Stock futures are signaling a negative start to the week
Dow Jones Industrial Average (DJIA) futures are trading below fair value this morning, pointing toward a lower open for stocks after the long
Memorial Day weekend. With earnings season winding down, traders will turn their attention to economic data, with the nonfarm payrolls report for May set for release on Friday. This morning, investors are digesting a 0.4% rise in consumer spending for April -- which matched expectations, and could support the case for a June rate hike from the Fed. Falling oil prices could also be contributing to the risk-off approach, with July-dated crude futures down 0.7% at $49.45 per barrel, as oversupply concerns linger following last week's
OPEC decision.
Continue reading for more on today's market, including:
- How short sellers got crushed by cloud stock Nutanix.
- The nearly $1 billion development that pushed BlackBerry stock to new highs.
- Analysts ask "what's not to like?" about this apparel stock.
- Plus, a chipmaker getting hit; SunPower's big boost; and a major agreement among drugmakers.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 780,023 call contracts traded on Friday, compared to 501,670 put contracts. The resultant single-session equity put/call ratio moved up to 0.64, while the 21-day moving average stayed at 0.63.
- Ambarella Inc (NASDAQ:AMBA) is down 5.4% in pre-market trading, after Pacific Crest downgraded the semiconductor stock to "sector weight" from "overweight," saying the current share price already reflects any benefits from the company's self-driving technology. AMBA shares closed Friday at $65.05, up 20% year-to-date.
- Alternative energy stock SunPower Corporation (NASDAQ:SPWR) has rallied nearly 3% ahead of the open, bolstered by news of a 64-megawatt supply deal. SPWR, which closed Friday at $7.95, is now easily on pace for a fifth consecutive close above its 200-day moving average -- a technical feat the stock hasn't accomplished since January 2016.
- Shares of Array Biopharma Inc (NASDAQ:ARRY) are set to jump higher, thanks to news the company will collaborate with Bristol-Myers Squibb on a treatment for colorectal cancer. ARRY stock is pointed 7% higher in pre-market action.
- The monthly Case-Shiller home price index and consumer confidence data make up the rest of today's economic calendar.
Overseas Trading
Stocks in Asia settled slightly lower today in a light-volume session, with markets in Hong Kong and mainland China both closed for holiday. Traders in Tokyo weighed stronger-than-forecast retail sales against a larger-than-expected drop in household spending, but a stronger yen ultimately tipped the scales in the bears' favor. Meanwhile, it was a volatile day of trading in Seoul, where stocks struggled to find their footing after North Korea's Monday missile test. By the close, Japan's Nikkei dipped 0.02%, while South Korea's Kospi backpedaled 0.4%.
European stocks are lower at midday, led by losses for Italian banks. Deutsche Bank downgraded the sector over eurozone growth concerns -- a sentiment seemingly echoed by European Central Bank (ECB) President Mario Draghi, who said the region requires "an extraordinary amount of monetary support." Investors are also considering yesterday's remarks from Euclid Tsakalotos, finance minister of Greece, who asserted "the ball is very much on the side of our creditors" to reach a deal on debt relief. At last check, the French CAC 40 is off 0.8%, London's FTSE 100 has lost 0.5%, and the German DAX is down 0.2%.