Dow Futures Signal Triple-Digit Drop After North Korea Provocation

The Dow Jones Industrial Average (DJIA) is pointed lower before the open, as geopolitical tensions were revived after North Korea launched a missile test that flew over Japan before landing in the ocean. President Trump said the world "has received North Korea's latest message loud and clear," and that "all options are on the table." Against this backdrop, Dow futures are signaling a triple-digit drop out of the gate, while gold futures are higher amid a flight to safety and a weaker dollar. At last check, December-dated gold was up 1% at $1,328.60 an ounce. Elsewhere, gasoline futures continue to rise as Tropical Storm Harvey still threatens the Gulf Coast.

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

• Stop sweating this moving average, according to Schaeffer's Senior V.P. of Research Todd Salamone.
• Options traders are targeting record highs for this FAANG stock. 
• Expedia stock sank amid CEO buzz.
• Plus, the sinking sporting retailer; Movado earnings; and the biotech stock shot down by the FDA.

1. The Chicago Board Options Exchange (CBOE) saw 668,363 call contracts traded on Monday, compared to 364,369 put contracts -- the fewest puts since March. The single-session equity put/call ratio fell to 0.55, and the 21-day moving average remained at 0.71.
2. Shares of Finish Line Inc (NASDAQ:FINL) stock are down 29.5% in pre-market trading, after the company cut its full-year outlook and adopted a "poison pill" shareholder rights program. As such, Citigroup downgraded the sporting goods stock to "sell" from "neutral," and sliced its price target to $5 from $14, joining at least six other brokerages who issued price-target cuts for FINL.
3. Better-than-expected second-quarter earnings and revenue has Movado Group, Inc (NYSE:MOV) stock up 9% before the bell. The watch designer also announced a new $50 million stock buyback program.
4. Acorda Therapeutics Inc (NASDAQ:ACOR) stock is down 31% in electronic trading, after the Food and Drug Administration (FDA) rejected its marketing application for its Parkinson's drug. The biotech stock closed at $25.70 on Monday.
5. The S&P CoreLogic Case-Shiller home price index and consumer confidence will be released today, along with earnings reports from Best Buy (BBY), H & R Block (HRB), and Hain Celestial (HAIN).

Overseas Trading

Stocks throughout Asia struggled following North Korea’s missile launch. Japan’s Nikkei was the biggest loser, dropping 0.5%, as the safe-haven yen strengthened against the U.S. dollar. In South Korea, heavy losses from large-cap stocks sank the Kospi 0.2%. Meanwhile, Hong Kong’s Hang Seng fell 0.4%, though China’s Shanghai Composite managed to close 0.1% higher, as investors there focused on domestic earnings.

The selling is much worse in Europe, as major indexes are pacing for one of their worst days of the year. On top of the rising North Korea tensions, investors considered fresh economic data out of France, including second-quarter gross domestic product (GDP) that matched expectations. And in Germany, market researcher GfK reported that consumer confidence will hit a roughly 16-year peak. Still, France’s CAC 40 and Germany’s DAX were last seen 1.3% and 1.8% lower, respectively. In London, the FTSE 100 has dropped 1.1%.