All three U.S. benchmarks are notably higher
Equity futures on Wall Street are poised for a bounce on Tuesday, just after markets in the U.S. closed their fifth-straight day in the red, with the Dow Jones Industrial Average (DJI) and S&P 500 (SPX) both hitting two-year lows. Treasury yields came off their highs as well, helping mega-cap tech stocks get a boost today. Meanwhile, Chicago Federal Reserve President Charles Evans voiced concerns that the central bank is hiking interest rates too far, and too fast, saying the speed leaves little time to look at the impacts of each current hike.
Continue reading for more on today's market, including:
- Schaeffer's Senior V.P. of Research sees risks remaining for delta hedge selling.
- Record highs in sight for this semiconductor stock.
- Plus, Goldman Sachs upgrades KDP; and 2 EV stocks on the rise.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 977,782 call contracts and 784,739 put contracts traded on Monday. The single-session equity put/call ratio fell to 0.80, while the 21-day moving average stayed at 0.67.
- Goldman Sachs downgraded Keurig Dr Pepper Inc (NASDAQ:KDP) to "neutral" from "buy," after saying the beverage manufacturer's margins are risky amid elevated commodity inflation. Last seen 1.2% higher before the bell, KDP is set to cut into its slim 1.1% year-to-date lead.
- Cantor Fitzgerald, meanwhile, initiated coverage on electric vehicle (EV) player Lucid Group Inc (NASDAQ:LCID) with an "overweight" rating. The broker praised the efficiency, longer range, faster charging, and increased space relative to peers in Lucid's luxury and premium vehicles. In response, LCID was last seen 3.5% higher premarket, though it's coming into today with a 63% year-to-date deficit.
- Another EV name, Li Auto Inc (NASDAQ:LI) is 1.1% higher ahead of the open, despite the company cutting its third-quarter delivery guidance by 9%, or 2,500 vehicles, due to supply chain constraints. Longer-term, LI is clinging to a 1.1% year-over-year lead.
- Durable goods orders, core durable goods orders, the S&P Case Shiller U.S. home price index, the consumer confidence index, and new home sales data -- all of this data is due out today.
Foreign Markets Attempt to Rally
After a dismal week of trading, Asian markets scored much-needed gains on Tuesday. The Shanghai Composite in China led regional markets with a 1.4% pop thanks to strength in healthcare and education stocks. Elsewhere, the Nikkei in Japan tacked on 0.5%, the South Korean Kospi added 0.1%, and the Hong Kong Hang Seng inched 0.03% higher.
European markets are also seeing a bounce, with the U.K.’s monetary policy in focus amid a slumping pound. At last glance, the French CAC 40 is 0.8% higher, the German DAX is up 0.9%, and the London FTSE 100 has added 0.3%.