Stock Futures Rise Ahead of Next Brexit Vote

The S&P 500 and Nasdaq are signaling positive starts

by Patrick Martin

Published on Mar 13, 2019 at 9:20 AM

Dow Jones Industrial Average (DJI) futures are pointed cautiously higher this morning, trying to shake off headwinds from the controversy surrounding Boeing's (BA) 737 MAX 8 aircraft. Global tensions remain high, as Britain's parliament will vote later today on whether to leave the European Union (EU) without a Brexit deal.

Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are trading above fair value, too, as investors digest a 0.4% rise in durable goods orders in January -- the third straight monthly gain -- and a 0.1% increase in wholesale prices last month. Elsewhere, oil prices continue to climb, with April-dated crude futures up 1.1% at $57.50 per barrel.

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

  • Schaeffer's Senior Quantitative Analyst Rocky White breaks down what happens after the S&P rallies fast.
  • Barclays downgrades weighed on these 2 grocery stocks.
  • Options volume popped on these 2 British ETFs
  • Plus, Nelson Peltz joins Aurora Cannabis; a C-suite shake-up at Ride Aid; and Spotify takes action against Apple.

Stock Futures Chart March 13

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 964,175 call contracts traded on Tuesday, compared to 638,469 put contracts. The single-session equity put/call ratio climbed to 0.66, and the 21-day moving average remained at 0.62.
  2. Aurora Cannabis Inc (NYSE:ACB) stock is up 12.4% in electronic trading, after the cannabis producer announced billionaire investor Nelson Peltz as a strategic advisor to explore potential partnerships. ACB has added 60% already in 2019, guided higher by its ascending 30-day moving average. 
  3. Rite Aid Corporation (NYSE:RAD) stock is up 9% ahead of the bell, after the company announced its CEO, chief financial officer, and chief operating officer were all stepping down. The pharmacy chain also announced a broader restructuring plan -- including 400 job cuts -- that will save an estimated $55 million per year. RAD has been in a channel of lower lows since trading near $2 in August, with breakouts contained by its 80-day moving average.
  4. Shares of Spotify Technology SA (NYSE:SPOT) are up 1.5% in electronic trading, after the company filed an antitrust complaint against Apple (AAPL) with the EU. The streaming company claims Apple unfairly abused its power in the app store to favor Apple Music. SPOT has tacked on 41% since its Christmas Eve bottom near $103.
  5. Traders will take in construction spending and domestic crude inventories today. Tailored Brands (TLRD) will report earnings.

stock market news march 13

Asian, European Markets React to Brexit Vote

Stocks in Asia traded lower following another “no” vote on a Brexit deal in the U.K. China’s Shanghai Composite had the worst day, shedding 1.1%, and Japan’s Nikkei was close behind with a 1% pullback. In Hong Kong, the Hang Seng slipped 0.4%, while South Korea’s Kospi fell 0.4%, as well. 

As for Europe, equity benchmarks are mixed following yet another losing vote for British Prime Minister Theresa May. The FTSE 100 in London and German DAX are both hovering right near breakeven halfway through the day, and France’s CAC 40 was last seen up 0.4%. The uncertainty comes as more Brexit votes are scheduled for later today. Looking to individual stocks, Adidas is in the headlines due to the company’s poorly received sales outlook. 

 
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