Dow Futures Slide After Record Spike in Jobless Claims

This dip comes right on the heels of an impressive two-day rally for stocks

Deputy Editor
Mar 26, 2020 at 9:18 AM
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Futures on the Dow Jones Industrial Average (DJI) are looking at triple-digit losses at the open, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are also swimming in red ink ahead of the bell. The record-setting surge in weekly jobless claims to 3.28 million is sending stock futures lower, right on the heels of an impressive two-day rally. As more businesses shutter their doors in an attempt to combat the rapidly spreading coronavirus, the massive spike in jobless claims comes as no surprise. Elsewhere, the historic stimulus bill has been unanimously passed by the Senate, and now awaits approval from the House.

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

  • The 25 best SPX stocks since 2009. 
  • What options traders, analysts are pricing in for KB Home stock ahead of earnings. 
  • Plus, Cheesecake Factory refuses to pay rent; GRPN shaken by CEO departure; and Signet Jewelers surges on earnings beat. 

Futures Chart March 26

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.19 million call contracts traded on Wednesday, and 779,622 put contracts. The single-session equity put/call ratio rose to 0.65, and the 21-day moving average stayed at 0.85.
  2. Shares of Cheesecake Factory Inc (NASDAQ:CAKE) are down 18.4% this morning after the restaurant name's CEO David Overton told landlords that it will not be able to pay rent on April 1, according to a report from restaurant publication Eater. CAKE was down 51% year-to-date going into today.
  3. Groupon Inc (NASDAQ:GRPN) is off 1.6% this morning following news that CEO Rich Williams is resigning from his position effective immediately, joined by Chief Operating Officer (COO) Steve Krenzer. Both will remain employed by the company, according to Groupon, though the reason behind these resignations is unclear. GRPN is currently riding a three-day win streak.
  4. Signet Jewelers Ltd. (NYSE:SIG) is bucking the broad market trend this morning, up 15.1% after the jewelry retailer announced fourth-quarter profits of $3.67 per share and $2.15 billion in revenue, both of which beat analysts' expectations. The diamond specialist also announced a 2.3% rise in comparable-store sales but withdrew its 2021 financial guidance. SIG hit a record low of $5.60 on Monday, and is down 66.2% in 2020 before today's open. 
  5. Today's economic schedule will also deliver the final fourth-quarter GDP reading. BlackBerry (BBY), Canadian Solar (CSIQ), GameStop (GME), KB Home (KBH), and Lululemon Athletica (LULU) will all step into the earnings confessional. 

Buzz Chart March 26

European Stocks Slide Ahead of EU Coronavirus Summit 

Markets in Asia took a breather today, as investors looked for direction leading up to the release of weekly jobless claims in the U.S. Japan's Nikkei paced the region with a 4.5% loss, while South Korea's Kospi gave back 1.1%. China's Shanghai Composite ended 0.6% lower, and Hong Kong's Hang Seng shed 0.7%.

Over in Europe, stocks are down as well. Later today, European Union (EU) officials will hold a virtual summit to address the various responses to the coronavirus outbreak. At last check, London's FTSE 100 is down 2.5%. The French CAC 40 is off by 2.8%, and the German DAX is 3% lower, despite a big day from German software stock TeamViewer.

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