Index Futures Fall to Close Out Volatile Week

Chinese officials are cracking down on cryptocurrency

Sep 24, 2021 at 9:11 AM
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Stock futures are lower this morning, as Wall Street looks to conclude a rocky week of trading. At last check, Dow Jones Industrial Average (DJI) futures are down around 145 points, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also swimming in red ink. Investors are digesting several earnings reports, including a quarterly revenue miss and lower-than-expected full-year forecast out of blue-chip Nike (NKE). Elsewhere, crypto and technology markets may be in jeopardy, as China aims to crackdown on Bitcoin (BTC), after the central bank in the region said all cryptocurrency related activities are illegal. Regardless, all three major indexes are still pacing toward modest weekly wins.

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

  • Don't fear NortonLifeLock stock's latest pullback.
  • This semiconductor giant is worth paying attention to.
  • Plus, Well Fargo downgrades Roku; Nike slashes revenue forecast; and Costco's stellar earnings report.

Futures Chart September 24

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.8 million call contracts traded on Thursday, compared to 780,742 put contracts. The single-session equity put/call ratio fell to 0.43, and the 21-day moving average stayed at 0.50.
  2. The shares of Roku Inc (NASDAQ:ROKU) are down 2.7% in electronic trading, after Wells Fargo downgraded the streaming staple to "equal weight" from "overweight." The analyst in question cited overenthusiastic revenue growth expectations as the catalyst for the note. Year-over-year, Roku stock is up 78.7%.
  3. Nike Inc (NYSE:NKE) is down 5.1% before the opening bell, after the blue-chip sneaker manufacturer cut its revenue forecasts amid a myriad of supply chain complications. In addition, Nike expects full-year sales growth for the 2022 fiscal year to come in lower than previously forecasted. This negative price action will put a dent in Nike stock's 12.8% year-to-date lead. 
  4. Retail giant Costco Wholesale Corporation (NASDAQ:COST) beat top- and bottom-line expectations in its fiscal fourth-quarter report last night. Further, net sales rose more than 17% year-over-year, while the shares have added 34.8% in the same timespan. COST was last seen 0.5% higher ahead of the open. 
  5. Closing out the week, new home sales are on the docket today.

Buzzsept24

Evergrande Crisis Continues to Grip Overseas Markets

Asian markets were mostly lower on Friday, amid lingering uncertainty as to whether or not China Evergrande Group will pay interest on an overdue U.S. dollar-denominated bond. Meanwhile, the Wall Street Journal reported the Chinese government has told officials to prepare for Evergrande’s potential collapse. The sole gainer was Japan’s Nikkei, which added 2.1%, while South Korea’s Kospi settled just below breakeven. Pacing the laggards was Hong Kong’s Hang Seng with a 1.3% drop, followed by China’s Shanghai Composite’s 0.8% dip.

European markets are also lower, as investors keep an eye on Evergrande. European Central Bank (ECB) President Christine Lagarde told CNBC in an interview that Europe’s direct exposure to that crisis would be “limited,” however. Also weighing heavy is news that German business sentiment dropped for a third-straight month in September. At last check, France’s CAC 40 is 1% lower, the German DAX is down 0.8%, and London’s FTSE 100 is off 0.3%.

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