Futures on the Dow were last seen up over 130 points
Stocks are coming off their best week since June and looking to build on those gains ahead of the open Monday. Futures on the Dow Jones Industrial Average (DJI) were last seen up over 130 points as Treasury yields continue to cool. Meanwhile, S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures pointed toward premarket pops of their own. Investors are eyeing another batch of earnings this week, with Big Tech names, including Alphabet (GOOGL), Amazon.com (AMZN), Apple (AAPL), and Microsoft (MSFT) set to report.
Continue reading for more on today's market, including:
- Bank stock for dividend investors to consider.
- Railroad giant is a post-earnings success.
- Plus, weak GDP reading dents BABA; TSLA to lower prices; and WeWork scores fresh bullish coverage.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.78 million call contracts and 1.03 million put contracts traded on Friday. The single-session equity put/call ratio fell to 0.58, while the 21-day moving average stayed at 0.68.
- China's weaker-than-anticipated gross domestic product (GDP) reading is weighing on U.S. listed shares of Alibaba Group Holding Ltd (NYSE:BABA) and many of its sector peers. The security is down 11.2% ahead of the bell, dropping back below its 2014 initial public offering (IPO) price of $68, and adding to its roughly 40% year-to-date deficit.
- Tesla Inc (NASDAQ:TSLA) announced it is slashing its Model 3 and Model Y prices in China by as much as 9%, as demand in the region slows down. The stock is down 2.8% in the premarket, eating into Friday's 3.5% rebound off last week's post-earnings plummet.
- Cantor Fitzgerald initiated coverage of WeWork Inc (NYSE:WE) with an "overweight" rating, noting the $2.7 billion in expenses the company faced have been cleared amid cost cutting initiatives and real estate portfolio optimization. WE was last seen up 6.7% ahead of the open, though it's shed nearly 70% in the last six months.
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The Chicago Fed national activity index, the S&P U.S. manufacturing purchasing manager's index (PMI), and the S&P U.S. services PMI will be due out.
Hong Kong's Hang Seng Hits Lowest Level Since 2009
Stocks in Hong Kong and mainland China fell drastically today, with the former’s Hang Seng dipping 6.4% to its lowest level since April 2009. China’s Shanghai Composite shed 2%, as both indexes felt the effects of higher U.S. Treasury yields. In addition, loyalists to the country’s president Xi Jinping were tapped to form a core leadership group during the Communist Party of China’s 20th National Congress, while officials in the area once again delayed policy measures and furthered speculation about the country’s economic recovery. Elsewhere, South Korea’s Kospi and Japan’s Nikkei added 1% and 0.3%, respectively, the latter posting gains after the yen moved higher.
Meanwhile, European bourses were last seen higher amid political developments across the continent. The ruling Conservative Party in the U.K. will name Rishi Sunak as its new prime minister following the resignation of Liz Truss last week; French President Emmanuel Macron and Italy’s new Prime Minister Giorgia Meloni held their first meeting together; and Germany continues to contemplate a gas price strategy to combat a mounting energy crisis. At last glance, the FTSE 100 in London was 0.6% higher, as the U.K. 10-year gilt yields drop to one-month lows and former Finance Minister Rishi Sunak closes in on the prime minister position. Rounding out the region, France’s CAC 40 and Germany’s DAX were up 2% and 1.8%, respectively.