Stock Futures Lower as Overseas Data Cuts Into Sentiment

Recession concerns are reemerging this morning

Deputy Editor
Aug 15, 2022 at 9:05 AM
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Following a strong week for the major benchmarks, Dow Jones Industrial Average (DJIA) futures are down 220 points ahead of the open, while S&P 500 Index (SPX) and Nasdaq-100 (NDX) futures sink into the red as well. Disappointing economic data out of China is weighing on the market, as well as an unexpected rate cut from the People's Bank of China's (PBOC). Meanwhile, investors are looking ahead to this week's flood of retail earnings. 

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

  • Checking in with the SPX ahead of expiration week
  • The latest Schaeffer's Cannabis Stock News Update. 
  • Plus, ILMN sinks after earnings; POSH lower on mixed quarterly results; and OLO hit with downgrades.  

Futures August15

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.75 million call contracts traded on Friday, and 878,118 put contracts. The single-session equity put/call ratio fell to 0.50, and the 21-day moving average stayed at 0.68.
  2. Barclays upgraded Poshmark Inc (NASDAQ:POSH) to "overweight" from "equal weight," with a price-target hike to $17 from $13, noting the growing second-hand clothing industry. POSH is up 5.5% before the bell, rising from its post-earnings slump. Year-to-date, the equity is down 30.7%. 
  3. Vroom Inc (NASDAQ:VRM) is down 4.7% premarket, after J.P. Morgan Securities downgraded the stock to "underweight" from "neutral." VRM is down 80.4% year-to-date and struggling to make it out of penny stock territory, which it has been in for the better part of 2022. 
  4. Retailer Revolve Group Inc (NYSE:RVLV) is down 3.3% in electronic trading, after Barclays downgraded the stock to "underweight" from "equal weight," with a price-target cut to $20 from $30. On the charts, the security is seeing pressure at the $32 level as well as the 80-day moving average. 
  5. Today will bring the Empire State manufacturing index, as well as the National Association of Home Builders (NAHB) home builders' index.

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Investors Eye Economic Data out of Asia

Asian markets saw mixed settlements on Monday amid a slew of economic data throughout the region. Specifically, China reported industrial output and retail sales for July that fell below estimates, while Japan’s gross domestic product (GDP) reading for the April-June quarter saw a 2.2% expansion, which slightly missed estimates but topped its pre-Covid level. The Hong Kong Hang Sang saw the biggest losses, dropping 0.7%, weighed further by news that Chinese companies China Life Insurance (LFC) and China Petroleum and Chemical (SNP) plan to pull their U.S. listings. The Shanghai Composite in China saw a muted 0.02% drop, while the Nikkei in Japan rose 1.1%, and the South Korean Kospi was closed for holiday.

European stocks are inching lower as investors take a breather from last week’s impressive rebound. The U.K. shared a gross domestic product (GDP) reading on Friday that fell 0.1% for the second quarter, which marked a contraction, though the number beat the 0.3% contraction analysts expected.  At last check, the London FTSE 100 is down 0.4%, the French CAC 40 has lost 0.2%, and the German DAX is down 0.3%.

 

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