The Dow is set for a triple-digit decline at the open
Dow Jones Industrial Average (DJI) futures are signaling a negative start to the session, as caution sets in following the U.S. airstrikes in Iran that killed top military leader Gen. Qasem Soleimani. Oil prices, on the other hand, are on the rise; February crude futures are up 3.5% to $63.34 per barrel, with major energy stocks set to outperform as a result. Still, stocks on the whole are set to pull back due to the rising geopolitical tensions, as futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also pacing for sharply lower opens.
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5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.33 million call contracts traded on Thursday, compared to 725,914 put contracts. The single-session equity put/call ratio slipped to 0.54, while the 21-day moving average was 0.56.
- Papa John's International, Inc. (NASDAQ:PZZA) and Domino's Pizza, Inc. (NYSE:DPZ) received bullish analyst attention this morning, with BTIG suggesting that 2020 will be a year more people stay in and order food to their homes. The brokerage firm believes political debates and the Olympics will keep consumers glued to their TVs.
- Apple Inc. (NASDAQ:AAPL) also received upbeat analyst attention this morning, with RBC saying an analysis of social media users shows increasing interest for the company's current-year iPhones. AAPL's price target there was raised to $330 from $295, which comes after the Dow component notched a record close of $300.35 on Thursday.
- In penny stock news, Novan Inc (NASDAQ:NOVN) shares are set for a massive collapse at the open, down more than 70% in pre-market trading. The biotech's skin infection gel failed to meet its goals in a late-stage trial, and the stock is now pacing to open below $1 per share.
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Today, the Institute for Supply Management (ISM) manufacturing index, construction spending, and motor vehicle sales data is due out.
Airline Stocks in Europe Take Deep Losses
Stocks in Asia were muted today, as investors unpacked escalating tensions between the U.S. and Iran. China's Shanghai Composite gave back 0.05%, while Hong Kong's Hang Seng lost 0.3%, despite big gains from oil stock PetroChina. South Korea's Kospi eked out a 0.06% win, while Japan's Nikkei remained closed for holiday.
Over in Europe, markets are reacting negatively to a U.S. airstrike that killed a top Iranian commander, with travel and leisure stocks taking the biggest hit. London's FTSE 100 is off by 0.3%, and the French CAC 40 is down 0.5%, at last check, with airliners IAG, EasyJet, and Lufthansa all staring at steep losses. The region's worst performer is the German DAX, though, down 1.7%.