Dow Futures Down 175 Points as Trade Tensions Persist
Bond yields continue to fall
Stock futures are pointed lower, with the Dow Jones Industrial Average (DJI) signaling another triple-digit drop. Trade tensions between the U.S. and China continue to rev up, amid reports that China is set to use rare earth minerals as its next weapon in the trade war. As such, bond yields continue to fall, with traders concerned about an inverted yield curve -- often seen as a precursor to a recession. Meanwhile, futures on the Nasdaq-100 (NDX) and S&P 500 Index (SPX) are also lower ahead of the bell, with all three indexes pacing for steep monthly losses.
Continue reading for more on today's market, including:
2 ways heavy SPY puts could impact stocks, per Schaeffer's Senior V.P. of Research Todd Salamone.Video game stock added to Goldman's conviction list.This chip stock saw unusual options volume on a CPU reveal.Plus, Abercrombie's post-earnings pullback; one retailer's impressive quarterly beat; and the drug stock Goldman is buying.
5 Things You Need to Know Today
The Chicago Board Options Exchange (CBOE) saw 862,138 call contracts traded on Tuesday, compared to 588,704 put contracts. The single-session equity put/call ratio fell to 0.68, while the 21-day moving average rose to 0.91.Shares of Abercrombie & Fitch Co. (NYSE:ANF) have plunged 17% in pre-market trading, after the retailer reported a first-quarter same-store sales miss and issued disappointing guidance. ANF is headed toward its worst day since August 2018, after having already shed 16.3% for May.On the flip side, Dick's Sporting Goods Inc (NYSE:DKS) is surging 3.8% in electronic trading, just off an impressive first-quarter earnings beat and upwardly revised full-year guidance. The security has had a volatile year on the charts, but sports a 14.7% year-to-date gain.Shares of Radius Health Inc (NASDAQ:RDUS) are up 2.7% ahead of the bell, after Goldman Sachs upgraded the equity to "buy" from "neutral," and hiked its price target to $38 from $26 - a 79% premium to Tuesday's close at $21.23. RDUS has rallied nearly 29% in 2019, but more recently has consolidated gains beneath the $23 level.Today will be quiet on the economic front, though earnings will bring reports from Baozun (BZUN), Palo Alto Networks (PANW), and Veeva Systems (VEEV).
Trade Tensions Continue to Weigh on Asian Stocks
It was a mostly down day for equities in Asia, as trade tensions continued to weigh. However, mining and rare earth stocks in China saw sharp gains thanks to whispers the country could clamp down on these exports to hurt the U.S. in a trade war. As such, the Shanghai Composite closed with a 0.2% lead, with insurance stocks also seeing notable strength. In Hong Kong, the Hang Seng sank 0.6%, and Japan's Nikkei closed down 1.2%, while South Korea's Kospi gave back 1.3%.
It's a risk-off session in Europe, as well, while traders consider a slew of economic data. The unemployment rate in Germany unexpectedly rose in May, and inflation data out of France for the same month was softer than anticipated. Among individual names making headlines in the region, steelmaker ArcelorMittal SA is sliding after the company said it plans to cut production at a number of sites. At last check, the FTSE 100 and German DAX were down 1.3%, and France's CAC 40 was off 1.8%.