Dow Futures Edge Higher as Traders Temper Rate-Cut Hopes
The pre-Fed meeting week is packed with earnings reports from big names
With investors turning a hopeful eye to an earnings-packed week, Dow Jones Industrial Average (DJI) futures are tacking on gains, following Friday's choppy trading session. Specifically, investor focus will be turned towards upcoming quarterly reports from several FAANG stocks, including Amazon (AMZN) -- which just got a price-target hike from KeyBanc this morning -- and Dow components like Boeing (BA).
Wall Street is also tempering its expectations for the July 30-31 Federal Open Market Committee (FOMC) meeting. Treasury yields are inching higher this morning as investors price inan interest rate cut of 25 basis points, versus the half-point cut some expected after last week's dovish remarks from New York Fed President John Williams.
Continue reading for more on today's market, including:
This struggling retailer just got slammed with an analyst downgrade. What options traders are expecting ahead of Boeing's earnings release. The movie stock Credit Suisse thinks could gain 90%. Plus, Vail Resorts buys out competition; Cal-Maine Foods unveils disappointing earnings; and Stifel gives Stitch Fix an upgrade.
5 Things You Need to Know Today
The Cboe Options Exchange (CBOE) saw 1.07 million call contracts traded on Friday, compared to 647,865 put contracts. The single-session equity put/call ratio landed at 0.60, while the 21-day moving average is 0.60.Colorado ski concern Vail Resorts Inc (NYSE:MTN) is inching lower in pre-market trading after announcing the purchase of sector competitor Peak Resorts Inc (NASDAQ:SKIS) for $11 per share in cash -- more than double Peak's Friday close. MTN is down 1.3% at $225.71 in electronic trading, while SKIS has surged 113.1% to $10.87. Egg producer Cal-Maine Foods (NASDAQ:CALM) is 5.8% lower to trade at $37.10 in pre-market action, after announcing a fiscal fourth-quarter loss that came in wider than analysts' estimates. The food producer also missed revenue expectations, citing "challenging" market circumstances. It's another upgrade for SFIX, as Stifel raised its rating on styling concern Stitch Fix (NASDAQ: SFIX) to a "buy" from a "hold." In a note to clients, the brokerage firm said it sees a compelling opportunity for SFIX to grow its U.K. client base. The stock is poised to open 3.2% higher at $27.75 as a result. There are no major economic reports today, but Halliburton (HAL), Steel Dynamics (STLD), TD Ameritrade (AMTD), and Whirlpool (WHR) will kick off a busy week of earnings.
Shanghai Tech Index Makes Volatile Debut
Asian stocks dropped, as traders reduced their expectations for a steep rate cut from the U.S. Fed next week. Traders also kept an eye trained on the new tech-heavy STAR Market index that began trading in Shanghai today, tripping circuit breakers in its volatile debut. Hong Kong's Hang Seng suffered the worst of the selling, shedding 1.4% as anti-government protests turned violent. Elsewhere, China's Shanghai Composite fell 1.3%, Japan's Nikkei gave back 0.2%, and South Korea's Kospi closed down 0.05%.
European markets are higher ahead of this week's European Central Bank (ECB) meeting, with rising energy stocks creating tailwinds. At last check, London's FTSE 100 and the German DAX are each flirting with a 0.3% gain, and the French CAC 40 is up 0.2%.