Dow Jones futures are more than 300 points lower
Stock futures are tumbling into the final session of an already shaky week, with Dow Jones Industrial Average (DJIA) futures last seen off by roughly 318 points. Transport stocks, usually seen as a leading economic indicator, are weighing on the major indexes, after FedEx (FDX) cut its full-year guidance on lower volumes thanks to a "significantly worsened" global economy. Meanwhile, S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also pointing toward an open in the red.
Continue reading for more on today's market, including:
- Blue-chip stock flashing a historically bullish signal.
- Why this video game stock could soon soar higher.
- Plus, more on FedEx's dire warning; AstraZeneca receives EU approval; and Alcoa Stock nabs bull note.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.32 million call contracts traded on Thursday, and 961,441 put contracts. The single-session equity put/call ratio fell to 0.73, while the 21-day moving average stayed at 0.66.
- Declining global package delivery volumes led FedEx Corporation (NYSE:FDX) to issue a dire profit warning, withdrawing its full-year guidance and implementing cost-cutting initiatives to combat soft global shipment volumes. In response, FDX was last seen down 20.1% premarket, adding to an already hefty 20.8% year-to-date deficit. The news is impacting the entire sector, with United Parcel Service (UPS) and XPO Logistics (XPO) sporting premarket losses of 6.5% and 5.4%, respectively.
- AstraZeneca plc (NASDAQ:AZN) sports a 1.5% lead before the bell, after the company's Covid-19 antibody cocktail was approved by European regulators. Today's price action should help AZN overcome its slim 0.2% year-to-date deficit.
- Aluminum producer Alcoa Corp (NYSE:AA) is up 1% ahead of the open, following a bull note from Morgan Stanley. The firm upgraded AA to "overweight," noting strong balance sheets, cheap valuations, and "deep value," despite overall cautious sentiment toward the mining sector. In 2022, Alcoa stock sports losses of 27.6%.
- To close the week out, Wall Street will digest the University of Michigan's consumer sentiment index and 5-year consumer inflation expectations are due out today.
Overseas Markets Flounder Under Recession Fears
Asian markets were sharply lower on Friday, mirroring their stateside counterparts as inflation fears gripped Wall Street. Investors brushed off upbeat economic data out of China, with retail sales rising a better-than-expected 5.4% in August, while industrial production growth of 4.2% also beat estimates. Pacing the laggards was China’s Shanghai Composite with a 2.3% slide, followed by Japan’s Nikkei’s 1.1% loss. Meanwhile, Hong Kong’s Hang Seng and South Korea’s Kospi shed 0.9% and 0.8%, respectively.
European stocks are also lower, after the World Bank noted the risk of global recession in 2023 is rising despite interest rate hikes. The expectation for more rate hikes, plus the ongoing energy crisis, is dampening investor spirit. In other news, U.K. retail sales fell 1.6% in August, and the British pound earlier hit its lowest level since 1985. At last check, the German DAX is 1.5% lower, France’s CAC 40 is down 1.1%, and London’s FTSE 100 is flat.