Investors expect a Fed rate cut on Wednesday
With the Fed meeting right around the corner, Dow Jones Industrial Average (DJI) futures are hovering cautiously atop breakeven. Wall Street is expecting the Fed to cut its benchmark lending rate by 25 basis points this Wednesday, despite recent economic growth and positive unemployment data. However, blue chip Pfizer (PFE) is keeping the Dow's early gains in check, signaling a nearly 4% drop on plans to merge its off-patent drug unit with Mylan (MYL). On the trade front, investors are eyeing an upcoming meeting between the U.S. and China in Shanghai later this week.
Continue reading for more on today's market, including:
- The long-suffering weed stock that surged after CEO's abrupt departure.
- Signal says grab puts on this investment stock after earnings.
- Plus, Exact Sciences' $2.8 billion deal; Novartis dips on drug disappointment; and Deutsche Bank calls Domino's a "sell."
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.11 million call contracts traded on Friday, compared to 674,953 put contracts. The single-session equity put/call ratio landed at 0.60, while the 21-day moving average is 0.60.
- Biopharma concern Genomic Health, Inc. (NASDAQ:GHDX) stock is popping this morning, after cancer diagnostics name EXACT Sciences Corporation (NASDAQ:EXAS) announced its plan to purchased the firm in a $2.8 million cash-and-stock deal. While GHDX is up 3% at $70.75, the shares of EXAS have dropped 6.3% to trade at $110.54.
- Swiss-based drugmaker Novartis AG (NYSE:NVS) has lost 1.1% to trade at $92.17 in pre-market action, after its heart failure drug Entresto failed to meet the goal in an application for new use. J.P. Morgan Securities said the setback will keep the drug's commercial potential capped at around $4 billion, while Jefferies called it "detrimental" to the company's 2025 earnings-per-share estimates.
- Deutsche Bank initiated coverage on Domino's Pizza, Inc. (NYSE:DPZ) with a "sell" rating and a $208 price target, citing heavy competition in the food-delivery sector. DPZ has dipped 2% to $254 in response.
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In addition to the release of the the Dallas Fed manufacturing survey, today's calendar will feature earnings from AK Steel (AKS), Beyond Meat (BYND), Illumina (ILMN), National-Oilwell Varco (NOV), and Transocean (RIG).
European Markets Thrive as Pound Weakens
It was a down day for Asian equities. With traders awaiting this week’s Fed meeting and resumed trade talks between China and the U.S., China’s Shanghai Composite dipped 0.1%, and Hong Kong’s Hang Seng fell 1%. Investors considered China’s update on industrial profit for June, which showed contraction in the space. South Korea’s Kospi and Japan’s Nikkei also ended in the red, suffering pullbacks of 1.8% and 0.2%, respectively.
In Europe, however, stocks are mostly higher today. London’s FTSE 100 is leading the charge, sporting a sharp 1.7% lead halfway through the session as traders consider a weaker pound and a number of M&A headlines. In fact, the index is trading at its highest point in nearly a year. Meanwhile, the French CAC 40 and German DAX are both up 0.1%.