FB stock could suffer its worst one-day loss ever
Dow Jones Industrial Average (DJI) futures are trading above fair value this morning, thanks to lingering optimism about a U.S.-Europe trade deal, but the Nasdaq-100 Index (NDX) is set to nosedive due to Facebook's (FB) disappointing quarterly results. Shares of FB were last seen 21% lower in pre-market trading -- on pace for their worst day ever -- after the company reported lower-than-expected revenue and warned on profit margins. This could weigh on other tech giants, including Amazon (AMZN), which is set to report after the close. Also on the earnings front, McDonald's (MCD) is edging lower after its second-quarter report, while fellow blue chip Intel (INTC) will join AMZN in the earnings booth post-close.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.02 million call contracts traded on Wednesday, compared to 619,039 put contracts. The single-session equity put/call ratio moved down to 0.61, while the 21-day moving average held at 0.62.
- On top of headwinds from Facebook's sell-off, fellow social media stock Twitter Inc (NYSE:TWTR) is feeling heat from President Donald Trump, who this morning tweeted about the company "shadow banning" Republicans and said "we will look into this." TWTR shares have been edging lower since their three-year high of $47.79 on June 15, but may find support at the 50-day moving average. The stock is pointed 3.5% lower ahead of the bell.
- Spotify Technology (NYSE:SPOT) stock was down more than 5% in pre-market trading, but has since turned 2% higher. Traders are digesting a slowdown in revenue growth vs. solid subscriber growth. SPOT stock hit an all-time high of $190.80 just two days ago, and most analysts are bullish, though Pivotal Research was skeptical ahead of earnings.
- On the other hand, Under Armour Inc (NYSE:UAA) is on the rise after earnings, set to open up 4.8%. The company reported better-than-expected revenue for the second-quarter, thanks to strong growth in Asia and Europe. UAA stock was already up more than 46% in 2018 coming into today, closing Wednesday at $21.08.
- The economic calendar heats up today with updates on durable goods, international trade, and weekly jobless claims set for release. American Airlines (AAL), CME (CME), Chipotle (CMG), Comcast (CMCSA), Deckers Outdoor (DECK), Dunkin Brands (DNKN), Electronic Arts (EA), First Solar (FSLR), Hershey (HSY), Mastercard (MA), PulteGroup (PHM), Southwest Airlines (LUV), Starbucks (SBUX), and Tractor Supply (TSCO) will unveil earnings.
European Stocks Mixed as Draghi Takes the Mic
It was a mostly negative finish in Asia today, with Chinese stocks leading the path lower following Wednesday's U.S.-European Union (EU) trade announcement. The Shanghai Composite closed down 0.7%, while Hong Kong's Hang Seng fell 0.5%. Japan's Nikkei also slipped, shedding 0.1% as Eisai plunged on news the U.S. Food and Drug Administration (FDA) will require more testing for the drugmaker's Alzheimer's study. South Korea's Kospi bucked the bearish trend, adding 0.7% on a positive earnings reaction for chipmaker SK Hynix.
European markets are mixed at midday, as traders digest the Trump-Juncker trade deal and the results from the European Central Bank (ECB) meeting, which chose to stand pat on interest rates. A press conference from ECB President Mario Draghi is now underway. At last check, the German DAX is up 1.3% as automakers rally, and the French CAC 40 is 0.3% higher. London's FTSE 100, meanwhile, is down 0.09% on a negative earnings reaction for oil name Royal Dutch Shell.