Dow Futures Pivot Higher on Trillion-Dollar Fed Program

Weekly jobless claims came in higher-than-expected, but down from last week

Managing Editor
Apr 9, 2020 at 9:18 AM
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In the wake of yesterday's outsized gains, Dow Jones Industrial Average (DJI) futures fought their way into the black, after paring triple-digit losses from earlier this morning. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are sitting just below fair value, as investors unpack the 6.6 million rise in weekly jobless claims, which topped the 5 million estimate.

Elsewhere, the Federal Open Market Committee (FOMC) announced a new $2.3 trillion lending plan focused on propping up small businesses amid the coronavirus pandemic. It's slated to be a busy day, with U.S. exchanges closed tomorrow in observance of Good Friday and a speech from Fed Chair Jerome Powell at 10 a.m ET. Oil prices are also in focus, with May-dated crude futures up 5.1% at $26.40 per barrel, at last check, ahead of the Organization of the Petroleum Exporting Countries+ (OPEC) meeting.

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

  • This gold stock has chart support in place.
  • Bernie Sanders' surrender did wonders for UnitedHealth stock.
  • Plus, Costco reports same-store sales pop; Disney+ passes 50 million; and UPS gets downgraded.

Stock Futures Chart April 9

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 974,226 call contracts traded on Wednesday, and 631,899 put contracts. The single-session equity put/call ratio stayed at 0.65, and the 21-day moving average slid to 0.81.
  2. Costco Wholesale Corporation (NASDAQ:COST) is down 3.1% in electronic trading, although the bulk discount retailer reported March same-store sales jumped by 9.6% amid the COVID-19 pandemic. Deutsche Bank trimmed its price target to $295 from $300 this morning as well. COST will be facing off with its year-to-date breakeven level today.
  3. Walt Disney Co (NYSE:DIS) stock is up 5.2% ahead of the bell, after the entertainment behemoth announced its Disney+ streaming service passed 50 million paid subscribers globally, no doubt getting a boost from stay-at-home edicts. Nevertheless, DIS was down 30% for 2020 going into today.
  4. The shares of United Parcel Service Inc (NYSE:UPS) are up 0.5% before the open, despite UBS downgrading the shipping concern to "neutral" from "buy." The analyst in coverage cited headwinds stemming from lower business-to-business volume. UPS is down 15.6% year-to-date, and has faced stiff overhead pressure from the $100 level.
  5. Closing out the week today is the producer price index (PPI), the University of Michigan's consumer sentiment index, and wholesale inventories data. WD-40 (WDFC) will throw its hat into the earnings ring. A reminder that markets will be closed tomorrow in observance of Good Friday, but data on the consumer price index and core consumer price index (CPI) will still be released. 

Buzz Chart April 9

Overseas Markets Continue to Climb

Asian stocks were mostly higher on Thursday, with the exception of the Nikkei in Japan, which finished just below breakeven. Elsewhere in the region, Hong Kong’s Hang Seng added 1.4%, China’s Shanghai Composite was up 0.4%, and South Korea’s Kospi tacked on 1.6%, as traders responded to the Bank of Korea holding its benchmark interest rate steady, which was largely expected.

In Europe, markets are modestly higher at midday with investors hoping cases in the region are beginning to reach their peak. The London FTSE 100 is up 1.1% amid news that the Bank of England (BoE) agreed to finance U.K. government borrowing temporarily. Meanwhile, the French CAC 40 is up 0.1%, and the German DAX is 0.5% higher. 


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