Retail sales jumped higher than Wall Street estimated
Despite yesterday’s rebound, equity futures once again envision a muted opening. The lackluster price action comes even after August retail sales data showed a surprise gain last month despite mounting fears over the virus. However, weekly jobless claims for the past week were higher than expected, with 332,000 deposits on the books. At the last check, the futures contracts on the Dow Jones Industrial Average (DJI) are just above the break-even point, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures swim in red ink.
Read on to learn more about the current market, including:
- SAGE Therapeutic Action appears on the FDA’s expedited designation.
- Chinese regulators aim game names.
- Plus, Beyond Meat’s bear note; DoorDash bull note; and two casino stocks rocked by regulatory talks.
5 things you need to know today
- The Cboe Options Exchange (CBOE) saw more than 1.6 million purchase contracts traded on Wednesday, up from 802,639 sales contracts. The single-session put / call ratio fell to 0.49 and the 21-day moving average remained at 0.51.
- Alternative meat problem Beyond Meat Inc (NASDAQ: BYND) was down 3.1% before the open, after Piper Sandler lowered the stock from “neutral” to “underweight”. The company noted that while “Beyond is an early leader in plant-based meat,” it believes future revenue reports will fall short of expectations. Year after year, Beyond meat broth is down 24.4%.
- DoorDash Inc (NYSE: DASH), meanwhile, is up 2.5% in e-commerce, after Bank of America upgraded the food delivery app to “buy” from “neutral” and raised its price target to $ 255 versus $ 190. Bank of America cited the company’s bullish estimates for 2021 and called its five-year growth opportunities “robust.” DoorDash stock added 47% in 2021.
- Concerns of casinos Wynn Resorts, Limited (NASDAQ: WYNN) and Las Vegas Sands Corp. (NYSE: LVS) are down 3% and 2.6%, respectively, ahead of the opening bell, as Chinese regulators continue to reflect on tight restrictions on The gaming industry in Macau. In response, JPMorgan downgraded both stocks to “neutral” from “overweight”. In the past six months, WYNN has lost 38.3% while LVS is down 42.3%.
- Most of this week’s economic data is forecast for today, including business inventories Philadelphia Fed reports and manufacturing index.
Asian stocks fall amid heightened surveillance of games
Asian markets stabilized firmly lower on Thursday, as casino shares continued to fall in response to the 45-day public consultation on Macau gambling, which began earlier this week and could result in more restrictions. Hong Kong’s Hang Seng, which lost 1.5%, followed the 1.3% decline of China’s Shanghai Composite. Elsewhere, South Korea’s Kospi fell 0.7%, while Japan’s Nikkei was down 0.6%.
European markets, meanwhile, are on the rise, breaking with the cautious sentiment seen around the world. Investors are watching the latest US inflation data and digesting a cabinet reshuffle of UK Prime Minister Boris Johnson, after replacing several high-ranking ministers and calling on the government to tackle income inequality spurred by the pandemic . At the last check, the French CAC 40 is up 1.1%, the German DAX is up 0.5% and the London FTSE 100 is up 0.4%.