Dow Jones Industrial Average (DJIA) futures are trading below fair value, as the tensions between the U.S. and North Korea amplify. Most recently, Pyongyang called President Trump’s “fire and fury” threats a “load of nonsense,” and detailed plans on a potential missile strike against Guam — which prompted warnings from South Korea and Japan.
A fresh batch of retail earnings is in focus, too, with Dillard’s among several stocks within the sector set to plunge after reporting. Wall Street is also digesting soft inflation data — a key metric the Fed tracks — with the producer price index falling 0.1% in July, its biggest decline in 11 months. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are lower, as well, in what could be a third straight loss for U.S. stocks.
Continue reading for more on today’s market, including:
- The red-hot defense stock with bargain-bin options.
- ValueAct sold 7 million shares of this Dow stock.
- Analysts: 16-year lows in store for this apparel stock.
- Plus, Macy’s earnings; Blue Apron’s first report; and the latest Tesla news.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 754,195 call contracts traded on Wednesday, compared to 628,435 put contracts. The single-session equity put/call ratio jumped to 0.83 — the highest since April — and the 21-day moving average rose to 0.65.
- Macy’s Inc (NYSE:M) reported stronger-than-expected quarterly earnings, and a smaller-than-anticipated drop in comparable-store sales. The department store also reaffirmed its full-year sales and earnings guidance, and plans to launch a new loyalty program and marketing strategy in the fall to improve sales. Macy’s stock has reversed earlier losses, now up 1.4% in pre-market trading.
- Blue Apron Holdings Inc (NYSE:APRN) posted a steeper-than-expected loss in its first quarterly report as a public company, though the meal service provider’s revenue exceeded forecasts and its customer base grew by 23% during the past year. Nevertheless, APRN is down 12.7% in pre-market trading, headed for a record low.
- Tesla Inc (NASDAQ:TSLA) is reportedly developing an electric, long-haul, self-driving semi-truck that can move in platoons and follow a lead vehicle. The luxury car company met with California officials Wednesday to discuss the self-driving truck, which it plans to unveil in September. Shares of Tesla are trading 0.2% higher in electronic trading.
- Nordstrom (JWN), NVIDIA (NVDA), and Snap (SNAP) will report earnings.
It was a down day for Asian stocks, as traders shied away from riskier assets amid the ongoing war of words between North Korea and the U.S. The biggest loser in the region was Hong Kong’s Hang Seng, which dropped 1.1%. China’s Shanghai Composite followed suit with a 0.4% retreat, after the latest consumer prices index for the country rose less than expected, and the producer price index met forecasts. In Japan, the Nikkei closed in the red ahead of Friday’s national holiday, dropping 0.1%. South Korea’s Kospi also suffered a loss, giving back 0.4%.
The selling pressure is hitting major European benchmarks, as well. Aside from the geopolitical drama, investors are digesting a rise in the U.K.’s trade deficit in June, as well as disappointing housing data for the region in July. In France, industrial production for June unexpectedly increased, and factory production was also better than expected. Still, the French CAC 40 is trading below breakeven, down 0.2%. Elsewhere, Germany’s DAX has dropped 0.7% and London’s FTSE 100 is off 1.1%, putting it in on pace for its biggest single-day percentage loss since April.