Stock Futures Dip as Recession Jitters Spike

Yesterday's retail sales data continues to weigh on sentiment

Deputy Editor
Dec 16, 2022 at 9:20 AM
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Stock futures are pointed lower once again, setting the major indexes up for a second-straight weekly loss. Fears of a recession in 2023 are swirling amid expectations of even more interest rate hikes. Adding coal the fire is retail sales data, which indicated higher inflation is denting consumer spending. At last check, futures on the Dow Jones Industrial Average (DJIA) are pointed 406 points lower, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures also sit firmly below fair market value. 

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

  • These 3 stocks moved sharply lower yesterday.
  • Goldman Sachs weighed in on the chip sector.
  • Plus, 2 of today's biggest earnings reports; and Meta Platforms stock upgraded.

Futures Chart December 162022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts and 991,152 put contracts exchanged on Thursday. The single-session equity put/call ratio fell to 0.73 and the 21-day moving average stayed at 0.74.
  2. Olive Garden parent Darden Restaurants, Inc. (NYSE:DRI) is off 0.3% before the opening bell, following a better-than-expected fiscal second-quarter report. The company beat profit, revenue, and same-restaurant sales estimates, and raised its 2023 earnings guidance. The equity sits just below breakeven on a year-to-date basis.
  3. Adobe Inc (NASDAQ:ADBE) sports a 5.3% premarket lead, and is looking to add to its 19.4% quarter-to-date gains, after its fourth-quarter earning results beat estimates, while revenue was in line with Wall Street's forecasts. What's more, Adobe released upbeat guidance for its fiscal first quarter.
  4. J.P. Morgan Securities upgraded Facebook and Instagram parent Meta Platforms Inc (NASDAQ) to "overweight" from "neutral," citing factors such as increased cost controls and Apple's (AAPL) privacy rule changes. META is up 2.5% in premarket trading, but is still 65.5% lower in 2022.
  5. The S&P U.S. manufacturing and services purchasing managers' indexes (PMI) are expected are due out today.

OV Buzz Chart Dec 16

European Markets Succumb to Global Interest Rate Hikes

Asian stocks sputtered as well, weighed down by the same issues plaguing U.S. equities. Japan’s Nikkei got it the worst, losing 1.9%. China’s Shanghai Composite finished marginally lower, as the country’s Central Economic Work Conference entered its second day. Hong Kong’s Hang Seng bucked the broad market trend with a 0.4% gain, while South Korea’s Kospi finished 0.04% lower.

Over in Europe, bourses are reacting negatively to the flurry of interest rate hikes across the globe. The European Central Bank (ECB) hiked its rate from 1.5% to 2%, while the Bank of England (BoE) opted for a 50 basis-point hike as well. At last check, London’s FTSE 100 is off by 1.4%, the French CAC 40 is 1.4% lower, and the German DAX is down 0.7%.


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