The 10-year yield is trading near the key 3% level
Dow Jones Industrial Average (DJI) futures are signaling a modestly higher start, as traders keep a cautious eye on the 10-year Treasury yield, which rose as high as 2.995% earlier. The U.S. dollar is also on the rise, pressuring June-dated crude futures down 1.4% to $67.42 per barrel following last week's big gains. And ahead of a busy week of corporate earnings -- which includes several FAANG members -- airline Alaska Air Group (ALK) is higher in pre-market trading on a positive earnings reaction, while Mattel (MAT) peer Hasbro (HAS) is set for a post-earnings slump.
Continue reading for more on today's market, including:
- The key Apple price point to watch ahead of earnings.
- Options traders bet on a big bounce for embattled Wynn Resorts stock.
- Bullish options prices imploded on this sinking Apple supplier.
- Plus, a big vote of confidence for Merck; Kimberly Clark bounces back; and the drug stock set to drop 60%.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.41 million call contracts traded on Friday -- the most since Jan. 19 -- compared to 913,725 put contracts. The single-session equity put/call ratio rose to 0.65, while the 21-day moving average remained at 0.66.
- Goldman Sachs upgraded Merck & Co., Inc. (NYSE:MRK) to "buy" from "neutral," and added the stock to its "Americas Conviction List," citing optimism surrounding the pharmaceutical firm's lung cancer drug, Keytruda. After closing Friday at $58.83 -- just below long-term resistance at its 200-day trendline -- MRK stock is up 2.2% in pre-market trading.
- Kleenex maker Kimberly Clark Corp (NYSE:KMB) reported first-quarter adjusted earnings of $1.71 per share on $4.73 billion in revenue -- beating analysts' expectations. After hitting a four-year low of $98.92 on Friday amid sector headwinds, KMB shares have gained 2.1% ahead of the bell.
- Prothena Corporation (NASDAQ:PRTA) said it has discontinued the development for its AL amyloidosis drug after it failed in mid- and late-stage studies. PRTA stock is bracing for a 60.5% drop out of the gate, on track to trade below $14 for the first time since July 2013.
- Markit's flash composite purchasing managers index (PMI) and existing home sales will kick off the week. Alphabet (GOOGL), FirstEnergy (FE), Halliburton (HAL), Wynn Resorts (WYNN), and Xerox (XRX) will report earnings.
Stronger Yen Weighs on Tokyo Stocks
Stocks in Asia finished lower to kick off the week, as the U.S. tech sector sell-off seeped into global markets. Japan's Nikkei lost 0.3% amid a strengthening yen. South Korea's Kospi finished 0.1% lower on heavy foreign selling, despite gains for North Korea-exposed stocks after Pyongyang said it will suspend nuclear testing. Hong Kong's Hang Seng index gave back 0.5%, while China's Shanghai Composite slipped 0.1%.
Markets in Europe are just barely higher at midday, as rising U.S. Treasury yields keep investor sentiment in check. London's FTSE 100 is 0.07% higher at last check, thanks to a 9.8% post-earnings rally from manufacturing giant Rotork. The French CAC 40 and German DAX are also both marginally higher -- up 0.02% and 0.01%, respectively -- after IHS Markit reported flash eurozone manufacturing and services PMI readings for April that arrived largely in line with consensus expectations.