Apple stock is weighing on the Dow
Dow Jones Industrial Average (DJIA) futures are lower this morning, signaling the index's pullback from record highs. The slowdown can be attributed to a combination of overseas trouble in Spain, a downgrade for Nike (NKE) stock, and what could be a rough day for Apple (AAPL), amid concerns about iPhone 8 demand and reports of Apple Watch trouble in China. The S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also being weighed down by slipping tech stocks, overshadowing a 44-year low in weekly jobless claims. The anticipated pullback comes coincidentally 30 years after Black Monday.
Continue reading for more on today's market, including:
- Black Monday and the worst days of the year for stocks.
- The rare sentiment signal flashing for the first time in months.
- Options bulls are flocking to Honeywell stock ahead of earnings.
- Plus, Wal-Mart nears a web deal; Blue Apron makes workforce cuts; and Gilead Sciences scores a big win.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 927,101 call contracts traded on Wednesday, compared to 667,445 put contracts. The single-session equity put/call ratio rose to 0.72, while the 21-day moving average rose to 0.65.
- Retail giant Wal-Mart Stores Inc (NYSE:WMT) is reportedly nearing a web deal with Lord & Taylor, according to The Wall Street Journal. The deal represents Wal-Mart's efforts to compete with Amazon's e-commerce dominance. WMT stock is currently down 0.1% before the bell.
- Fellow Amazon competitor Blue Apron Holdings Inc (NYSE:APRN) stock is down 0.6% in electronic trading, after reportedly laying off 6% of its workforce. The meal-kit delivery company cited increased pressure from competitors as reasons for the cuts. APRN stock is down roughly 50% from its initial public offering (IPO) price of $10.
- Gilead Sciences, Inc. (NASDAQ:GILD) stock is up 2% in electronic trading, after the biotech company won approval from the Food and Drug Administration (FDA) for its immunotherapy treatment designed to treat lymphoma. GILD stock has received its fair share of analyst attention lately, and has tacked on 20% in the past six months.
- Travelers Companies (TRV), Verizon (VZ), athenahealth (ATHN), BB&T (BBT), Blackstone (BX), Del Taco (TACO), E*TRADE (ETFC), KeyCorp (KEY), PayPal (PYPL), Quest Diagnostics (DGX), WD-40 (WDFC) step into the earnings confessional today.
It was a mixed session for stocks in Asia. Focus mostly centered on economic data out of China, as the country’s third-quarter gross domestic product (GDP) slowed from a year earlier. Meanwhile, industrial production out of the region for September topped expectations, as did retail sales. By the close, the Shanghai Composite had shed 0.4%, while Hong Kong’s Hang Seng dropped 1.9% for its largest single-day drop in roughly two months. There was also data to consider in Japan, where export data for September missed expectations. Still, the Nikkei picked up 0.4%. In South Korea, the Kospi fell 0.4% as well.
There’s no ambiguity in Europe, where major stock indexes are broadly lower halfway through the day. September retail sales out of the U.K. missed expectations, while investors also consider news that Spain plans to utilize a rule that’ll remove Catalonia’s autonomy in the wake of political protests. As for individual equities, Unilever stock is falling sharply after the company reported disappointing third-quarter revenue growth. At last check, the German DAX had given back 0.8%, the French CAC 40 was down 0.7%, and London’s FTSE 100 had fallen 0.5%.