Dow Jones Industrial Average Futures Slip with Oil as Qatar Rift Rattles Markets
Dow Jones Industrial Average (DJIA) futures are trading below fair value, with the blue-chip index taking a breather following Friday's record high. While the pre-market downside is modest, there's plenty of news for stocks to price in -- including this weekend's terrorist attack in London, an upwardly revised reading on first-quarter productivity, and Apple's Worldwide Developers Conference (WWDC). Meanwhile, July-dated crude futures are trading down 0.6% at $47.38, after five Middle Eastern countries -- including OPEC heavyweight Saudi Arabia -- severed diplomatic ties with Qatar.
Continue reading for more on today's market, including:
Exxon Mobil looks set for another down day, after checking in as the worst Dow stock on Friday.Analyst: This chip stock could surge another 30%.In case you missed it, 3 tech stocks in focus ahead of WWDC.Plus, the drug stock up 40% ahead of the open; Herbalife expects an FTC hit; andAmazon's rumored takeover target.
5 Things You Need to Know Today
The Chicago Board Options Exchange (CBOE) saw 930,484 call contracts traded on Friday, compared to 560,803 put contracts. The single-session equity put/call ratio fell to 0.60, and the 21-day moving average remained at 0.63.Following an early May earnings beat, nutritional supplement specialist Herbalife Ltd. (NYSE:HLF) lowered its current-quarter sales forecast on expectations that stricter regulations from the Federal Trade Commission (FTC) will have a short-term negative impact on its top line. Although the company raised its quarterly profit forecast, HLF stock is down 5.4% in electronic trading.At the American Society of Clinical Oncology's (ASCO) annual meeting, Loxo Oncology Inc (NASDAQ:LOXO) said its cancer treatment, larotrectinib, was successful in shrinking advanced-stage tumors. This isn't the first time positive data has helped boost LOXO stock, and today, the shares are trading 40% higher ahead of the bell.The Nikkei is reporting that Amazon.com, Inc. (NASDAQ:AMZN) could join Foxconn as a possible suitor for Toshiba's semiconductor division. After notching a record high on Friday, AMZN stock is trading down 0.1% ahead of the bell.Factory orders and the Institute for Supply Management's (ISM) non-manufacturing index will also be released today. Ascena Retail Group (ASNA), Dave & Buster's Entertainment (PLAY), Navistar (NAV), Thor Industries (THO), and Xcerra Corp (XCRA) will kick off the week with earnings reports.
Overseas Trading
Asian stock markets closed broadly lower. In China, the Shanghai Composite lost 0.5%, with bank stocks suffering steep losses, even after data revealed better-than-expected growth in the country's services sector. Meanwhile, the Hang Seng dipped 0.2%. A stronger yen resulted in a 0.03% decline for the Nikkei in Japan, as major exporters, such as automaker Toyota, underperformed. Elsewhere in the region, South Korea's Kospi fell 0.1%.Stocks are also under pressure in Europe at midday. Investors are considering this weekend's terrorist attack in London, as well as the latest economic data. Specifically, auto sales in the U.K. fell more than expected in May, and data for the services sector was also underwhelming. Traders are likely preparing for Thursday's European Central Bank (ECB) meeting, as well. At last check, the French CAC 40 had fallen 0.6%, and London's FTSE 100 was down 0.3%. Markets in Germany were closed for a public holiday.