Stock futures are quiet following a volatile stretch
Dow Jones Industrial Average (DJI) futures are trading cautiously above fair this morning, following a volatile stretch for the blue-chip index that saw six triple-digit closes in the last eight days. Yesterday's U.S.-China trade optimism has dimmed, and instead investors are digesting a mixed quarterly report from trade-sensitive Home Depot (HD). While second-quarter earnings beat expectations, revenue fell just short of the consensus estimate. Plus, the company lowered its full-year sales guidance on uncertainty of the potential impact surrounding proposed tariffs on Chinese goods. HD stock is up 2.3% ahead of the bell.
Continue reading for more on today's market, including:
- What this sector standout says about recession risk, courtesy of Senior Market Strategist Matthew Timpane.
- 2 semiconductor stocks Raymond James is buying.
- A bull note boosted options activity on this booming gene therapy stock.
- Plus, new Apple TV+ details; Beyond Meat gets a big upgrade; and Sarepta's DMD drug rejected.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.07 million call contracts traded on Monday, compared to 589,277 put contracts. The single-session equity put/call ratio pulled back to 0.55, while the 21-day moving average remained at 0.70.
- Apple Inc (NASDAQ:AAPL) is in focus this morning, as reports swirl the company has committed $6 billion to content for its Apple TV+ service, higher than previous estimates of around $1 billion. Additionally, Bloomberg reported the streaming services will launch in November for $9.99 per month. AAPL is up 33% in 2019 at $210.35.
- Beyond Meat Inc (NASDAQ:BYND) stock is up 6% ahead of the bell, after J.P. Morgan Securities upgraded the plant-based burger maker to "overweight" from "neutral" while raising its price target by $1 to $189. Analyst Ken Goldman called BYND "appealing once again" due to its potential for new food service customers. The stock is fresh off yesterday's record high of $170.77, and is up 30% in the last six months.
- The shares of Sarepta Therapeutics Inc (NASDAQ:SRPT) are down 17% in electronic trading, after the Food and Drug Administration (FDA) declined to approve the company's Duchenne muscular dystrophy (DMD) drug, citing risk of infections. SRPT is set to open below $100 for the first time since late December, but even prior to today had shed 20% this quarter.
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There's not much on the economic calendar today, but a flurry of retailers will throw their hat into the earnings ring, including Kohl's (KSS), TJX Companies (TJX), and Urban Outfitters (URBN), while homebuilder Toll Brothers (TOL) will also release its quarterly results.
Semiconductors Lift South Korea; Europe Eyes Italian Election Drama
It was a mixed finish in Asia today. Stocks in Seoul outperformed on semiconductor strength, with South Korea's Kospi gaining 1%. Japan's Nikkei also ended on the plus side, adding 0.6%. Meanwhile, China's Shanghai Composite eased back 0.1%, and Hong Kong's Hang Seng fell 0.2%.
It's a quiet day of trading in Europe. Investors are keeping a close eye on political turmoil in Italy, where Deputy Prime Minister Matteo Salvini is once again pushing for a new election. At last check, the German DAX is 0.09% lower, the French CAC 40 is fractionally higher, and London's FTSE 100 is up 0.2% on as AstraZeneca pops on upbeat drug data.