Government Shutdown Weighs on Stock Futures After Strong Month

Following an upbeat September, futures on the Dow Jones Industrial Average (DJIA), Nasdaq-100 Index (NDX), and S&P 500 Index (SPX) are all looking to start the month lower. Midnight ET marked the start of a government shutdown, as Republicans and Democrats remained at an impasse on funding. Investors are worried a prolonged shutdown will have severe impacts on what is already a delicate economy, dragging the banking sector and lifting safe haven prices.

• LendingClub stock looks like an attractive pick for bulls.
• Why investors may want to go against the grain, per Senior Quantitative Analyst Rocky White.
• Plus, Nike's impressive earnings; surging utility stock; and CVNA sees analyst boost.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw over 2.3 million call contracts and 1.4 million put contracts exchanged on Tuesday. The single-session equity put/call ratio rose to 0.58, while the 21-day moving average remained at 0.58.
2. Shares of Nike Inc (NYSE:NKE) are up 4.5% before the open, after the athletic retailer posted a fiscal first-quarter earnings and revenue beat. Should this morning's gains hold, it will put NKE on track for a fourth-straight daily win and shave off some of its 7.8% year-to-date deficit.
3. Utilities giant AES Corp (NYSE:AES) is up 10% in pre-market trading, after news broke that BlackRock Global Infrastructure Partners is looking to pen a buyout deal on the equity worth $38 billion. AES is clinging to its year-to-date breakeven level, but looks to have support emerging at the 20-day moving average.
4. Used car retailer Carvana Co (NYSE:CVNA) is 1.3% higher ahead of the bell, after Jefferies upgraded the stock to "buy" from "hold and hiked its price target to $485 from $375. CVNA has had an impressive year on the charts, now up 85.5%.
5. Economic data scheduled for this week, though it could be delayed by the shutdown.

Economic Data, Pharma Stocks Boost European Markets

Japan’s Nikkei was the only loser today, falling 0.9%, as Asian markets eyed updates on the U.S. government shutdown. The region’s third-quarter Tankan survey was released, showing an increase to +14 from +13, missing analyst expectations. South Korea’s Kospi added 0.9%, while markets in China and Hong Kong were shuttered for a holiday.

European stocks are seeing gains, thanks to a boost from the pharmaceutical sector following Merck’s (MRK) CEO change to Kai Beckman from Belén Garijo and President Donald Trump’s pharma efforts Tuesday. A regional summit is scheduled to take place in Copenhagen today, where leaders will work to enhance security following breach of airspace by Russia. Defense stocks were lower in response. Meanwhile, euro zone data showed a 2.2% lift year-over-year for September, matching expectations. At last check, London’s FTSE 100 is up 0.7%, France’s CAC 40 is 0.4% higher, and Germany’s DAX has added 0.5%.