Stock futures fall as investors brace for earnings season

Earnings season kicks off this week

Fresh out of a strong weekly winstock futures are down on Monday as Wall Street prepares for the start of earnings season. Dow Jones Industrial Average (DJIA) futures are off by around 200 points as a series of highly anticipated corporate earnings reports due out later this week could reveal clues about the health of the economy. Elsewhere, futures contracts on the Nasdaq-100 Index (NDX) and the S&P 500 Index (SPX) are also in the red, as many continue to speculate that the US Federal Reserve will maintain its hawkish approach to fighting inflation.

Keep reading to learn more about the current market, including:

  • Why value traders should keep an eye on this technical problem.
  • Is it cannabis stock assessment still too high?
  • Additionally, Musk will end the Twitter takeover; the toymaker lands a bull rating; and Covid-19 weighs on game stocks again.

July 11 futures chart

5 things you need to know today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million buy contracts and 734,512 sell contracts traded on Friday. The single-session sell-to-buy ratio fell to 0.56 and the 21-day moving average remained at 0.65.
  2. Twitter Inc. (NYSE: TWTR) slips before the opening bell, after Tesla (TSLA) CEO Elon Musk formally announced he was pulling out of his $44 billion takeover deal. In response, Twitter said it would take legal action against Musk. The TWTR was last seen down 6% and the sports deficit down 14.8% year-to-date.
  3. Goldman Sachs has modernized the toymaker Mattel Inc (NASDAQ:MAT) to “buy” from “neutral,” helping stocks add 3.2% in e-commerce. The brokerage believes the company should benefit from demand stemming from new TV and movie releases. From one year to the next, MAT shows a lead of more than 12%.
  4. Macau, a Chinese gambling enclave, is set to begin a week-long shutdown amid a surge of Covid-19 infections. The news weighs on gaming stocks with operations in the region including Wynn Resorts, Limited (NASDAQ: WYNN) and Las Vegas Sands Corp. (NYSE:LVS), which were last seen down 5.2% and 4.7%, respectively, ahead of the open. In 2022, WYNN was already down 33.6%, while LVS was down 31.6% year-over-year.

  5. Three years inflation expectations should be out today.

OV Buzz Chart July 11

Covid-19 shutdowns gouge Asian markets

Most Asian markets fell today, led by Hong Kong’s Hang Seng, which fell 2.8%. Several China-based tech stocks including Alibaba (BABA) and Tencent (TCEHY) fell after government fines, while casino stocks were also hit due to Covid-19 lockdowns in Macau. Over the weekend, China’s producer price index (PPI) rose 6.1% in June, slightly better than expected but lower than the previous month. Rounding out the region, China’s Shanghai Composite fell 1.3%, while South Korea’s Kospi fell 0.4%. The sole winner, Japan’s Nikkei, added 1.1%.

Elsewhere, European markets are struggling midday as investors await U.S. inflation data this week. London’s FTSE 100 is down 0.3% at last check as the country faces some political uncertainty following the resignation of Prime Minister Boris Johnson as leader of the Conservative Party. The German DAX and the French CAC 40 are down 0.9% and 0.7% respectively.