Stock Futures Buoyed by ECB Stimulus News

The ECB announced a longer-term loan stimulus program

Managing Editor
Mar 7, 2019 at 9:22 AM
facebook twitter linkedin


The Dow Jones Industrial Average (DJI) is fresh off a three-day losing streak, but futures on the blue-chip index are cautiously higher today, propped up by the European Central Bank (ECB) decision to leave interest rates unchanged through the end of 2019 -- longer than previously forecast -- and launch a new longer-term loan stimulus program for banks. As far as economic data, U.S. productivity rose 1.9% in the fourth quarter, while unit labor costs increased 2%. And oil prices are set to climb, too, with April-dated crude futures up 0.9% at $56.75 per barrel.

Continue reading for more on today's market, including: 

  • 2 travel stocks flashing buy signals.
  • Options bears piled on GE after a CEO shocker.
  • This weed stock has options on sale.
  • Plus, American Eagle sinks on weak guidance; a big bull note for Constellation Brands; and Allergan under pressure after depression drug data.

Stock Futures Chart March 7

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 991,028 call contracts traded on Wednesday, compared to 697,993 put contracts. The single-session equity put/call ratio climbed to 0.70, and the 21-day moving average rose to 0.61.
  2. American Eagle Outfitters (NYSE:AEO) stock is down 2.9% in electronic trading, after the retailer's fourth-quarter revenue fell short of expectations. The company's current-quarter earnings guidance also came in lower than expected. AEO gapped 4.4% higher yesterday, but encountered familiar resistance near its 320-day moving average.
  3. Constellation Brands, Inc. (NYSE:STZ) is up 1.6% ahead of the bell, after Credit Suisse initiated coverage on the beer maker with an "outperform" rating and $230 price target. Since falling to a nearly two-year low of $150.37 on Jan. 9, STZ has added 10%, but the overhead $175 level still lurks. 
  4. Shares of Allergan plc (NYSE:AGN) are struggling in electronic trading, after the drugmaker's depression treatment failed three late-stage studies. Six price-target cuts have come through, including one to $155 from $161 at Credit Suisse. As of yesterday, AGN was clinging to its year-to-date breakeven level, and staring up at its 50-day moving average.
  5. Today's slate is highlighted by weekly jobless claims, the Fed's balance sheet, and consumer credit report. Plus, American Outdoor Brands (AOBC), Barnes & Noble (BKS), Burlington Stores (BURL), Costco (COST), El Pollo Loco (LOCO), Eventbrite (EB), GNC Holdings (GNC), H & R Block (HRB), and Marvell Technology (MRVL) all step into the earnings confessional.

stock market news march 7

China's Shanghai Composite Win Streak Hits 5

Stocks in Asia failed to generate much momentum, as traders continued to await more clarity on a U.S.-China trade deal. Still, China's Shanghai Composite managed to extend its daily win streak to five, edging out a 0.1% gain on the day. Meanwhile, China’s finance minister said that despite the country’s new fiscal policies, it will not open a “floodgate” of stimulus, according to Reuters. Elsewhere, Hong Kong's Hang Seng fell 0.9%, and a pullback in chip stocks pushed Japan’s Nikkei down 0.7%. South Korea’s Kospi joined the losers with a 0.5% retreat. 

European benchmarks are hovering near breakeven today following the ECB’s decision to provide new loans for banks as a way to stimulate the eurozone economy. London's FTSE 100 has come off its early lows, but remains off 0.2% on the day. Germany’s DAX is also trying to push into positive territory, last seen down 0.04%, while France’s CAC 40 is up 0.07%. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners