Rising Treasury yields led to bouts of profit-taking
Stock futures are mixed this morning, after a rise in Treasury yields sparked a tech sell-off. Dow Jones Industrial Average (DJI) futures are eyeing modest gains, while futures on the S&P 500 (SPX) sit at breakeven and on the Nasdaq-100 (NDX), are pointed lower. Boosting investor sentiment today is news that U.S. President Joe Biden will tap into oil reserves to lower gas prices, as inflations runs at a 30-year high. Traders are also eyeing earnings from Dell Technologies (DELL) and Gap (GPS), which are due out after today’s close.
Continue reading for more on today’s market, including:
- Bears frustrated as SPX continues to avoid setbacks.
- Options bulls are doubling down on this cannabis stock.
- Plus, Dick’s Sporting Goods brushes off earnings beat; Best Buy predicts dismal holiday season; and return to the office haunts Zoom.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.6 million call contracts traded on Monday, compared to 1 million put contracts. The single-session equity put/call ratio fell to 0.40, and the 21-day moving average stayed at 0.47.
Dick’s Sporting Goods Inc (NYSE:DKS) is down 2.1% this morning, brushing off a third-quarter earnings and revenue beat. The sporting goods retailer also reported a better-than-expected comparable-store sales jump of 12.2%. Year-to-date, DKS is up 160.2%.
- Best Buy Co Inc (NYSE:BBY) is down 11.3% in electronic trading, after forecasting worse-than-expected comparable sales for the holiday season. The company said a possible product shortage is to blame, but still posted a third-quarter earnings and revenue win. BBBY has added 38.3% in 2021.
Zoom Video Communications Inc (NASDAQ:ZM) was last seen down 9% before the bell. Today’s drop comes after the company noted sales growth is slowing down as workers return to the office. Still, the Zoom beat top- and bottom-line estimates for the third quarter, and raised its full-year guidance. Year-over-year, though, ZM remains down 44.9%.
Both the Markit manufacturing and services purchasing managers’ indexes (PMI) are due out today.
European Markets Drop as Covid-19 Infections Rise
Asian stocks were mostly lower on Tuesday, as investors digested Biden’s announcement that he is nominating Jerome Powell for his second four-year term as Federal Reserve chair. Meanwhile, tech stocks in the region took a step back, following in the footsteps of their overseas counterparts. South Korea’s Kospi shed 0.5%, after sector giants LG Electronics and Kakao both pulled back more than 3%. Hong Kong’s Hang Seng lost 1.2%, while China’s Shanghai Composite added 0.2%, and Japan’s Nikkei was closed for a holiday.
The major bourses in Europe are also mostly lower this afternoon, as markets monitor a spike in Covid-19 cases in the region, as well as a new purchasing manager’s index (PMI) reading for the euro zone. While IHS Markit’s flash composite PMI blew past economists’ estimates, climbing to 55.8, optimism was kept in check after the business expectations index fell to its lowest reading since February. Investors are also reacting to Powell’s nomination, with bets that the U.S. will hike interest rates in 2022. At last check, London’s FTSE 100 is up a paltry 0.07%, France’s CAC 40 is down 0.2%, and the German DAX has shed 0.6%.