Stock Futures Climb Despite COVID-19 Uncertainty

Johns Hopkins University data shows declining COVID-19 cases, but increasing fatalities

Managing Editor
Apr 8, 2020 at 9:09 AM
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After yesterday's roller-coaster session, Dow Jones Industrial Average (DJI) futures are signaling triple-digit gains this morning. There continues to be a slew of mixed messages as to whether the coronavirus pandemic is slowing; Johns Hopkins University reported a drop in daily case increases since Friday, but yesterday was a record single-day jump for fatalities. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also modestly higher, as the White House now debates how much of the economy should re-open and how quickly. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White digs deeper into a popular technical analysis tool.
  • See why options traders blasted AT&T stock yesterday.
  • Plus, GM shakes off downgrade; Tesla furloughs non-essential workers; and Starbucks chips in to help.

Stock Futures Chart April 8

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.26 million call contracts traded on Tuesday, and 826,898 put contracts. The single-session equity put/call ratio dropped to 0.65, and the 21-day moving average slid to 0.82.
  2. General Motors Company (NYSE: GM) stock is up 0.9% ahead of the bell, shaking off a downgrade from Deutsche Bank to "hold" from "buy." The analyst in coverage also slashed its price target to $25 from $41, citing liquidity issues amid the coronavirus pandemic. The auto stock was up 18% this week going into today.
  3. The shares of Tesla Inc (NASDAQ:TSLA) are up 2.2% in electronic trading, after the carmaker announced it will furlough all non-essential workers and trim employee salaries to help combat the COVID-19 outbreak. Production is planned to resume on May 4. Tesla stock has doubled in the last 12 months, and remains up 30% in 2020.
  4. Starbucks Corporation (NASDAQ:SBUX) stock is up 1% before the open, after the coffee chain pledged a $10 million relief fund for its workers during the coronavirus crisis. Starbucks stock is down 22% year-to-date, but will face off with its overhead 30-day moving average today.
  5. Wall Street will will be keeping an eye on the Fed minutes from last month's meeting. DAL will post its quarterly report today as well. 

New Buzz Chart April 8

Slowdown Optimism Dashed Overseas

Asian markets were mostly lower, as several countries in the region attempt to combat the coronavirus, including Japanese Prime Minister Shinzo Abe declaring a state of emergency on Tuesday, and Singapore banning any and all social gatherings. Elsewhere, China lifted travel restrictions in Wuhan, officially ending a lockdown that lasted over two months. In light of this news, Japan’s Nikkei added 2.1%, Hong Kong’s Hang Seng slipped 1.2%, the Shanghai Composite in China lost 0.2%, and the South Korean Kospi shed 0.9%.

Yesterday’s optimism of a virus slowdown in Europe has largely been dashed, pushing the major bourses lower midday. The London FTSE 100 is down 1.1%, dampened by the airline sector, while the German DAX is off 0.7%, and the French CAC 40 is 1.3% lower.

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