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Stock Futures Edge Lower as Tech Rotation Resumes

A possible semiconductor selloff is weighing on Wall Street this morning

Digital Content Manager
Jul 17, 2024 at 9:12 AM
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Investors are switching back into rotation mode after yesterday's record session, taking tech profits from Apple (AAPL) and Nvidia (NVDA) amid reports that the Biden administration will tighten trade restrictions on the chip industry due to China concerns. In response, the VanEck Semiconductor ETF (SMH) is staring down a nearly 4% drop today. Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) futures are all pointed lower at last check. The only bright side this morning: New constructions came in above analysts' expectations.

Continue reading for more on today's market, including: 

  • Senior Quantitative Analyst Rocky White on the context of the RUT outperformance.
  • United Airlines stock soared before earnings.
  • Plus, US Bank earnings; JNJ's dismal outlook; and Five Below CEO departs.

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.7 million call contracts and 852,346 put contracts traded on Tuesday. The single-session equity put/call dropped to 0.49, while the 21-day moving average stayed at 0.66.
  2. US Bancorp (NYSE:USB) reported better-than-expected second-quarter earnings and revenue this morning. USB shares are up 1.1% in premarket trading trading, and already sport a 22.8% year-over-year lead.
  3. The shares of Johnson & Johnson (NYSE:JNJ) are up 0.6% ahead of the open, brushing off the pharmaceutical giant's lackluster full-year earnings outlook. JNJ has shed 5.5% in the past 12 months.
  4. Discount retailer Five Below Inc (NASDAQ:FIVE) announced CEO Joel Anderson is leaving the company, and cut its second-quarter guidance. FIVE is down 13.3% before the bell, looking to add to its 52.1% year-to-date deficit.
  5. Earnings season and economic data to monitor the rest of the week.

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European, Asian Markets React to Economic Data

Asian markets finished mostly lower on Wednesday, as Hong Kong’s Hang Seng was the only winner with a slim 0.06% gain. China’s Shanghai Composite and the South Korean Kospi fell 0.5% and 0.8%, respectively, while Japan’s Nikkei dropped 0.4% after the Reuters Tankan survey showed an increase in business optimism among manufacturers, but a decline in confidence among non-manufacturers. Further, it’s likely that Japanese authorities intervened in the currency market late last week, spending 6 trillion yen ($37.9 billion) on Thursday and Friday according to Reuters.

Over in Europe, U.K. inflation held steady at 2% in June, though slightly above estimates of 1.9%. London’s FTSE 100 is down 0.06% at last glance, while the French CAC 40 sheds 0.5%, and the German DAX loses 0.6%.

 
 

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