Rising bond yields are weighing on the Nasdaq
Stock futures are moving lower again, as investors deal with Fitch's long-term U.S. downgrade. Futures on the Nasdaq-100 Index (NDX) bear the brunt of the burden, as 10- and 30-year treasury yields continue to climb. Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) futures are inching lower as well.
In other news, U.S. productivity came in well above economists' estimates, with nonfarm payrolls rising 3.7% for the April-through-June period, while labor costs also eased. Further, weekly jobless claims rose, but were in-line with analyst forecasts.
Continue reading for more on today's market, including:
- Top 2023 stock pick boasts tantalizing entry point.
- How options traders are playing this chip stock's pullback.
- Plus, 2 earnings reports to unpack, and ROKU's bear note.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts and over 1 million put contacts exchanged on Wednesday. The single-session equity put/call ratio rose to 0.62 and the 21-day moving average stayed at 0.65.
- Etsy Inc (NASDAQ:ETSY) stock is nearly 9% lower in electronic trading, after the online marketplaces operator issued a weaker-than-expected third-quarter guidance. The news offset second-quarter earnings and revenue wins, while multiple analysts weighed in with bear notes. Year-to-date, ETSY is already down almost 20%.
- Moderna Inc (NASDAQ:MRNA) is up 1.6% ahead of the open, even after reporting second-quarter losses and a drop in revenue. Instead, investors are focusing on the biotech concern's full-year outlook for its Covid-19 vaccine. Over the last 12 months, MRNA has shed 31.5%.
-
Roku Inc (NASDAQ:ROKU) sports
an impressive 124% year-to-date lead, but is 2.4% lower in premarketing trading following a bear note from Citi. The firm downgraded the streaming stock to "neutral" from "buy," saying the shares have limited upside.
- ISM services data and factory orders are tapped for release later today.
Bank of England Hikes Interest Rates
For the most part, Asian markets extended yesterday’s losses, though China’s Shanghai Composite managed a 0.6% win after the country’s service sector purchasing managers’ index (PMI) rose to 54.1 in June. Japan’s Nikkei led the losses with a 1.7% drop, while Hong Kong’s Hang Seng and the South Korean Kospi shed 0.5% and 0.4%, respectively. Also worth noting that Japanese video game giant Nintendo announced a strong quarter, following the release of the Super Mario Bros. movie and The Legend of Zelda: Tears of the Kingdom videogame.
European markets are firmly lower, after the Bank of England (BoE) lifted its main interest rate by 25 basis points to 5.25%. Plus, the euro zone’s S&P Global purchasing managers’ index (PMI) dropped to 48.6 in July from the previous month’s 49.9. The German DAX is down 0.9% midday, while London’s FTSE 100 and the French CAC 40 both fall 0.8%.