The S&P and Nasdaq could open lower
U.S. stock futures are trading close to fair value this morning, with the Dow Jones Industrial Average (DJI) signaling a positive start. The S&P 500 Index (SPX) and Nasdaq-100 Index (NDX), on the other hand, are set to open lower, after Tuesday's surge brought all three major benchmarks near record highs. While tech fueled yesterday's big gains, today's focus could be on homebuilders, after the Commerce Department said August housing starts arrived at a higher-than-expected 1.282 million, even as building permits eased to 1.229 million. And ahead of today's weekly inventories update, October-dated crude futures are down 0.09% at $69.76 per barrel.
Continue reading for more on today's market, including:
- 40 stocks to trade right now, according to Schaeffer's Senior Quantitative Analyst Rocky White.
- Why Visa stock could hit record highs next month.
- History says to avoid this FAANG stock in the near term.
- Plus, Starboard's big casino stake; weed stocks set to soar; and the online brokerage Jefferies is buying.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 988,476 call contracts traded on Tuesday, compared to 546,089 put contracts. The single-session equity put/call ratio fell to 0.55, and the 21-day moving average edged down to 0.59.
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Starboard Value has taken a more than $500 million stake in MGM Resorts International (NYSE:MGM), according to the New York Post, with the activist investor reportedly wanting the casino to sell its Macau property. MGM stock is up 3.3% ahead of the bell, set to open near its 30-day moving average -- which capped a late-August rally attempt.
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It's looking to be another big day for weed stocks, after Tilray Inc (NASDAQ:TLRY) CEO Brendan Kennedy told CNBC that pharmaceutial companies should partner with firms like Tilray to "hedge the offset from cannabis substitution." Looking at the cannabis sector, TLRY is trading 40% higher ahead of the bell, Canopy Growth Corp (NYSE:CGC) is up 5.7%, and Cronos Group Inc (NASDAQ:CRON) has added 10%.
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Jefferies upgraded E*TRADE Financial Corp (NASDAQ:ETFC) to "buy" from "hold," citing an attractive risk/reward profile. The analyst in coverage also pegged the online brokerage firm as a prime takeover target, and that ETFC could fetch at lest $70 per share. Last night, the stock closed at $53.76, but is up 1.6% in electronic trading.
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The weekly crude inventories report, August housing starts, and the MBA mortgage index are slated for release today. Red Hat (RHT) steps into the earnings confessional.
Tokyo Stocks Climb After BoJ Meeting
Stocks throughout Asia climbed higher for a second straight session, following the lead of their U.S. counterparts. Hong Kong's Hang Seng added 1.2% and China's Shanghai Composite added 1.1%. Japan's Nikkei also climbed 1.1%, after the Bank of Japan (BoJ) held rates steady and gave a promising outlook for the nation's economy. Looking closer, Japanese exporters were some of the top gainers. Rounding out the region, the South Korean Kospi dipped 0.02%.
In Europe, stocks are trading mostly in positive territory, though upside so far has been limited. Mining and auto stocks have been some of the most notable risers thanks to strength out of Asia, while British retailer Kingfisher is sinking on a disappointing sales update. At last check, London's FTSE 100, France's CAC 40, and Germany's DAX were all sporting 0.2% leads.