Dow Futures Lower, Sizeable Monthly Win Still in Sight

The major indexes are lower before the bell

Stock futures are slipping this morning, looking to end the month on a low note after Friday’s rally. Dow Jones Industrial Average (DJIA) futures are off 151 points at last glance, though the blue-chip index is still well-positioned for its best month since 1976, while futures on the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are swimming in red ink as well, as the benchmarks eye big monthly wins. Meanwhile, investors are still unpacking last week’s lackluster batch of Big Tech earnings.

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

  • Why Dell stock is an intriguing option. 
  • Check out the latest Schaeffer’s Market Mashup episode. 
  • Plus, why this hotel stock is surging; CAT downgraded; and Emerson Electric sells majority stake.

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts and 1.1 million put contracts traded on Friday. The single-session equity put/call ratio fell to 0.66, while the 21-day moving average stayed at 0.68.
  2. Wynn Resorts, Limited (NASDAQ:WYNN) is up 4.8% premarket, after a Securities and Exchange Commission (SEC) filing revealed investor Tilman Fertitta has taken a 6.1% stake in the hotel name. The shares are down 31.4% year-to-date, though the $54 level has been providing support on the charts this month. 
  3. UBS downgraded Caterpillar Inc (NYSE:CAT) to “neutral” from “buy,” noting this adjustment now represents a more balanced risk/reward profile. Citigroup chimed in with a price-target hike to $235 from $180, citing higher prices will offset rising costs. CAT is down 1.3% in electronic trading, though it is still on track to wrap up a stellar month of gains. 
  4. Emerson Electric Co (NYSE:EMR) is in the spotlight, after reports that it is selling a majority stake in its climate technologies business to Blackstone (BX) in a deal that is valued at roughly $14 billion. The equity is up 19.4% month-to-date, and 1.8% higher ahead of the open.
  5. Today will bring the Chicago Purchasing Managers’ (PMI) Index. 

Euro Zone Reports Record High Inflation

Stocks in Asia were mixed to close the first month of 2022’s final quarter. Japan’s Nikkei led the gainers, closing at its highest level since Sept. 20 after adding 1.8%. And although industrial production data dropped, snapping a three-month growing streak, equities in the area are heading for their best month in nearly two years as the falling yen boosts exporting firms. South Korea’s Kospi also posted a win, adding 1.1%. Meanwhile, the Shanghai Composite in China shed 0.8%, after the country’s official non-manufacturing purchasing manager’s index (PMI) came in at 48.7 – a substantial contraction from September to October. In Hong Kong, the Hang Seng took a 1.2% haircut, as Macao casino stocks fluctuated following a visa policy update for mainland Chinese residents seeking to travel to the gaming hub.

The major European bourses are mostly higher today, albeit cautiously, as investors digest euro zone inflation and gross domestic product (GDP) data. Digging deeper, inflation in the region hit a record high of 10.7% annually in October, while third-quarter GDP rose by a paltry 0.2%. Despite this, London’s FTSE 100 and Germany’s DAX were last seen 0.2% and 0.3% higher, respectively, though France’s CAC 40 is 0.2% lower at last glance.

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