The Dow is poised for a triple-digit drop this morning
Futures on the Dow Jones Industrial Average (DJI) are down roughly 130 points this morning, as investors look to walk away with some big gains after a record-breaking November. Meanwhile, futures on the S&P 500 Index (SPX) are marginally lower, while futures on the Nasdaq-100 Index (NDX) are slightly above fair value.
Some of this pullback comes amid news that the Trump administration may limit Chinese chipmaker SMIC's access to American investors. Offshore oil and gas producer CNOOC is also on the chopping block. Elsewhere, Moderna (MRNA) announced it would be applying for emergency use authorization of its COVID-19 vaccine later today, keeping some of these losses in check. As it stands, all three major indexes are poised for monthly gains, with the Dow set to score its best month since 1987.
Continue reading for more on today's market, including:
- Amazon stock popped after announcing $500 million in holiday bonuses.
- The social media stock surging amid new cryptocurrency buzz.
- Plus, Slack drops on Barclays bear note; airline stock surges following upgrade; and IHS Markit climbs amid acquisition news.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts traded on Friday, and 604,464 put contracts. The single-session equity put/call ratio rose to 0.41 and the 21-day moving average dropped to 0.45.
- Slack Technologies Inc (NYSE:WORK) is down 2% in pre-market trading, after the instant messaging stock received a downgrade from Barclays to "equal weight" from "overweight." The analyst in question cited a potential Salesforce (CRM) acquisition, which would limit upside. Year-to-date, WORK remains up an impressive 80.9%.
-
United Airlines Holdings Inc (NASDAQ:UAL) is up 1.2% before the bell, after receiving an upgrade to "outperform" from "market perform" at Raymond James. The analyst noted the different approach the airline is taking, which could lead to gains when the economy bounces back from the pandemic. Year-over-year, UAL is down 51.3%.
- The shares of IHS Markit Ltd (NYSE:INFO) are up 6.9% in electronic trading, after news came out that S&P Global (SPGI) agreed to buy the company for $44 billion, with the deal expected to close in the second half of 2021. This constitutes the largest corporate deal of 2020 so far. Year-over-year, INFO is already up 27%.
- The week starts with the Chicago purchasing managers index (PMI) and pending home sales data.
Asian Markets Drop on Chinese Manufacturing Data
Asian markets fell to begin the week, following the release of manufacturing data out of China. More specifically, the country’s Shanghai Composite fell 0.5%, despite official manufacturing Purchasing Managers’ Index (PMI) coming in at 52.1 for November, above analysts’ expectations of 51.5. Meanwhile, Japan’s Nikkei fell 0.8%, despite retail sales jumping 6.4% year-on-year in October. Rounding out the region, South Korea’s Kospi and Hong Kong’s Hang Seng fell 1.6% and 2.1%, respectively.
Stocks in Europe are mixed this afternoon, as investors regroup following the recent upbeat vaccine news. Elsewhere, the talks between the U.K. and European Union (EU) are reportedly “very significant,” as the two sides attempt to hammer out a post-Brexit trading relationship. The German DAX has so far added 0.6%, while London’s FTSE was last seen up 0.1%. Meanwhile, France’s CAC 40 has shed 0.2% already today.