ADP payroll data whiffed on its August expectations
Stock futures are poised for a strong open on Wednesday, with Wall Street still building off of yesterday's record closes. The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are firmly above fair value, while continued strength in the tech sector has the Nasdaq-100 Index (NDX) set for a solid boost, too. There's optimism after a Bloomberg report indicated Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi have restarted fresh stimulus talks on Capitol Hill. This is likely overshadowing Automatic Data Processing (ADP) payroll data that showed private-sector job creation in August missed expectations.
Continue reading for more on today's market, including:
- Wendy's stock pulled back to a historically bullish trendline.
-
Schaeffer's Senior Quantitative Analyst Rocky White assesses the
Dow shakeup.
- Plus, Macy's online sales see surprising surge; Walmart unveils new membership service; and Michael Jordan joins DraftKings' board.
5 Things You Need to Know Today
- The Cboe Options Exchange
(CBOE) saw over 1,751,527 million call contracts traded on Tuesday, and 705,054 put
contracts. The single-session equity put/call ratio rose to 0.4, and the
21-day moving average stayed at 0.44.
- Macy's Inc (NYSE: M) is up 5% in pre-market trading, after the company reported smaller-than expected second-quarter losses due to a 53% increase in digital sales, even as stores reopened across the country. However, overall sales are still down 35.1% over the past 12 months. Year-to-date, the security sports a 58.8% deficit.
- Walmart Inc (NYSE: WMT) is up 2.2% before the bell, after the major retailer announced a membership service that is being touted as Amazon (AMZN) Prime's rival. Walmart is set to launch this service, called Walmart+, on Sept. 15.
- DraftKings Inc (NASDAQ:DKNG) is up 13.4% in electronic trading, after NBA legend and Charlotte Hornets owner Michael Jordan joined the company’s board as a special advisor. DKNG is down 10.5% in the last three months, but support has stepped up from its 80-day moving average. Year-to-date, the sports gambling company is up 245%.
- Investors are eyeing the Beige book and factory orders today. Reports from Crowdstrike (CRWD), Five Below (FIVE), Navistar (NAV), and PVH (PVH) are also rolling in.
Asian Markets Mixed as Australia Enters Recession
Stocks in Asia were mixed today, after Australia’s gross domestic product (GDP) fell 7% -- its largest quarterly fall on record – and data showed the country has officially entered a recession. Meanwhile, South Korea’s Kospi paced the region with a 0.6% win, followed closely by a 0.5% gain from Japan’s Nikkei. Regarding mainland stocks, Hong Kong’s Hang Seng fell 0.3%, while China’s Shanghai Composite lost 0.4%.
Yesterday’s outsized gains in the U.S. have European markets sharply higher this morning, brushing off euro zone data that showed August core inflation falling to its lowest reading since 2001. The French CAC 40 and German DAX are both up 2.3% at last check, despite the latter’s retail sales falling unexpectantly. Rounding out the region, London’s FTSE 100 is up 1.7%.