Stock Futures Set to Soar Again

Investors are buying the news that a coronavirus slowdown could be imminent

Managing Editor
Apr 7, 2020 at 9:21 AM
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Dow Jones Industrial Average (DJI) futures look ready to build off yesterday's resounding rally, up more than 700 points above fair value this morning. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also soaring, as more signs point to a possible global slowdown of the coronavirus pandemic. New COVID-19 cases in hard-hit Spain and Italy have fallen off, while stateside, investors are buying the news of a rumored Phase 4 stimulus package within the next month. 

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

  • Schaeffer's Senior V.P. of Research Todd Salamone on the importance of a risk mitigation map for investors.
  • History says this China tech stock could struggle soon. 
  • Plus, LOW upgraded; cruise line up on Saudi stake; and MMM resolves White House spat.

Stock Futures Chart April 7

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.12 million call contracts traded on Monday, and 768,436 put contracts. The single-session equity put/call ratio dropped to 0.69, and the 21-day moving average slid to 0.84.
  2. Lowe's Companies, Inc. (NYSE:LOW) stock is up 4.5% ahead of the bell, after Loop Capital upgraded the home improvement retailer to "buy" from "hold" based on the company's attractive valuation. Elsewhere, Lowe's announced it would be closing its stores on Easter Sunday. LOW stock has bounced off its March 19 five-year low of $60, and is on track to face off with its 30-day moving average today.
  3. Carnival Corp (NYSE:CCL) stock is a big winner this morning, up 17% before the open, after Saudi Arabia's sovereign wealth fund disclosed a 8.2% stake in the company. CCL is staring at an 80% year-to-date deficit going into today, and fell to a record low of $7.80 last Thursday.
  4. The shares of 3M Co (NYSE: MMM) are up 4.9% in electronic trading, after the industrial manufacturer agreed to produce nearly 167 million medical masks for the government by July. The agreement resolves last week's conflict with the Trump Administration, and has MMM heading for its highest close in nearly a month. 
  5. The JOLTS report and consumer credit data on tap today. Meanwhile, Fluor (FLR), Levi Strauss (LEVI), and Revlon (REV) will all step into the earnings confessional.

Buzz Chart April 7

Asian, European Stocks Join Global Rally

Optimism over the slowing coronavirus pushed Asian markets way higher on Tuesday, as South Korea posted less than 50 new cases, and China announced no new coronavirus-related deaths as of April 6. China’s Shanghai Composite and Hong Kong’s Hang Seng both tacked on 2.1%. The Nikkei in Japan wasn’t far behind with a 2% pop, buoyed by plans for a 39 trillion yen ($357 billion) stimulus package in response to COVID-19 economic fallout. Meanwhile, South Korea’s Kospi added 1.8%. 

This hopefulness is giving European markets a big boost, too. At midday, the French CAC 40 is 2.6% higher, the German DAX is up 3.6%. Rounding out the region, the London FTSE 100 is up 2.7%, even amid news that U.K. Prime Minister Boris Johnson has been moved to intensive care as his coronavirus symptoms worsen. 

 

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