Equity Futures Point Lower Despite Bullish Earnings Season

Dow Futures See Triple Digit Drop

Stock futures are lower this morning and expected to expand yesterday’s losses after the main benchmarks have succumbed to profit taking. Dow Jones Industrial Average (DJI) futures contracts forecast a drop of 139 points. Likewise, futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also considering a modest change in the red, with Big Tech set to struggle again. On the flip side, the first quarter earnings season has been upbeat so far, with financials beating estimates by 38%, while S&P 500 earnings are up 12%, according to Credit Suisse.

Read on to learn more about the current market, including:

  • Schaeffer’s Senior Vice President of Research Todd Salamone warns of the long term technical models.
  • Netflix action was stable prior to today’s quarterly report.
  • In addition, Lockheed Martin shares fall when there is a shortfall; tobacco stock collapses following rumors of nicotine reduction; and Procter & Gamble displays the best beat.

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5 things you need to know today

  1. the Cboe Options Exchange (CBOE) saw over 1.6 million call contracts traded on Monday, and 750 046 put contracts. Single session sell / call ratio increased to 0.45 and the 21-day moving average remained at 0.46.
  2. Lockheed Martin Corporation (NYSE: LMT) is down 1.2% before the bell, after the defense giant posted better-than-expected quarterly results but lower than expected revenue. In addition, the company has raised its forecast for the full year for metrics such as sales and cash from operations. LMT is up 10% in 2021 before today.
  3. Cigarette problem British American Tobacco PLC (NYSE: BTI) is down 3.1% before the opening. The negative price action came after The Wall Street Journal reported that the White House may demand that nicotine levels be reduced in all cigarettes.
  4. Actions of Procter & Gamble Co (NYSE: PG) are down 0.5% in e-commerce, despite the consumer products icon posting quarterly profit and beaten revenue. Procter & Gamble attributed the good results to continued demand for cleaning products and added that it will increase the prices of several products in September.
  5. The Case-Shiller House Price Index and consumer confidence index should be released today.

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European markets dip as investors watch their earnings

Stocks in Asia were mixed during today’s session. South Korean Kospi led the winners with a 0.7% pop, while Hong Kong’s Hang Seng lagged behind with a 0.1% gain. Elsewhere, China’s Shanghai Composite fell 0.1%, after news was released that the country kept the one-year loan prime rate and five-year LPR at 3.85% and 4, 65%, respectively. Finally, the Japanese Nikkei fell 2%, amid an increase in Covid-19 cases.

In Europe, equities are struggling to improve today as investors watch earnings. London’s FTSE 100 is down 1.1% at last check, as the tobacco industry grapples with potential nicotine restrictions in the United States by the Biden administration. Meanwhile, the French CAC 40 fell 1.5% and the German DAX lost 0.9%.


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About Robert Valdivia

Robert Valdivia

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