OPENING BELL

Wall Street equity index futures point to a lower open with declines in Technology shares reflecting a subtle deterioration in investor sentiment.

Monday’s session saw the Technology sector (-3.83%) retreat as investors fled from the popular “FAANG” names, made up of; Facebook (FB: -5.72%), Amazon (AMZN: -5%), Apple (AAPL: -3.96%), Netflix (NFLX: -5.45%) and Alphabet (GOOGL: -3.82%) – All in a bear market territory with each member down more than -20% from their one-year highs.

One factor bearing substantial weight on the tech sell-off surrounds declining Apple iPhone demand. The WSJ, yesterday, reported that Apple is paring back production of its newest smartphone models which rekindled concerns that consumer appetite for Apple’s key product line has peaked.

Chipmakers also suffered heavy losses; unable to shake off Nvidia’s (NVDA: -12%) disappointing outlook – the company announced that sales from cryptocurrency mining have faded.

The tech-heavy Nasdaq Composite, itself, ended the session near low-of-day, sinking -3% lower. The S&P 500 fell -1.7% with selling in the Consumer Discretionary (-2.44%) and Communication Services (-2.4%) sectors also weighing on the index. The blue-chip Dow Jones Industrial Average fell -1.6% lower.

Investors will keep a close eye on today’s wide range of earnings data, with; Lowe’s (LOW), Medtronic (MDT), Best Buy (BBY), Campbell Soup (CPB), Hormell Foods (HRL), Kohl’s (KSS), Target (TGT) and TJX (TJX) all expected to report before the bell. While; Autodesk (ADSK), Footlocker (FL) and BJ’s Wholesale (BJ) are expected to report after the bell.

On the economic data front, investors will look to the US Building Permits and Housing Starts numbers scheduled for release at 8:30am EST.

TODAY’S TOP HEADLINES

Cryptocurrency: No End in Sight for Crypto Sell-Off as Bitcoin Breaches $4,500. (Bloomberg)
The largest digital currency, which started the year at more than $14,000, has fallen to $4,409.43.

North America: California wildfires estimated to cost insurers up to $13B. (The FT)
The spate of wildfires burning across California will cost the insurance industry between $9bn and $13bn, according to new estimates from modelling firm RMS.

North America: Legal pot shops set to open in Massachusetts. (USA Today)
A new era of legal marijuana sales is about to begin in Massachusetts. Two years after voters in the Bay State approved recreational pot, two retail shops, the first in the eastern US are set to open at 8am EST.

China & Politics: Trump Threatens High-Tech Export Curbs in Latest Swipe at China. (Bloomberg)
The Trump administration is considering tighter curbs on technology exports. A request for public comment, published Monday, asks if a list of new technologies that have national security applications from artificial intelligence to microprocessors and robotics should be subject to more stringent export-control rules.

ECONOMIC CALENDAR
Today’s Economical Announcements

08:30AM – Building Permits (Oct) (Previous: 1.260M)
08:30AM – Building Permits (MoM) (Oct) (Previous: -0.8%)
08:30AM – Housing Starts (Oct) (Previous: 1.225M)
08:30AM – Housing Starts (MoM) (Oct) (Previous: -1.6%)

STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.

Target (TGT): [EARNINGS] Earned an adjusted $1.09 per share for the third quarter, 3 cents a share below estimates. Revenue exceeded forecasts.

L Brands (LB): [EARNINGS] L Brands beat forecasts by a penny a share, with adjusted quarterly profit of 16 cents per share. Revenue best estimates. The company raised its full-year guidance.

Pure Storage (PSTG): [EARNINGS] Reported adjusted quarterly profit of 13 cents per share, 4 cents a share above estimates. Revenue came in above estimates.

Kohl’s (KSS): [EARNINGS] Earned an adjusted 98 cents per share for the third quarter, 2 cents a share above estimates. Revenue came in above analysts’ projections.

Best Buy (BBY): [EARNINGS] Beat estimates by 8 cents a share, with adjusted quarterly earnings of 93 cents per share. Revenue beat forecasts.

Lowe’s (LOW): [EARNINGS] Reported adjusted quarterly profit of $1.04 per share, beating estimates by 6 cents a share. Revenue topped forecasts.

Campbell Soup (CPB): [EARNINGS] Earned an adjusted 79 cents per share for its latest quarter, 9 cents a share above estimates. Revenue also exceeded forecasts.

Boston Scientific (BSX): [NEWS] Boston Scientific offered to buy British drug maker BTG for about $4.24 billion in cash.

Urban Outfitters (URBN): [EARNINGS] Came in 8 cents a share above estimates, with quarterly profit of 70 cents per share – also reported better-than-expected revenue and reported a better-than-expected 8 percent increase in comparable-store sales.

Hormel (HRL): [EARNINGS] Beat estimates by 2 cents a share, with adjusted quarterly profit of 51 cents per share. Revenue missed forecasts.

Intuit (INTU): [EARNINGS] Reported adjusted quarterly earnings of 29 cents per share, beating the consensus estimate of 11 cents a share. Revenue beat forecasts.

Medtronic (MDT): [EARNINGS] Beat forecasts by 7 cents a share, with adjusted quarterly profit of $1.22 per share. Revenue beat estimates.

Agilent Technologies (A): [EARNINGS] Reported adjusted quarterly profit of 81 cents per share, beating estimates by 7 cents a share. Revenue topped forecasts.

MOMENTUM STOCKS
GAINERS: –
LOSERS: OKTA, ZUO, DXCM, SQ, TDOC, NVDA

TODAY’S IPOs
None.