AXP and TRV are pointd lower after earnings
Stocks are set for a lower open this morning, with Dow Jones Industrial Average (DJI) futures trading sharply below fair value. Earnings remain the main story on Wall Street, but while International Business Machines (IBM) stock is getting a lift from upbeat quarterly results, fellow Dow components American Express (AXP) and Travelers (TRV) are in the red after earnings. As such, the blue-chip index's five-day win streak could be in trouble.
Elsewhere, traders are digesting trade-related comments from members of the Trump administration, with economic advisor Larry Kudlow saying China doesn't want to make a trade deal -- though China's foreign ministry spokesperson said that was "bogus." Meanwhile, Commerce Secretary Wilbur Ross spoke positively about trade talks with Mexico, just as the Commerce Department begins hearings on U.S. tariffs on European cars.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 931,611 call contracts traded on Wednesday, compared to 519,461 put contracts. The single-session equity put/call ratio fell to 0.56, while the 21-day moving average remained at 0.61 for a third straight day.
- eBay Inc (NASDAQ:EBAY) is trading almost 9% lower before the open, after the company's second-quarter revenue fell short of expectations and it lowered its current-quarter outlook. The weak results were met with a wide range of bearish analyst notes, with Jefferies saying the company fell short on almost every important metric. EBAY stock was already down 9% in the past three months, and should come close to its November lows near $34.
- Square Inc (NYSE:SQ) is gaining in pre-market trading thanks to another round of bullish analyst attention, and the shares could hit fresh record highs as a result. Credit Suisse upgraded SQ to "outperform" from "neutral" and lifted its price target to $81 from $44, and Morgan Stanley boosted its price target to $75 from $43. At this time last year, Square was trading in the mid-20s, but closed yesterday at $68.29.
- Arcadia Biosciences Inc (NASDAQ:RKDA) is another big pre-market winner, though it's becoming the stock that cried wolf in the sense that none of its previous breakout attempts have lasted long. Specifically, RKDA stock almost immediately pulled back following its last surge in late June. This time around it's news that the company's hybrid tomatoes hit an important milestone that has the shares ready to open up 24.3%.
- Weekly jobless claims and the Philadelphia Fed business outlook survey will be released today. Earnings from Microsoft (MSFT), Bank of New York Mellon (BK), Capital One Financial (COF), Domino's Pizza (DPZ), E*TRADE Financial (ETFC), Fifth Third (FITB), Intuitive Surgical (ISRG), Nucor (NUE), Philip Morris (PM), Skechers (SKX), Skyworks Solutions (SWKS), and Union Pacific (UNP) are due.
Asian Markets Dip on Negative Trade Headlines
Asian markets closed lower today, after Kudlow indicated trade talks between the U.S. and China have stalled. The Shanghai Composite fell 0.5%, Hong Kong's Hang Seng gave back 0.4%, and South Korea's Kospi shed 0.3%. Elsewhere, Japan's Nikkei snapped its four-day win streak to close down 0.1% following a report that showed the country's trade surplus surged 66.5% last month as growing Chinese demand for chips offset declining car exports to the U.S.
Stocks in Europe are mixed at midday, as traders digest the latest quarterly earnings reports. While the shares of German software firm SAP and U.K. retailer Sports Direct are sinking after earnings, French telecom Iliad and Swiss robotics specialist ABB are jumping. Tariffs are also on the radar, after Kudlow suggested a trade deal with the European Union could be on the horizon. At last check, the German DAX and the French CAC 40 were both off 0.5%, while London's FTSE 100 is up 0.1%.