Stock Futures Point to Slow Start to Week
There doesn't seem to be any potential bullish catalysts today, either
Stock futures are trading below fair value this morning, with U.S. markets set to extend last week's weakness. Investors are continuing to monitor expectations for rising interest rates, and stocks in China sold off after the People's Bank of China (PBOC) cut the country's reserve requirement ratio. As such, the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) are all eyeing lower opens, and there's little on the economic calendar or earnings front to help give equities a boost.
Continue reading for more on today's market, including:
Analyst: This Casino stock is a "golden opportunity." Roku stock flashed a bullish signal. Plus, retailer keeps rising on M&A hopes; a surging oil stock; and GE shares get a vote of confidence.
5 Things You Need to Know Today
The Chicago Board Options Exchange (CBOE) saw 1 million call contracts traded on Friday, compared to 837,644 put contracts. The single-session equity put/call ratio moved up to 0.84 -- the highest since February -- and the 21-day moving average stayed at 0.60. Barnes & Noble, Inc. (NYSE:BKS) looks ready to add to last week's gains, up 3.6% in pre-market trading, thanks to a write-up in Barron's that argued the stock still has more upside. BKS shares rallied almost 22% last Thursday, after the bookseller confirmed it's been in talks with potential buyers. Brazil-based oil name Petroleo Brasileiro (NYSE:PBR) is set to add to its own rally, as well, gaining 14% before the open. Santander upgraded the stock to "buy" from "hold" and lifted its price target to $20 from $14, representing territory not seen in four years. Also helping the equity is the strong performance of pro-business candidate Jair Bolsonaro in the first round of presidential voting in Brazil. PBR shares have gained roughly 35% since a mid-June bottom near $9 that came shortly after the company's CEO resigned. Finally, General Electric Company (NYSE:GE) is another pre-market winner, after an upgrade to "overweight" from "neutral" at Barclays, which left its $16 price target in place but suggested the shares could rally to as high as $20. The covering analysts cited the potential for a new round of restructuring announcements following the company's CEO change last week. General Electric is set to open up 2.6%. There are no economic or earnings reports slated for release today.
Chinese Stocks Suffer Sharp Losses
Stocks in Asia saw steep declines today, most notably China's Shanghai Composite, which reopened from a week-long holiday with a 3.7% plunge after the PBOC cut the country's reserve requirement ratio by 100 basis points on Sunday. Meanwhile, Hong Kong's Hang Seng suffered a 1.4% loss, and South Korea's Kospi shed 0.6%. Markets in Japan were closed for holiday.
European markets are trading in the red at midday, as worries over a budget disagreement between the European Union and Rome weigh on Italian banks. Sinking crude oil prices and a weaker-than-expected reading on German industrial output are also in focus. At last check, London's FTSE is 0.5% lower, while Germany's DAX and France's CAC 40 are both down 0.8%.