Stock Futures Slip After Dow Hits Record High

Why are investors cycling out of the tech sector?

Jake Scott

Deputy Editor

Aug 27, 2024 at 9:00 AM

Futures tied to the Dow Jones Industrial Average (DJIA) are lower Tuesday, one session removed from all-time highs, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures sport more modest losses. Investors look to be continuing their rotation out of high-flying tech names in favor of less desirable sectors, just ahead of a highly-anticipated earnings report from arguably the most important name of the year, Nvidia (NVDA), due out after tomorrow's close.

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

Options traders flock to Big Tech chip stock.
Commerce giant suffering after earnings.
Plus, Hershey stock downgraded; JD.Com announces stock buyback; and CAVA's post-earnings tumble.

5 Things You Need to Know Today

The Cboe Options Exchange (CBOE) saw 1.1 million call contracts and 635,072 put contracts exchanged on Monday. The single-session equity put/call ratio rose to 0.57 and the 21-day moving average fell to 0.65.
Citing higher-than-usual cocoa prices and volume challenges that could potentially weigh on earnings, Citi downgraded chocolate maker Hershey Co (NYSE:HSY) to "sell" from "neutral." Down 1.8% before the bell, HSY is on track to shed some of its already slim 5.4% year-to-date lead.
JD.Com Inc (NASDAQ:JD) is roughly 3% higher premarket, and looking to cut into its 9.6% year-to-date deficit. This move comes after the China-based online retailer announced a $5 billion share repurchase program that will run between September 2024 and August 2027.
CAVA Group Inc (NYSE:CAVA) is set to open 9% lower after CEO Brent Schulman, several key executive and directors, and major shareholder revealed their intentions to sells shares following the restaurant stock's post-earnings spike to record highs. Coming into today, CAVA was up more than 202% over the last 12 months.
Stay up-to-date with the latest earnings and economic schedule.

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Germany's GDP Reading Matches Expectations

Asian markets were mixed on Tuesday, as investors unpacked China’s better-than-expected year-over-year industrial profits from January to July. Conflict in the Middle East and rising oil prices were also in focus. Japan’s Nikkei added 0.5%, while Hong Kong’s Hang Seng rose 0.4%. Elsewhere, South Korea’s Kospi and China’s Shanghai Composite shed 0.3% and 0.2%, respectively.

European markets are higher thanks to strength in the automotive and mining sectors. In other news, Germany’s final second-quarter gross domestic product (GDP) reading was in line with expectations, and the British Retail Consortium said U.K. shop prices for August slipped into deflation for the first time in about three years. The German DAX was last seen 0.4% higher, France’s CAC 40 sports a 0.3% lead, and London’s FTSE 100 is up 0.09%.

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