Dow Futures Point to Strong Gains

Meanwhile, blue chip Cisco Systems (CSCO) is set to report earnings post-close

by Josh Selway

Published on Feb 12, 2020 at 9:12 AM

U.S. stock futures are trading above fair value this morning, with the Dow Jones Industrial Average (DJI) eyeing triple-digit territory at the open. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are pointing to a solid start as well, as investors consider a mix of earnings reports and coronavirus headlines. Fed Chair Jerome Powell is also preparing for his second day of testimony on Capitol Hill, though the economic docket is rather bare otherwise.

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

  • Schaeffer's Senior Quantitative Analyst Rocky White breaks down what to expect when sentiment turns less bullish.
  • China buzz propped up Mastercard stock.
  • Plus, Shopify shares set for new highs; Lyft shares dip; and analysts warm to casino stock amid coronavirus noise.

US stock futures feb 12

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.42 million call contracts traded on Tuesday, to 641,151 put contracts. The single-session equity put/call ratio moved down to 0.45, and the 21-day moving average was 0.53.  
  2. E-commerce solutions provider Shopify Inc (NYSE:SHOP) is watching its stock take off before the open, as the shares gain 9.4% in pre-market trading. Traders are cheering the company's impressive fourth-quarter sales, which should take SHOP shares deeper into all-time-high territory, after they notched a record close of $492.75 yesterday -- putting their one-year rise at 185%.
  3. On the other hand, Lyft Inc (NASDAQ:LYFT) is on the move lower following its quarterly update. The ride-hailing stock is trading down 4.7%, with some disappointed in the company's profit timeline. However, the shares have also received their fair share of bullish attention this morning, too, including a price-target hike to $72 from Susquehanna.
  4. Wynn Resorts, Limited (NASDAQ:WYNN) has been upgraded at BofA Global Research to "buy" from "neutral." The brokerage firm cited a slowdown in the spread of the coronavirus, along with more efforts to control the virus in China. The analysts also mentioned that there has been a rather muted response in betting destination Macau.
  5. Federal budget data will roll out today. Earnings releases from Cisco Systems (CSCO), Teva (TEVA) and TripAdvisor (TRIP) will all be on tap.

Buzz Chart Feb 12

Asian Shares Try to Gain

Despite a climbing coronavirus death toll that has now surpassed 1,100, markets in Asia were mostly higher, with China’s Shanghai Composite and Hong Kong’s Hang Seng leading the charge, each with a 0.9% pop. South Korea’s Kospi wasn’t far behind, gaining 0.7%, while the Nikkei in Japan also tacked on 0.7% on Wednesday, as financial giant and Sprint shareholder Softbank got a lift on yesterday’s T-Mobile-Sprint merger.

European markets are also enjoying another day of gains, as cases of the Wuhan-based virus slow and investors turn their attention to a bevy of earnings reports. The Frankfurt DAX is up 0.8%, brushing off a mixed earnings report from retailer Ahold Delhaize, while the FTSE 100 in London is up 0.3%. Rounding out the region, the French CAC 40 has added 0.4% so far today.


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