U.S. Stock Futures Tank After North Korea Nuclear Test

The Dow Jones Industrial Average (DJIA) is pointed lower before the bell, after North Korea conducted another nuclear test Sunday, adding fuel to current geopolitical tensions. In addition, a South Korean media report indicated North Korea is transporting an intercontinental ballistic missile (ICBM) to its coast. In response, the White House reiterated that "all options are on the table," while Russian President Vladimir Putin reportedly warned that "ramping up military hysteria in such conditions ... could lead to a global, planetary catastrophe." Futures on the S&P 500 Index (SPX) and the Nasdaq-100 Index (NDX) are also pointed lower as a result.

Meanwhile, as residents in Texas and Louisiana deal with the aftermath of Hurricane Harvey, Florida and Puerto Rico have declared a state of emergency ahead of Category 5 Hurricane Irma, which is making its way toward the Caribbean.

Continue reading for more on today's market, including:

• 3 car stocks revving higher after Hurricane Harvey.
• 2 auto parts suppliers that could struggle in the short term, if past is prologue.
• Our Senior VP of Research on options pricing pitfalls, chart analysis, and the sector he still hates.
• Plus, United Technologies buys Rockwell Collins; the drug stock set to double; and Cellectis tanks after a patient death.

1. The Chicago Board Options Exchange (CBOE) saw 863,637 call contracts traded on Friday, compared to 484,585 put contracts. The single-session equity put/call ratio fell to 0.56, and the 21-day moving average dropped to 0.68.
2. United Technologies Corporation (NYSE:UTX) agreed to buy Rockwell Collins, Inc. (NYSE:COL) for $30 billion, confirming recent takeover speculation. UTX hit a record high of $124.79 on July 12, before pulling back to its 200-day moving average, and was last seen trading 2% lower in electronic trading, while COL is pointed 1.3% higher.
3. Shares of Insmed Incorporated (NASDAQ:INSM) are up 104.2% in pre-market trading, after the company announced positive late-stage trial results for its rare lung disease therapy. INSM is poised to hit a new annual high.
4. After touching an annual high on Friday, Cellectis SA (ADR) (NASDAQ:CLLS) stock is down 31% in electronic trading, after the drugmaker was forced to suspend testing of its cell therapy cancer treatment following a patient death. The gene-modified drug is similar to Novartis' cell therapy treatment, which recently scored a landmark FDA approval.
5. Factory orders will hit the Street today. Traders will also hear from Fed Governor Lael Brainard, Minnesota Fed President Neel Kashkari, and the Dallas Fed President Robert Kaplan. Hewlett Packard (HPE) will release earnings. 

Overseas Trading

It was a mixed finish in Asia today, as traders weighed a South Korean media report that North Korea is transporting an ICBM to its coast following another missile test by the rogue nation over the weekend. The tensions weighed on stocks in South Korea and Japan, with the Kospi and Nikkei shedding 0.1% and 0.6%, respectively. In China, the Shanghai Composite added 0.2%, after the Caixin services purchasing managers index (PMI) rose to 52.7 in August -- its highest reading in three months -- though the official nonmanufacturing PMI fell to 53.4. Hong Kong's Hang Seng closed fractionally higher.

Stocks in Europe are trading on both sides of breakeven at midday, after IHS Markit's composite PMI for the eurozone edged slightly down to 55.7 last month from a preliminary reading of 55.8 -- though it's still holding well above the critical 50 level that marks expansion. Germany's DAX is outpacing its regional peers, up 0.6%, as healthcare stocks rally on rumors Merck KGaA could put its consumer health business up for sale. The French CAC 40, meanwhile, is holding on to fractional gains, while London's FTSE 100 is down 0.02%.