million put contracts traded on Tuesday. The single-session equity put/call ratio rose to 1.30, while the 21-day moving average rose to 0.69.
- The shares of Meta Platforms Inc (NASDAQ:META) are up 5% ahead of the open, after CEO Mark Zuckerberg said in a letter to employees the social media giant will be cutting over 11,000 jobs, or roughly 13% of its workers. Year-to-date, META has shed a whopping 71.3%.
- Walt Disney Co (NYSE:DIS) is down 7.8% in the premarket, following its fourth-quarter earnings and revenue miss. The company attributed the dismal results to surging costs for its Disney+ streaming service, and revealed plans to lower both marketing and content expenses. DIS is down 43.5% year-over-year.
- Despite reporting a third-quarter top- and bottom-line win, AMC Entertainment Holdings Inc (NYSE:AMC) is down 3.7% before the bell. Weighing on the equity instead are comments from CEO Adam Aron, who said box office results softened toward the end of the quarter. Over the last 12 months, AMC is off by 79.7%.
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A revision to wholesale inventories is on tap today.
Asian Markets Slip Amid Dismal Chinese PPI Data
Asian markets were mostly lower on Wednesday, with the exception of the South Korean Kospi, which closed with a 1.1% pop. Hong Kong’s Hang Seng fell 1.2% as tech stocks like Tencent Entertainment slipped, while China’s Shanghai Composite dropped 0.5%, and Japan’s Nikkei lost 0.6%. Meanwhile, China’s producer price index (PPI) fell by 1.3% year-over-year in October, its first decline since December 2020. Chinese property stocks are big winners of today, after the People’s Bank of China announced it was increasing its credit program.
Bourses in Europe are lower midday, as investors await U.S. midterm election results and unpack earnings from the likes of Adidas and Commerzbank. London’s FTSE 100 and the French CAC 40 are both down 0.2% at last glance, while the German DAX is off 0.4%, the latter unaffected by Adidas trimming its full-year guidance.