Amazon's dismal earnings showing is weighing on U.S. markets
U.S. stocks are gearing up for what's looking like a mostly lower open this morning. Dow Jones Industrial Average (DJI) futures are modestly below fair value as traders have another full slate of earnings to consider, including quarterly results from Intel (INTC) and Amazon.com (AMZN), the latter of which is moving sharply lower before the opening bell. Futures for the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also signaling slow starts, as stocks try to hold their weekly gains.
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5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.10 million call contracts traded on Thursday, compared to 751,053 put contracts. The single-session equity put/call ratio was 0.68, while the 21-day moving average arrived at 0.70 again.
- Looking closer at AMZN, the company's earnings per share of $4.23 missed analysts' estimates, and the company's revenue forecast for the holiday quarter was also softer than expected. The shares were testing the 320-day moving average coming into today, but they're now set to fall 6.1% when the market opens.
- INTC stock is up 3.2% before the open, after the chipmaker posted a strong quarter and raised its full-year outlook, thanks in part to a solid showing from the company's data center business. This price action would have Intel above the $53 level that's been a stiff ceiling since July.
- Uber Technologies Inc (NYSE:UBER) just received another vote of confidence from the analyst community. This time it was Guggenheim that weighed in with a "buy" rating, part of a string of bull notes we've seen recently on UBER stock. The shares seem to have reclaimed their footing above the $30 level, and just took out the 50-day moving average.
- The University of Michigan consumer sentiment index comes out. The earnings slate has Anhueser-Busch Inbev (BUD) and VF Corp (VFC). Next week's schedule is headlined by the Fed meeting and Apple's report.
European Stocks Down Again Amid Brexit Headlines
Asian stocks made modest moves on both sides of breakeven today, as traders digested a round of corporate earnings reports and awaited updates on U.S.-China trade relations and Brexit. China's Shanghai Composite outperformed, adding 0.5% on news Beijing is attempting to get Washington to lift tariffs in exchange for purchasing U.S. agricultural products. Japan's Nikkei and South Korea's Kospi also gained ground, rising 0.2% and 0.1%, respectively, as chip stocks surged on Intel earnings. On the flip side, Hong Kong's Hang Seng gave back 0.5%.
European markets are mostly lower at midday, with Brexit headlines swirling ahead of next Thursday's deadline for the U.K. to exit the European Union. Earnings are also in focus, with Anheuser-Busch InBev sinking after the Belgian beermaker's profit miss, while Kering and Moncler surge after the luxury retailers reported strong quarterly sales. At last check, London's FTSE 100 is down 0.5% and the German DAX is off 0.2%, though the French CAC 40 is up 0.1%.