Stock futures are pointed lower ahead of debt ceiling talks
Following its fifth daily loss in the last six sessions, Dow Jones Industrial Average (DJIA) futures are pointed lower once again, down 68 points ahead of the open. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are firmly lower as well, as investors pore over corporate earnings and await tomorrow's highly anticipated inflation data. U.S. President Joe Biden and House Speaker Kevin McCarthy will meet today to negotiate an increase to the debt ceiling.
Continue reading for more on today's market, including:
- Schaeffer's Senior V.P. of Research Todd Salamone points out a key SPX trendline.
- Why options traders targeted soaring Zscaler stock.
- Plus, 3 stocks moving after earnings.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.2 million call contracts and 951,333 put contracts exchanged on Monday. The single-session equity put/call ratio rose to 0.73 and the 21-day moving average stayed at 0.76.
- Plug Power Inc (NASDAQ:PLUG) is down 8.5% premarket, after the company reported a wider-than-expected first-quarter loss, but better-than-expected revenue. Truist Securities cut its price target to $11 from $16 after the event. Year-to-date, the equity is down 24.9%.
- Electric vehicle (EV) maker Lucid Group Inc (NASDAQ:LCID) is down 10.4% before the bell, after disappointing first-quarter results. Plus, Needham threw in a price-target cut to $10 from $16. Should these losses hold, the stock will move back toward its January lows.
- At least one stock is doing well after earnings. Palantir Technologies Inc (NYSE:PLTR) is up 16.2% in electronic trading, after the company shared an upbeat first-quarter result and full-year forecast on strong demand for Artificial Intelligence (AI). No fewer than two analysts lifted their price targets. Year-to-date, the equity is up 20.5%.
- There is no economic data of note today.
Stocks Mostly Lower in Asia, Europe
Markets in Asia closed Tuesday mostly lower, after China’s trade data included a 1.4% decline in imports and slowed export growth. Hong Kong’s Hang Seng led losses in the region with a 2.1% dip, while China’s Shanghai Composite fell 1.1%. Meanwhile, South Korea’s Kospi fell 0.1%. In Japan, the Nikkei bucked the gloomy broader-market sentiment, rising 1% despite a surprise decline in household spending.
European stocks are lower this afternoon, as investors in the region await stateside inflation data. At last check, France’s CAC 40 is off by 1.1%, London’s FTSE 100 is 0.5% lower, and the German DAX is down 0.4%.