Dow Jones Industrial Average (DJIA) futures are pointed lower this morning, despite a big earnings beat from component stock Home Depot (HD). In economic news, the producer price index (PPI) rose 0.4% in October and 2.8% year-over-year, surpassing consensus estimates. This inflation data will be at the forefront of investors’ minds as Fed Chief Janet Yellen joins a number of her global counterparts at the European Central Bank (ECB) conference in Frankfurt, Germany.
Markets will also be eyeing President Trump’s imminent return from his tour of Asia — which he wrapped up a bit earlier than planned, with Secretary of State Rex Tillerson standing in for Trump at today’s East Asia Summit. Trump, who has indicated his trip yielded “at least $300 billion” in trade deals, has promised a “major announcement” on his return to the White House.
Continue reading for more on today’s market, including:
- Why you don’t need to worry about “bad breadth,” per Schaeffer’s Senior Equity Analyst Joe Bell, CMT.
- Target stock is staring up at this key technical level.
- The drug stock that scored a big licensing deal with Johnson & Johnson.
- Plus, Switch’s disappointing first earnings; Advance Auto Parts scores crucial win; and Coca-Cola gets an upgrade.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 920,230 call contracts traded on Monday, compared to 632,128 put contracts. The single-session equity put/call ratio rose to 0.69, and the 21-day moving average rose to 0.65.
- Switch, Inc (NASDAQ:SWCH) is down 8.1% in electronic trading, after issuing lackluster full-year revenue guidance. The tech stock made a big debut as the second largest initial public offering (IPO) of the year last month, but its Oct. 6 IPO day closing price of $20.84 so far remains its all-time closing high.
- Advance Auto Parts, Inc. (NYSE:AAP) is up 15.9% ahead of the bell, after reporting third-quarter earnings that exceeded Wall Street’s expectations. AAP stock fell to a four-year low of $78.81 on Nov. 8, and today’s post-earnings rally will have the shares attempting to breakout above multiple layers of trendline resistance — including the 20-day, 50-day, and 80-day moving averages.
- The Coca-Cola Co (NYSE:KO) is up 0.2% before the bell, after receiving an upgrade from Wells Fargo this morning to “market outperform” from “market perform.” In a note to clients, the brokerage firm said Wall Street is underestimating the beverage stock’s potential upside. KO stock has added nearly 13% this year, and touched an all-time high of $46.98 on Sept. 13.
- Chicago Fed President Charles Evans and St. Louis Fed President James Bullard are due to speak today. Beazer Homes (BZH), Celsion (CLSN), Cheniere Energy (LNG), Dick’s Sporting Goods (DKS), JinkoSolar (JKS), Stratasys (SSYS), and TJX Companies (TJX) will step into the earnings confessional.
A disappointing round of Chinese economic data weighted on Asian stocks today. Specifically, year-to-date fixed asset investment, and retail sales and industrial output for October all came in below expectations, while housing sales last month slowed on a year-over-year basis. Against this backdrop, China’s Shanghai Composite tallied the heftiest loss of 0.5%, while South Korea’s Kospi shed 0.2% as tourism stocks fell, Hong Kong’s Hang Seng gave back 0.1%, and Japan’s Nikkei ended fractionally lower.
European stocks are mostly lower at midday, as traders digest speeches from a number of global central bank leaders at today’s ECB conference, including one from ECB President Mario Draghi. Among specific sectors, mining shares are on the decline following disappointing data out of China, though upbeat earnings from Simcorp are boosting tech stocks. At last check, the French CAC 40 was down 0.4%, while the German DAX was off 0.2% — even as the country’s third-quarter gross domestic product (GDP) arrived above estimates and the ZEW economic sentiment indicator edged up, though it did fall short of expectations. On the flip side, London’s FTSE 100 has added 0.1%, as shares of Tesco rally on a regulatory win in the grocer’s potential merger with Booker Group.