EARN25

Stock Futures Muted Amid Cooling Earnings Optimism

Investors are brushing off upbeat earnings reports from Target and Lowe's

Digital Content Manager
Nov 17, 2021 at 9:21 AM
facebook X logo linkedin


Stock futures are muted this morning, brushing off upbeat earnings reports from major retailers Target (TGT) and Lowe's (LOW). Dow Jones Industrial Average (DJI) futures are pointed 51 points lower, despite blue-chip aerospace concern Boeing (BA) receiving a $9 billion order for its 737 MAX. Meanwhile, futures on the S&P 500 (SPX) and Nasdaq-100 (NDX) are flat, as investor optimism cools ahead of today's batch of earnings reports, which includes chipmaker Nvidia (NVDA) and Bath & Body Works (BBWI).

Continue reading for more on today's market, including:

  • Schaeffer's Senior Quantitative Analyst Rocky White says to play these stocks right now.
  • Crowdstrike stock could bounce off this long-term bull signal.
  • Plus, unpacking Target's earnings report; Roku downgraded; and why this Chinese tech name is higher.

futuresovnov17

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2 million call contracts traded on Tuesday, compared to 912,357 put contracts. The single-session equity put/call ratio rose to 0.44, and the 21-day moving average stayed at 0.47.
  2. The shares of Target Corporation (NYSE:TGT) are down 3.6% ahead of the open, despite the retail name reporting a blowout third-quarter earnings and revenue beat. The company attributed the strong results to a better-than-expected 12.7% jump in comparable store sales, but warned of rising costs due to supply chain issues and compensation. Year-to-date, TGT sports a 50.9% lead.
  3. Streaming concern Roku Inc (NASDAQ:ROKU) is down 3.3% in electronic trading, after Moffett Nathanson downgraded the stock to "sell" from "neutral." The analyst in coverage said the company is displaying signs of slowing revenue growth. ROKU has shed 16.7% in 2021.
  4. Baidu Inc (NASDAQ:BIDU) is up 1.3% before the bell, after the Chinese tech concern reported better-than-expected third-quarter earnings as well as revenue. The company benefitted from stronger ad sales, in addition to demand for its cloud and artificial intelligence products. However, BIDU remains down 20.8% this year.
  5. Today features brings building permits and housing starts data.
buzznov17

European Markets Muted on Euro Zone Inflation Data

Asian markets were mostly lower on Wednesday, led by South Korea’s Kospi, which shed 1.2%. In Japan, the Nikkei lost 0.4%, after data revealed exports rose 9.4% in October -- the weakest growth since February. Hong Kong’s Hang Seng shed 0.3%, while China’s Shanghai Composite escaped the day with a 0.4% pop, as investors awaited tech giant Baidu’s third-quarter earnings report.

Stocks across the pond are muted this afternoon, as European traders digest inflation readings from the euro zone. Inflation was confirmed at 4.2% year-over-year in October, which was double the target set by the European Central Bank (ECB), while the U.K. consumer price index (CPI) inflation flashed at an annual 4.1% -- its highest level in nearly a decade. The ECB, in its biannual stability report, sounded the alarms concerning stretched valuations in property and financial sectors. At last check, London’s FTSE was 0.3% lower, France’s CAC 40 was off 0.01%, and the German DAX was up 0.09%.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!