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Earnings, OPEC+ Deal Drag Stock Futures Lower

OPEC and its allies agreed to a 9.7 million barrel per day production cut

Managing Editor
Apr 13, 2020 at 9:04 AM
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Fresh off the Easter holiday, Dow Jones Industrial Average (DJI) futures are poised to drop this morning. On the forefront of investor minds is the conclusion of the Organization of the Petroleum Exporting Countries+ (OPEC+) meeting, where a deal was reached with allies on a global output cut of 9.7 million barrels a day, effective in May.

Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also in the red before the open, as Wall Street looks ahead cautiously to the start of earnings season, with several big bank names the first to step up to the plate. Many are bracing for dismal results across the board as the coronavirus continues to wreak havoc on the U.S. with confirmed cases now totaling nearly 550,000, more than any other country in the world according to Johns Hopkins University. 

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

  • This mining stock could run into trouble soon.
  • Popular Zoom stock shook off a Senate warning last week.
  • Plus, DNKN double upgraded; Facebook ad rates drop; and Macy's hires Lazard.

Stock Futures Chart April 13

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.3 million call contracts traded on Thursday, and 861,742 put contracts. The single-session equity put/call ratio stayed at 0.65, and the 21-day moving average slid to 0.80.
  2. Dunkin' Brands Group Inc (NASDAQ:DNKN) stock is up 6,2% ahead of the bell, after Credit Suisse issued a double-upgrade to "outperform" from "underperform." While the brokerage also trimmed its price target to $67 from $73, the analyst in coverage raved about the company's valuation. DNKN -- no stranger to bull notes -- is up 9% this quarter.  
  3. Facebook, Inc. (NASDAQ:FB) stock is off by 0.7% before the open, after the Wall Street Journal reported the social media giant's ad rates dipped by 25% last month. Also weighing on FB is a price-target cut to $230 from $260 at Canaccord Genuity, although the stock on Thursday marked its highest close in a month. 
  4. The shares of Macy's Inc (NYSE: M) are up 3.6%, after reports the company hired investment bank Lazard to explore strategies to raise finances. The retail stock started off April being booted from the S&P 500, and hit a record low of $4.38 on April 2. 
  5. Traders will return from the long Easter weekend to a quiet Monday, with no economic data on tap and no corporate earnings reports of note. 

Buzz Chart April 13

OPEC News Weighs on Asian Markets

Asian markets ended lower on Monday, dampened by news of OPEC and its allies’ latest production cut. The Nikkei in Japan suffered the biggest losses, down 2.3% -- dragged lower by retail bigwig FamilyMart, while South Korea’s Kospi shed 1.9%, and the Shanghai Composite in China lost 0.5%. Hong Kong’s Hang Seng was closed for holiday.

European stocks are closed in observance of the Easter holiday. 

 

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