Stock futures are all above fair market value
Futures on Wall Street regained some ground Wednesday from Moody's downgrade drama yesterday. At last check, Dow Jones Industrial Average (DJI), Nasdaq-100 Index (NDX), and S&P 500 Index (SPX) futures are all sitting just above fair market value. In what looks like a low-volume session ahead, Wall Street appears cautious and hesitant ahead of tomorrow's pivotal consumer price index (CPI) for July.
Continue reading for more on today's market, including:
- Schaeffer's Senior Quantitative Analyst Rocky White sees optimism in the SPX pullback.
- How options bears fattened their wallets with this biotech stock.
- Plus, fallout from the PENN-ESPN union; and unpacking Lyft's earnings report.

5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.3 million call and 901,375 put contracts exchanged on Tuesday. The single-session equity put/call ratio and the 21-day moving average both held at 0.65.
- PENN Entertainment Inc (NASDAQ:PENN) stock is 17% higher in electronic trading, following news of a new sports betting site. Specifically, Disney's ESPN and Penn Entertainment are inking a 10-year deal to create ESPN Bet, a $2 billion agreement that also saw Dave Portnoy buy back Barstool Sports from Penn. In addition, Penn's second-quarter earnings and revenue beat estimates, putting the stock on track to overcome its year-to-date deficit.
- Meanwhile, sports betting concern DraftKings Inc (NASDAQ:DKNG) stock is down 5.5% in premarket action following Penn's new deal. The rivalry between DraftKings and Penn Entertainment is going to heat up in the coming months, but for now DKNG holds the lead with a 178.4% lead in 2023.
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LYFT Inc (NASDAQ:LYFT) is 6.9% lower ahead of the open, even after the rideshare firm's second-quarter earnings and revenue came in above analysts' estimates. Investors are also brushing off a slew of post-earnings bull notes, as fears form around the company's focus on competitive pricing. Year-to-date, LYFT is up roughly 185%.
- There is no economic data of note on tap today.

Asian Bourses React to China CPI
China’s highly-anticipated consumer price index fell 0.3% year-over-year in July – its first negative reading in over two years – though consumer prices rose 0.2% for the month. Plus, the country’s producer price index (PPI) dropped 4.4% on an annual basis. Elsewhere, the unemployment rate in South Korea rose to 2.7% in July. China’s Shanghai Composite and Japan’s Nikkei both fell 0.5% for the day, while Hong Kong’s Hang Seng added 0.3%, and the South Korean Kospi jumped 1.2%.
European bourses are higher, amid news that the Italian government partially backtracked the surprise windfall tax on banks that was announced yesterday. London’s FTSE 100 is up 0.8% at last glance, while the French CAC 40 rises 1.1%, and the German DAX climbs 1%.