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Stock Futures Down As Intel Hinders Dow, This IPO Blasts Off | Stock News & Stock Market Analysis

Overseas action weighed stock futures lower Thursday after a volatile session in Japan rippled through to European trade.

XAutoplay: On | OffAmong Dow Jones industrial average issues, futures lagged 0.5% below fair value, with Intel (INTC) and JPMorgan (JPM) posting the heaviest early losses. S&P 500 futures slumped 0.4% and Nasdaq 100 futures shed 0.5%, with Stericycle (SRCL) and Monster Beverage (MNST) weighing on both indexes.

Small caps were under a bit less pressure than the general premarket session, with Russell 2000 futures off 0.3%.

In Japan, Tokyo’s market flashed a possible warning signal, rising nearly 2% in morning trade, then crashing to a 1.7% loss before paring losses to 0.2% at the close. The Nikkei 225 had gained in 23 of 25 prior sessions and broke above the 23,000 level for the first time in 25 years just before the reversal.

China’s markets notched a positive session, with the Shanghai Composite up 0.4% Thursday and carrying a 1.7% gain so far for the week. Hong Kong’s Hang Seng Index added 0.8%, up 1.9% for the week.

Europe’s markets traded sharply lower, as volatility in Tokyo compounded uncertainty tied to Brexit negotiations and U.S. political reforms, topped off by corporate earnings. Frankfurt’s DAX was down 0.8% at midday. The CAC-40 in Paris fell 0.6% and London’s FTSE 100 dropped 0.5%.

Intel Drags On Dow, Monster Stumbles; Perrigo, Roku Rocket

Intel took the Dow’s hardest early hit, down 0.8%, possibly due to news late Wednesday that Qualcomm (QCOM), which received an unsolicited $1-5 billion takeover bid this week from Broadcom (AVGO), was launching a chip aimed at competing with Intel in the market for server processing in cloud computing and data processing applications. Qualcomm shares traded up 0.2% ahead of the open.

Beaten down shares of Stericycle dropped 9% in premarket trade, after the company’s earnings and revenue missed analysts’ third-quarter targets.

Monster Beverage dragged 5% lower as is third-quarter earnings met, and revenue slightly topped, consensus expectations. Gross margins decreased to 62.6% during the quarter, down from 63.8% a year ago. The premarket move implied the stock would open below its 10-week moving average, and undercut the 57.35 buy point in a flat base.

Generic drug maker Perrigo (PRGO) pounded out a 13% premarket advance. The Allegan, Mich., company reported a big beat on its Q3 earnings line and its first earnings gain in seven quarters. Revenue slipped 2%, less than expected.

IBD 50 stock Alarm.com (ALRM) dived 8% despite reporting a strong third-quarter performance and raised fourth-quarter revenue guidance. The stock ended Wednesday in a test of support at its 10-week moving average, up 21% since clearing a flat base in August.

New issue Roku (ROKU) soared 30% in the premarket session after a healthy first-time report as a publicly-traded company. Shares ended Wednesday down 38% from their late September high, and 35% above their September 28 IPO price.

Weekly jobless claims data are due out from the Labor Department at 8:30 a.m. ET, with September wholesale inventories numbers from the Commerce Department expected at 10 a.m.ET.

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