The U.S. stock market is open for business again after being closed for the Christmas holiday. How much business actually gets done is a whole other question, though, given that this is a popular vacation week for market participants.
Trading volume should be on the light side of things, especially with major European markets remaining closed for Boxing Day.
The light volume can lead to some outsized moves in individual stocks where the liquidity isn't flowing as freely as it was during many holiday parties over the three-day break. Such moves tend to be concentrated in the micro-cap/small-cap space, yet one of the more notable moves in pre-market action is affecting the largest company of all by market capitalization: Apple (AAPL).
Shares of AAPL are down 2.5% in pre-market trading amid press reports highlighting some analysts' reduction in their iPhone X shipment projections for the first quarter, citing tepid demand.
These reports hit the stocks of Apple suppliers in Asian markets and they are having some carryover effect here with names like Skyworks Solutions (SWKS), Cirrus Logic (CRUS), Broadcom (AVGO), and Finisar (FNSR) all down more than 1.5% in pre-market trading.
The weakness in Apple, and related suppliers, is the basis for why the Dow Jones Industrial Average and Nasdaq 100 futures are trading down by 45 points and 30 points, respectively.
The S&P futures, meanwhile, are the basis for why there may not be a whole lot of trading excitement from a broad market standpoint. They are down just one point and are trading fractionally below fair value.
The retailers are another group of stocks that will be watched closely today.
Unlike the early reports surrounding Apple, the early reports surrounding the retail industry have an upbeat feel to them. That's because Mastercard SpendingPulse is reporting retail sales, excluding autos, rose at their strongest pace (+4.9%) since 2011 from November 1 through Christmas Eve.
Many retail stocks had a huge run leading up to Christmas, so the intrigue will lay around whether they can further their gains on the good news or whether the good news itself will be treated as a selling opportunity.
Coincidentally, today is a big day for making returns to retailers. We'll find out soon enough, then, if the retail stocks also get returned so to speak.
In other developments, Japan reported a host of data overnight that featured higher inflation, a lower unemployment rate, and increased household spending -- none of which reportedly altered Bank of Japan Governor Kuroda's belief that the central bank needs to stick with its extremely accommodative monetary policy. Japan's Nikkei ended Tuesday down 0.2%.
The only economic release of note on the U.S. calendar today is the S&P Case-Shiller Home Price Index for October (Briefing.com consensus +6.3%; prior +6.2%). That report will be out at 9:00 a.m. ET (kind of like a lot of participants who might have gotten up early to check the news before directing their interests elsewhere today).