Dow Futures Signal Big Drop; Retail Earnings in Focus
Dow Jones Industrial Average (DJIA) futures are down nearly triple digits this morning, pulling back after the index notched its seventh straight win yesterday. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also lower, despite all three indexes closing at record highs yesterday. Investors are starting to express concern over possible delays to Republican tax reform, though Senate GOP members are expected to unveil their plan before the end of the week. In the earnings confessional, Kohl's (KSS) stock is headed lower after weak earnings, while Walt Disney (DIS) will report tonight. Elsewhere, President Trump is continuing his tour of Asia, where he pressed China on North Korea and trade issues, while traders are digesting a bigger-than-expected rise in weekly jobless claims.
Continue reading for more on today's market, including:
The video game stock flashing "buy."The outperforming defense stock that could cool off.Why Nvidia stock's momentum couldfizzle after earnings tonight.Plus, Office Depot and Roku report earnings; and one biotech stock headed for record highs. 
5 Things You Need to Know TodayThe Chicago Board Options Exchange (CBOE) saw 892,461 call contracts traded on Wednesday, compared to 609,381 put contracts. The single-session equity put/call ratio rose to 0.68, and the 21-day moving average jumped to 0.65.Office Depot Inc (NASDAQ:ODP) stock is up 7% in electronic trading, after reporting third-quarter earnings that exceeded Wall Street's expectations. The upbeat report comes even after the office retailer warned that sales were hurt by Hurricanes Harvey, Irma, and Maria. ODP stock has shed 33% year-to-date, and touched a multi-year low on Oct. 30, following an analyst downgrade.Roku Inc (NASDAQ:ROKU) scored big on its first earnings report, delivering an earnings loss that was much smaller than expected. The streaming video provider also beat revenue forecasts and reported increased users and streaming hours. The encouraging report has ROKU stock up 35% before the bell.SAGE Therapeutics Inc (NASDAQ:SAGE) stock is up 46% in electronic trading, and could hit a record high, after the biotech reported positive results for its postpartum depression therapy trials. The news gives SAGE stock a much-needed boost, after the biotech's seizure drug failed trials in September, sending the stock tumbling.
The Fed's balance sheet is due after the close. Walt Disney (DIS), Coty (COTY), Dillard's (DDS), D. R. Horton (DHI), Hertz Global (HTZ), Nordstrom (JWN), Puma Biotechnology (PBYI), and Zoe's Kitchen (ZOES) will unveil their quarterly results.
Overseas Trading
Asian markets finished on both sides of breakeven, with traders keeping a close eye on China. While President Donald Trump continued his visit to the mainland -- where he said the trade relationship between the U.S. and Beijing has been "very one-sided and unfair" -- both consumer and producer prices in China rose more than expected last month. At the close, the Shanghai Composite was up 0.4%, while Hong Kong's Hang Sent added 0.8%, and hit a 10-year high in intraday action. Elsewhere, Japan's Nikkei climbed above 23,00 for the first time since early 1992 before settling down 0.2%, and South Korea's Kospi edged 0.07% lower.
European markets are swimming in red ink at midday, following a round of dismal corporate earnings results -- including those from Danish wind-turbine maker Vestas and luxury retailer Burberry. Most recently, the German DAX was down 1.1%, the French CAC 40 was off 0.9%, and London's FTSE 100 was flirting with a 0.7% loss as Brexit negotiations with the European Union resumed.