Stock Futures Static as Wall Street Eyes Fed Meeting, Antitrust Hearing

CEOs of several tech behemoths are expected to testify before Congress

by Lillian Currens

Published on Jul 29, 2020 at 9:18 AM
Updated on Jul 29, 2020 at 9:31 AM

Stock futures are trading slightly above fair value ahead of the open this morning, as investors look toward today's Federal Reserve policy decision, as well as a major antitrust hearing involving FAANG names Amazon (AMZN), Apple (AAPL), Facebook (FB), and Alphabet (GOOGL). The Fed is expected to keep interest rates near zero, and said earlier this week it would prolong its lending programs to the end of 2020. Post-decision comments from Fed Chair Jerome Powell will also have Wall Street's attention.

The hearing regarding Big Tech's anti-competitive practices will serve as an indicator to how the aforementioned companies plan on dealing with potential antitrust regulations. In response, futures on the Dow Jones Industrial Average (DJI) are looking at a roughly 57-point open, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are pointing to shallow gains.

Continue reading for more on today's market, including: 

  • How to predict the S&P 500's top, according to Schaeffer's Senior Quantitative Analyst Rocky White. 
  • Digging into one vaccine stock associated with "Operation Warp Speed."
  • Plus, Boeing stock clamors higher despite Q2 miss; SPOT sees subscriber growth; and L Brands announces layoffs. 

Futures Chart July 29 2020

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.2 million call contracts traded on Tuesday, and 612,948 put contracts. The single-session equity put/call ratio rose to 0.50, and the 21-day moving average stayed at 0.48.
  2. Blue-chip component Boeing Co (NYSE:BA) is up 1.4% ahead of the bell, despite an uninspiring second-quarter report. Boeing's quarterly loss of $4.79 per share came in wider than the expected $2.54, while its revenue also missed the mark. The company cited slowing production rates for several of its aircraft, and the general sluggishness of the flight sector. 
  3. Streaming service Spotify Technology SA (NYSE:SPOT) also stepped into the earnings confessional this morning and reported a wider-than-expected quarterly loss, and a revenue miss. The firm did report revenue growth and said its subscriber count hit 138 million, exceeding expectations. The shares of SPOT are down 5% before the open, but are up 78.6% year-to-date heading into today. 
  4. Victoria's Secret-parent L Brands Inc (NYSE:LB) said it will lay off 15% of its corporate staff -- 850 positions -- in a plan to save $400 million annually. LB is surging in response, up 20.3% in electronic trading. LB is up 27.7% this quarter alone.
  5. Pending home sales data are on the schedule for today. Also moving markets will be earnings reports from the likes of Anthem (ANTM), Facebook, General Electric (GE), Gilead, and Teladoc (TDOC).

OV Buzz July 29

Asian Markets Digest Earnings; Surge in COVID-19 Cases Keeps European Stocks in Check

Stocks in Asia were mostly higher today, though the upcoming U.S. Federal Reserve’s interest rate decision and dismal company earnings still weighed on investors’ minds. Japan’s Nikkei closed 1.2% lower, after automaker Nissan Motor predicted a billion-yen loss for fiscal year 2020, and Canon reported its first-ever quarterly loss. Meanwhile, China’s Shanghai Composite and Hong Kong’s Hang Seng rose 2.1% and 0.5%, respectively. Elsewhere, South Korea’s Kospi closed 0.3% higher.

In Europe, stocks were mixed, as countries around the world continue to report surges in coronavirus deaths and cases, and the U.S. struggles to reach an agreement on its latest relief package. At last check, France’s CAC 40 was up 0.9%, London’s FTSE 100 was up 0.3%, and the German DAX was up 0.1%.


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