Stock Futures Rise as Bond Yields Stabilize

The 10-year Treasury note has stabilized today

Managing Editor
Mar 26, 2019 at 9:23 AM
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Dow Jones Industrial Average (DJI) futures are trading above fair value today, following Monday's hard-fought win for the blue-chip barometer. A double-dose of news has investors optimistic today. First, the yield on the 10-year Treasury note has stabilized near 2.4%, after the yield curve inversion last week incited panic selling. Second, high-level trade talks between the U.S. and China are set to resume on Thursday, lending hope that a deal can be struck next month. This is offsetting a dismal reading on housing starts, which fell 8.7% in February to a seasonally adjusted annual rate of 1.16 million units. 

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

  • The S&P level that just emerged as resistance, courtesy of Schaeffer's Senior Market Strategist Matthew Timpane.
  • History says this big bank stock could bounce.
  • How options traders are positioning for KB Home earnings.
  • Plus, bull notes for Apple after its big event; a potential proxy fight for Bed Bath & Beyond; and Piper Jaffray's bullish on Nvidia.

Stock Futures Chart March 26

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 901,765 call contracts traded on Monday, compared to 560,325 put contracts. The single-session equity put/call ratio slipped to 0.62, and the 21-day moving average remained at 0.62.
  2. Apple Inc. (NASDAQ:AAPL) stock is up 1.5% in electronic trading, after at least four brokerages raised their price targets, including BTIG to $220 from $189, in the wake of the tech titan's streaming event yesterday. The FAANG name has gained 20% in 2019, guided by its ascending 10-day and 20-day moving averages.  
  3. Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock is up a whopping 22.8% ahead of the bell, after the Wall Street Journal reported several activist investors are preparing a proxy fight to overhaul the company's entire board. An upgrade to "strong buy" from "market perform" from Raymond James is only stoking the bullish flames. Thanks to a skeptical brokerage bunch, BBBY had been streaking lower since a rejection at the $17 level last month.
  4. Shares of Nvidia Corporation (NASDAQ:NVDA) are up 3.1% in electronic trading, after Piper Jaffray initiated coverage on the chipmaker with an "overweight" rating and $200 price target. The analyst in coverage likes the company's market positioning and exposure level. NVDA stock is already up almost 13% this month, thanks in part to recent well-received M&A news
  5. Philadelphia Fed President Harker will talk today, as will Boston Fed President Eric Rosengren. The economic schedule also features the S&P CoreLogic Case-Shiller home price index and consumer confidence. Earnings from Carnival (CCL), Cronos (CRON), Ollie's Bargain Outlet (OLLI), and Shoe Carnival (SCVL) are due.

hot stocks march 26

Tokyo Stocks Surge, Europe Pushes Past Brexit Drama

Tokyo-listed stocks bounced back today, recovering from Monday's slide with a 2.2% jump for the Nikkei. Nintendo was one of the session's top gainers, up 4.8% amid reports the company will debut two new iterations of its Switch gaming console this summer. Elsewhere, downbeat earnings guidance from Samsung Electronics kept a lid on gains in South Korea, where the Kospi edged up just 0.2% by the close. Likewise, Hong Kong's Hang Seng tacked on 0.2% to outperform its mainland counterpart, with China's Shanghai Composite dropping 1.5% on the day.

European markets are modestly higher at midday, led by energy stocks as Brent crude futures rally. In London, traders are eyeing Monday's late-breaking Brexit developments, after lawmakers passed the "Letwin amendment" to seize control of the process from Prime Minister Theresa May's government. Members of parliament are now expected to hold a series of non-binding votes on various Brexit outcomes this Wednesday.  At last check, the French CAC 40 is up 0.7%, the German DAX has gained 0.4%, and the U.K.'s FTSE 100 is 0.3% higher.

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