The Dow is eyeing its worst weekly drop since June 2022
Futures on the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) are rebounding Friday, as Wall Street looks to recover from a steep selloff that dragged the S&P 500 into correction territory. Sentiment got a boost after Senate Minority Leader Chuck Schumer signaled he would not block a Republican government funding bill, helping ease shutdown concerns.
The broader market remains under pressure, with the Nasdaq now down more than 10% for the year, and all three major indexes on track for weekly losses -- the Dow's worst since June 2022, and the S&P 500 and Nasdaq’s fourth straight negative week. Investors are also preparing for this morning’s consumer sentiment report, as well as next week’s Federal Reserve policy meeting, with CME's FedWatch tool widely expecting rates to remain unchanged.
Continue reading for more on today's market, including:
- Why options traders love this Big Tech stock.
- The ins and outs of day trading.
- Plus, CMG upgraded; Li Auto's profit and deliveries; and ULTA's post-earnings pop.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.1 million call contracts and 2 million put contracts exchanged on Thursday. The single-session equity put/call ratio rose to 0.94, while the 21-day moving average stayed at 0.60.
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Chipotle Mexican Grill, Inc. (NYSE:CMG) stock was last seen 2.4% higher before the bell, after Loop Capital upgraded the shares to "buy" from "hold," citing its recent pullback as an attractive buying opportunity. The firm also noted that Chipotle could be a strong play for managing tariff-related risks tied to President Donald Trump’s policies. Over the last nine months,
CMG has shed 25.4%.
- Li Auto Inc (NASDAQ:LI) stock is 4% lower premarket at last glance, after reporting a decline in fourth-quarter net profit. Despite deliveries rising 20% in its latest quarter, the impact of price cuts weighed on overall revenue, leading to a sharp pullback in the U.S.-listed shares of the Chinese electric vehicle (EV) maker. However, LI still boasts a 19.7% year-to-date lead.
- Ulta Beauty Inc (NASDAQ:ULTA) stock is up 7% ahead of the open, after strong fourth-quarter earnings, with earnings per share of $8.46 topping the $7.12 consensus estimate. Revenue also exceeded expectations at $3.49 billion versus the anticipated $3.46 billion. However, the company issued weak full-year guidance, which could temper some of today's gains. Over the last 12 months, ULTA is off by 44.6%.
- Will the Federal Reserve cut interest rates next week?
Overseas Markets Bounce Back to Close Week
Asian stocks bounced back, with Hong Kong’s Hang Seng leading the charge, gaining 2.1%, as automaker BYD surged. China’s Shanghai Composite popped 1.8% and Japan’s Nikkei gained 0.7%, while the Kospi in South Korea sat out the gains, shedding 0.3% despite outsized moves higher from small caps.
In Europe, it’s more of the same, with overseas markets for one day at least brushing off Trump’s tariff threats. London’s FTSE 100 is up 0.7%, even after the U.K. economy shrank by 0.1% month-over-month, an unexpected drop. The French CAC 40 is 1.3% higher and the German DAX was last seen up 2.1%, the latter shrugging off a lackluster post-earnings reaction from BMW.