General Electric is set to rally on turnaround plans
Futures on the Dow Jones Industrial Average (DJI) are cautiously higher this morning, as stocks look to recover from Monday's sell-off. Harley-Davidson (HOG) remains in focus, after President Donald Trump tweeted early this morning that the motorcycle company will be "taxed like never before" if they shift production of Europe-bound vehicles overseas to avoid retaliatory tariffs.
Also on the radar is General Electric (GE), which is set for its first day of trading off the Dow since 1907. GE stock is up 6.4% in electronic trading, boosted by freshly announced plans to spin off its healthcare division, divest its Baker Hughes stake, and pay down debt.
Continue reading for more on today's market, including:
- Avoid big-cap bank stocks after the rate hike, says Schaeffer's Senior V.P. of Research Todd Salamone.
- SMH put options pop as chip stocks sink.
- One analyst expects this penny stock to more than double.
- Plus, Intel stock gets hit with a downgrade; MGM is booted from Goldman's conviction list; and Spotify stock soars on a bullish Barclays initiation.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.17 million call contracts traded on Monday, compared to 712,240 put contracts. The single-session equity put/call ratio rose to 0.61, while the 21-day moving average fell to 0.56.
- Intel Corporation (NASDAQ:INTC) is continuing its downward spiral, off 1.8% ahead of the bell after Bernstein downgraded the stock to "underperform" and cut its price target to $42 from $54. As of last night's close at $50.71, INTC had shed more than 11% from its June 1 closing high.
- Casino and gaming operator MGM Resorts International (NYSE:MGM) is down 1.8% in electronic trading after a Goldman Sachs downgrade to "neutral" from "buy," with the stock losing its place on the firm's conviction list. MGM is set to open at a fresh annual low around $28.75.
- Barclays began coverage on Spotify Technology SA (NYSE:SPOT) with an "overweight" rating and $210 price target, with this latest bull note sending the shares up 2.5% in pre-market trading. The new target implies expected upside of 23.3% to Monday's close at $170.37.
- Today's economic calendar features consumer confidence data and the S&P CoreLogic Case-Shiller home price index, while Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan will speak in the afternoon. AeroVironment (AVAV), Lennar (LEN), and Sonic (SONC) are scheduled to unveil quarterly reports.
More Multi-Year Lows for China's Shanghai Composite
It was a lackluster day for Asian stock markets. China’s Shanghai Composite fell to another two-year low and finished down 0.5%, landing the index in bear-market territory. Hong Kong’s Hang Sell fell as well, dropping 0.3% to mirror the decline in South Korea’s Kospi. On the other hand, Japan’s Nikkei managed a fractional gain, even as technology stocks pulled back.
In Europe, stocks are attempting to bounce back at the midway point. Some of Monday’s worst performers are today’s biggest gainers, including mining and bank stocks. Another notable riser is France-based payments processor Ingenico, thanks to fresh buyout speculation. London’s FTSE 100 was up 0.5% at last check, and France’s CAC 40 has managed a 0.2% advance, though Germany’s DAX was slightly lower.