NDX futures are getting hammered as big tech names tumble
Dow Jones Industrial Average (DJIA) futures are trading below fair value, after the blue-chip index closed last week at a record high. It looks as if technology shares will be leading the path lower today, with mega-cap names -- including Dow stock Microsoft and Google parent Alphabet -- in the red ahead of the opening bell.
Tech stocks staged a late-session sell-off on Friday, after Goldman Sachs suggested the recent rally was overdone. Against this backdrop,
Nasdaq-100 Index (NDX) futures are taking the heaviest pre-market hit.
Continue reading for more on today's market, including:
- Apple stock is down 2.4% in electronic trading, after its worst day in a year.
- The TV stock rumored to be Amazon's next takeover target.
- A reminder to bulls to be wary of financial stocks this week.
- Plus, Jeff Immelt hits the bricks; the drug stock set to slump 32%; and analysts weigh in on Alibaba.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.3 million call contracts traded on Friday -- the most since Nov. 10 -- compared to 961,963 put contracts. The single-session equity put/call ratio jumped to 0.72, and the 21-day moving average remained at 0.61.
- General Electric Company (NYSE:GE) said CEO Jeff Immelt will retire after 16 years on the job, and will be replaced by the head of GE healthcare, John Flannery, effective Aug. 1. GE stock is up 3.6% in electronic trading, but remains far below its 200-day moving average -- a trendline last tested in late April.
- The Food and Drug Administration (FDA) will not approve Coherus Biosciences Inc's (NASDAQ:CHRS) version of Amgen's Neulasta, citing a need for additional data. CHRS stock has plunged 33% ahead of the bell, while AMGN -- which is fighting its own FDA fires -- is up 0.6%.
- Alibaba Group Holding Ltd (NYSE:BABA) saw its price target raised at no fewer than three brokerage firms, with Benchmark boosting its target $35 to $175 -- record-high territory. Following a blowout week, BABA stock is set to open the session down 0.6%.
- The Treasury budget will be released today, while Dominion Diamond (DDC) will report earnings.
Overseas Trading
Stocks in Asia closed lower, as traders around the globe prepare for upcoming central bank meetings in the U.S., Japan, and Britain. The tech sell-off that hit the U.S. on Friday also plagued the region, with Samsung Electronics suffering notable losses in South Korea, pressuring the Kospi 1% lower. Japanese tech shares also tumbled, including Nintendo stock, and the Nikkei closed down 0.5%. A number of Apple suppliers dropped as well. Hong Kong's Hang Seng was the biggest loser in the region, down 1.2% at the close, while China's Shanghai Composite dipped 0.6%.
The major European stock indexes are falling at midday, too. Aside from weakness in the tech sector, bank stocks are also underperforming. Plus, traders continue to consider last week's political bombshell of a hung parliament after the surprising election results in the U.K. At last check, both the French CAC 40 and German DAX were down roughly 1%, while London's FTSE 100 has shed 0.1%.