Dow futures are down triple digits as the U.S. dollar gains ground
Stocks are pointed lower to kick off the shortened week, with equities on track to snap their winning streaks. Dow Jones Industrial Average (DJI) futures are down triple digits, as retail giant Walmart (WMT) takes a pre-market dive after fourth-quarter earnings fell short of estimates. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are down as well, moving inversely to a rising U.S. dollar and surging bond yields.
Continue reading for more on today's market, including:
- Why the recent VXX breakout leaves cause for concern, says founder and CEO Bernie Schaeffer.
- Options traders pile on these 2 steel stocks.
- These 3 drug stocks made outsized moves on Friday.
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Plus, Home Depot's earnings beat; MGM's earnings miss; and Qualcomm ups its bid for NXP.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.3 million call contracts traded on Friday, compared to 691,446 put contracts. The single-session equity put/call ratio fell to 0.52, while the 21-day moving average remained at 0.63.
- Home Depot Inc (NYSE:HD) stock is up 2.2% in electronic trading, after the home improvement giant reported earnings and revenue that topped analysts' estimates. It was the sixth straight quarter Home Depot beat earnings estimates. Home Depot shares look set to extend a recent rally from support at their 80-day moving average, building on their year-over-year gain of nearly 29%.
- MGM Resorts International (NYSE:MGM) stock is down 1.8% ahead of the bell, after the casino reported adjusted fourth-quarter earnings that fell short of expectations. MGM stock is on track to continue its bearish February seasonality, with today's pre-market drop adding to its month-to-date decline of 5.4%.
- Shares of QUALCOMM, Inc. (NASDAQ:QCOM) are down 3.2% in electronic trading, after the chip company raised its bid for NXP Semiconductors (NXPI) to $127.50 per share, up from $110 per share. The sweetened offer further complicates Broadcom's (AVGO) attempts to take over Qualcomm. QCOM shares are once again backing down from their 40-day moving average, which has acted as resistance since early February.
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Today will be a quiet day on the economic data front. Ctrip.com (CTRP), Dillard's (DDS), Domino's Pizza (DPZ), Duke Energy (DUK), FirstEnergy (FE), Medtronic (MDT), Newfield Exploration (NFX), and Transocean (RIG) will kick the week off with earnings reports.
Tech Stocks Slide in Seoul; Spain Eyes ECB Executive Board
It was a negative finish in Asia today, though trading volume remained light with Chinese markets closed for the Lunar New Year holiday. South Korea's Kospi suffered the biggest blow, shedding 1.1% as tech heavyweights Samsung Electronics and SK Hynix slid. Elsewhere, declining financial shares sent Japan's Nikkei down 1% and Hong Kong's Hang Seng 0.8% lower.
European benchmarks are mixed at midday, as traders look for guidance from U.S. markets, which were closed yesterday for Presidents Day. In focus is a rare earnings miss for HSBC, while quarterly results from mining giant BHP Billiton also disappointed. Traders are also keeping a close eye on developments in a corruption scandal surrounding the head of Latvia's central bank, while Spain's Economy Minister Luis de Guindos was picked to become the next vice president of the European Central Bank (ECB) -- giving the country a voice on the Executive Board for the first time since 2012. At last check, the French CAC 40 and the German DAX were both up 0.1%, while London's FTSE 100 was down 0.2%.