Dow Futures Point Lower Ahead of Powell Speech
Wall Street is gearing up for Fed Chair Jerome Powell's testimony to the Congressional Joint Economic committee later today
Dow futures are trading nearly 88 points below fair value this morning as investors look ahead to Fed Chair Jerome Powell's testimony later today before the Congressional Joint Economic Committee, just weeks after the Federal Open Market Committee (FOMC) once again cut interest ratesin October. Wall Street is also continuing to keep an eye on U.S.-China trade relations, after a Wall Street Journal report said the two sides have come to a standstill, as they decide on whether preexisting tariffs or only upcoming duties should be cancelled. Elsewhere, the Nasdaq and S&P are both pointing to opening losses as well, retreating from yesterday's record highs.
Continue reading for more on today's market, including:
3 surging stocks targeted by call traders. How stock markets affect elections, according to Schaeffer's Senior Quantitative Analyst Rocky White. Plus, Luckin stock pops on lifted outlook; Nike to stop selling on Amazon; and APO buys TECD.
5 Things You Need to Know Today
The Cboe Options Exchange (CBOE) saw 1.16 million call contracts traded on Tuesday, compared to 688,530 put contracts. The single-session equity put/call ratio moved down to 0.59, while the 21-day moving average came in at 0.62. The shares of China-based Starbucks (SBUX) rival Luckin Coffee Inc (NASDAQ:LK) are popping this morning after the firm posted a smaller-than-expected loss for its third quarter, and forecast fourth-quarter revenue that beat analysts' estimates. The stock is up 14.4% in pre-market trading. Nike Inc (NYSE:NKE) stock is inching lower, down 0.2% ahead of the bell, after Bloomberg reported the footwear name would no longer be selling via Amazon,com, Inc (NASDAQ:AMZN), and instead will focus its efforts on direct sales. Amazon is also inching lower, down 0.3% in electronic trading. Apollo Global Management Inc (NYSE:APO) is set to acquire Tech Data Corp (NADAQ:TECD) in a deal worth $130 per share in cash, or roughly $5.4 billion including debt -- confirming speculation that first broke last month. TECD has risen 3.7% ahead of the open to trade right around Apollo's offer price. Today brings the latest consumer price index (CPI), as well as a speech from Fed Chair Powell. Cisco Systems (CSCO), Beazer Homes (BZH), Energizer (ENR), Canada Goose (GOOS), Meritor (MTOR), NetApp (NTAP), Stratasys (SSYS), and Vipshop (VIPS) will report earnings.
Trump China Comments, Hong Kong Protests Bruise Asian Markets
Markets in Asia dipped today, as investors reacted to President Trump's China comments from Tuesday, when he said the country has cheated the U.S. on trade in the past. Hong Kong's Hang Seng paced the region with a 1.8% drop, as city leader Carrie Lam said the protesters were "paralyzing" the city. China's Shanghai Composite finished down 0.3%, while Japan's Nikkei gave back 0.9%, as investors digested subpar earnings from automaker Nissan. South Korea's Kospi shed 0.9%, as well.
European stocks are also lower, as investors unpack a wide range of economic data and corporate earnings. London's FTSE 100 is down 0.4%, after data showed U.K. inflation falling to three-year lows last month. Consumer prices rose at a lower-than-expected rate, while eurozone industrial production increased for the second straight month. The French CAC 40 is down 0.3%, and the German DAX is down 0.6%, weighed down by Deutsche Bank and lackluster earnings.