The 10-year Treasury yield is cooling off, though
Fresh off yesterday's dramatic late-afternoon pivot, futures on the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) are all once more indicating a move into the red. Today's weakness stems from the tech sector, where FAANG name Netflix (NFLX) gaps lower in premarket after earnings showed a slowdown in subscriber growth.
The 10-year Treasury yield is taking a breather this morning, last seen around 1.77%. Elsewhere, U.S. and Russia diplomats will meet later today in an attempt to bridge the impasse and ease tensions over the latter's perceived imminent invasion of Ukraine.
Continue reading for more on today's market, including:
- Why Chinese tech stocks have been soaring.
- Netflix has an ugly history of post-earnings bear gaps.
- Plus, oil stock set to cool off; Peloton's wild ride; and a logistics company dinged by higher expenses.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.7 million call contracts traded on Thursday, and 1 million put contracts. The single-session equity put/call ratio rose to 0.62, and the 21-day moving average stayed at 0.50.
- Schlumberger (NYSE:SLB) stock is down 3.4% in electronic trading, even though the oil services company reported a top-line beat for the fourth quarter. SLB was initially higher premarket, but now is poised to eat into the stock's 23.7% year-to-date gain.
- Peloton Interactive Inc (NASDAQ:PTON) stock is 5.5% higher before the open, set to bounce back after yesterday's 24% bear gap. The selloff was triggered by a CNBC report that indicated the exercise bike company was considering a production pause amid shrinking demand. This morning, nine brokerages have trimmed their price targets, the lowest coming from BMO to $24 from $45.
- The shares of CSX Corporation (NASDAQ:CSX) are 2.8% lower ahead of the bell, despite the logistics company reporting narrow earnings and revenue beats. A surge in expenses is instead weighing on CSX, which is down 6.3% in 2022 already.
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Overseas Markets Tumble Alongside Wall Street
Asian markets were mostly lower on Friday, mirroring Wall Street’s overnight losses. Investors were also digesting fresh economic data out of Japan, which showed inflation growing at a faster-than-usual clip in December, due to higher fuel and material costs. Pacing the laggards was South Korea’s Kospi with a 1% drop, while China’s Shanghai Composite and Japan’s Nikkei both fell 0.9%, as tech and automotive stocks weighed on the latter. Elsewhere, Hong Kong’s Hang Seng closed slightly above breakeven with a 0.05% gain.
European stocks are also lower, as investors considered Wall Street’s tumble. They were also digesting Britain’s GfK Consumer Confidence Index, which came in at its lowest reading since February 2021, as higher inflation and potential interest rate hikes weighed on sentiment. Retail sales data for the United Kingdom also disappointed, with a wider-than-expected drop for December. At last check, the German DAX is down 2.1%, France’s CAC 40 is 1.8% lower, and London’s FTSE 100 carries a 1.2% deficit.