The 10-year Treasury yield is holding near seven-year highs
Dow Jones Industrial Average (DJI) futures are signaling a negative start this morning, weighed down by Cisco Systems' (CSCO) lower-than-expected fiscal third-quarter revenue in its security business and lackluster forecast. The negative earnings reaction is overshadowing strong first-quarter e-commerce sales growth for Walmart (WMT) -- continuing an impressive round of retail earnings -- and is pressuring the tech sector. Elsewhere, the 10-year Treasury yield is continuing to hold near seven-year highs. Later today, a second round of trade talks with the U.S. and China will begin in Washington.
Continue reading for more on today's market, including:
- Nike's record high drew a fresh batch of options bulls.
- 2 reasons this retail stock could rally tomorrow.
- Blink stock has now scaled the Nasdaq twice in two weeks.
- Plus, Coca-Cola stock upgraded; Kroger teams up with Ocado; and J C Penney slumps after disappointing sales.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 990,611 call contracts traded on Wednesday, compared to 499,498 put contracts. The single-session equity put/call ratio fell to 0.50, and the 21-day moving average remained at 0.62.
- The Coca-Cola Co (NYSE:KO) is up 0.9% in electronic trading, after Barclays upgraded the Dow stock to "overweight" from equal weight," while issuing a price-target hike to $48 from $45. The analyst in coverage waxed optimistic on the soda giant's business transformation. Coca-Cola stock fell to an annual low of $41.45 on Tuesday, and the $45 level -- currently home to its 200-day moving average -- has provided stiff resistance since early February.
- Kroger Co (NYSE:KR) stock is up 3.1% ahead of the bell, after the company said it was partnering with online grocery retailer Ocado. Kroger will use the U.K.-based company's online delivery technology for orders in the U.S. Kroger stock has traded in a tight range lately, but the shares could test their 80-day moving average today for the first time since a post-earnings bear-gap in early March.
- Unlike its sector peer Macy's (M), J C Penney Company Inc (NYSE:JCP) reported disappointing same-store sales in the first quarter, with the retailer citing slow traffic due to an extended period of winter weather. The company also cut its full-year adjusted profit forecast, sending JCP stock down 12% in electronic trading -- set for its lowest open since November.
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Today will bring the Philadelphia Fed business survey came in at a better-than-expected 34.4 in May while weekly jobless claims rose more than forecast. The Fed's balance sheet is also anticipated. Minneapolis Fed President Neel Kashkari is slated to speak mid-morning. Applied Materials (AMAT) will report earnings.
Trade Talks Spook Asian Stocks, Crude Boosts Europe
Asian stocks finished mostly lower, as traders continue to watch U.S. Treasury yields and a second round of U.S.-China trade talks. Japan's Nikkei was the only gainer, closing up 0.5%. Despite an impressive post-earnings boost from tech giant Tencent, Hong Kong’s Hang Seng fell 0.5%. Likewise, South Korea's Kospi and China's Shanghai Composite also shed 0.5%.
European markets are higher at midday, as crude hit a more than three-year high. Shares of U.K. grocery and delivery service Ocado also soared, after the company announced a new deal with Kroger that will bring its business to the U.S. London's FTSE 100 is up 0.2%, France's CAC 40 is 0.4% higher, and Germany's DAX has gained 0.3%, at last check.