Stock Futures Signaling Another Slow Start

The deadline to avoid a potential default grows closer

Deputy Editor
May 23, 2023 at 9:09 AM
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Stock futures are modestly lower today, with futures on the Dow Jones Industrial Average (DJIA) off by 64 points at last check, as Wall Street watches the ever-present debt ceiling negotiations. Meanwhile, the Philadelphia Fed non-manufacturing survey rose to -16 in May from the previous month's -22.8. 

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

  • VIX hedges could create short-term headwinds, per Senior V.P. of Research Todd Salamone.
  • Quantum stock drawing attention after G7 summit. 
  • Plus, YELP jumps on investor buzz; LOW falls on forecast; and CVX upgraded. 

Futures MAy23

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts and 811,696 put contracts exchanged on Monday. The single-session equity put/call ratio fell to 0.54 and the 21-day moving average stayed at 0.72.
  2. Yelp Inc (NASDAQ:YELP) is up 9.8% premarket, after news that activist investor TCS Capital Management built more than 4% stake in the company. Looking to resume its recent climb, the equity is up 18.9% year-to-date heading into today.
  3. The shares of Lowe's Companies Inc (NYSE:LOW) are brushing off upbeat first-quarter results, down 1.4% before the bell, after the home improvement company lowered its annual sales and profit forecasts. Year-over-year, LOW is up 10%. 
  4. Chevron Corporation (NYSE:CVX) is up 1.4% in electronic trading, after an upgrade from HSBC to "buy" from "hold," and a price-target hike from Truist Securities to $194 from $190 on the company's PDC Energy deal. Chevron stock has been slipping on the charts, down 9.6% since the start of the month. 
  5. Today will bring new home sales as well as the S&P flash U.S. services purchasing managers' index (PMI) and manufacturing PMI. 


Debt Ceiling Talks Weigh Internationally

Stocks in Asia were mostly lower Tuesday, after stateside politicians failed to strike a deal on the debt ceiling. Despite expanding factory activity, Japan’s Nikkei lost 0.4%, snapping a seven-day win streak. Mainland stocks suffered more, with China’s Shanghai Composite shedding 1.5%, while Hong Kong’s Hang Seng fell 1.3% to a two-month low, after the area’s inflation reading for April came in at 2.1% -- just above economists’ estimates. Rounding out the region, rising consumer sentiment in South Korea helped the country’s Kospi add 0.4%.

The U.S. debt ceiling stalemate is also weighing on most European markets, with Germany’s DAX and France’s CAC 40 down 0.3% and 0.9%, respectively, at last glance. Meanwhile, London’s FTSE 100 boasts a 0.3% midday lead, after the International Monetary Fund (IMF) said the U.K. will avoid a recession this year, estimating gross domestic product (GDP) will grow 0.4% in 2023.



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