Markets

Futures Bounce Back as Wall Street Sees Buying Opportunities in Beaten-Down Stocks

US stock futures were trading sharply higher ahead of Friday's open in what will likely be another volatile session on Wall Street. While the market remains vulnerable to another purge similar to Thursday's 1,000 point sell-off in the Dow, the major indices appear to be bucking the trend set overnight as the 10-year Treasury yield backs off the 2.85% detonator.

Thursday's US plunge spilled into overseas markets with China's Shanghai falling as much as 5%, exporting the negative tone to Europe where bourses were all down as much as 1%. US markets were also underwater in early morning trade with investors still shell-shocked from what will be the worst week in financial markets since the financial crisis of 2008. But bargain-hunters appear to have resurfaced to drive Dow futures higher by more than 200 points.

Nasdaq futures, however, were trending higher for most of the overnight session on strength in FAANG stocks (Facebook, Apple, Amazon, Neflix and Google) as well as the semiconductor sector after Nvidia ( NVDA ) crushed Q4 estimates. After breaching its 100-day moving average Thursday, the tech-heavy index was indicated to open with a near 50 point gain.

On deck for Friday is wholesale inventories and sales for December, and the weekly Baker Hughes oil rig count.

-Dow Jones Industrial up 0.40%

-S&P 500 futures up 0.59%

-Nasdaq 100 futures up 0.85%

SENTIMENT

Nikkei down 2.32%

Hang Seng down 3.10%

Shanghai Composite down 4.02%

FTSE-100 down 0.78%

DAX-30 down 1.55%

PRE-MARKET SECTOR WATCH

(+) Large cap tech: Higher

(+) Chip stocks: Higher

(+) Software stocks: Higher

(+) Hardware stocks: Higher

(+) Internet stocks: Higher

(-) Oil stocks: Lower

(-) Biotech stocks: Lower

(+) Drug stocks: Higher

(+/-) Financial stocks: Mixed

(+) Retail stocks: Higher

(+) Industrial stocks: Higher

(+) Airlines: Higher

(+) Autos: Higher

UPSIDE MOVERS:

(+) AOI (+35.50%) Reported upbeat Q3 results

(+) MOBL (+17.50%) Q4 results topped estimates, guides FY18 above street forecasts

(+) FEYE (+12.96%) Reported a profit for Q4, beating estimates for a loss of $0.02 per share, set Q1 and 2018 guidance above street view

(+) NVDA (+10.06%) Q4 results exceeded Wall Street's expectations

DOWNSIDE MOVERS:

(-) ELVT (-16.62%) Q4 results were below expectations, downgraded at BTIG Research to neutral from buy

(-) EXPE (-16.26%) Reported weaker-than-expected Q4 results

(-) FDX (-3.64%) and UPS (-3.72%) Amazon ( AMZN ) to launch shipping service this year

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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