Dow Futures Propped Up by Blue-Chip Earnings

Dow Jones Industrial Average (DJI) futures are trading comfortably higher this morning, propped up by upbeat results from blue-chips Johnson & Johnson (JNJ) and J.P. Morgan Chase (JPM), the former of which reported first-quarter profit and sales that topped estimates. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also climbing as investors unpack an improved cornavirus outlook. In New York City, where the COVID-19 outbreak is at its apex, Governor Andrew Cuomo said yesterday that the “the worst is over ... if we continue to be smart going forward.”

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

• Schaeffer's Senior V.P. of Research Todd Salamone revisits a key SPX trendline to watch.
• Puts are picking up speed on Delta Air Lines stock. 
• Plus, CHK announces reverse stock split; Quest Diagnostics furloughs workers; and Wells Fargo reports earnings.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw 940,293 call contracts traded on Monday, and 613,874 put contracts. The single-session equity put/call ratio stayed at 0.65, and the 21-day moving average slid to 0.76.
2. Chesapeake Energy Corporation (NYSE:CHK) stock is down 1.9% ahead of the bell, after the oil-and-gas issue announced a 1-for-200 reverse stock split. Shareholders also approved an authorized shares reduction, in an effort to boost liquidity and bring new investors to the table. CHK is down 94% in the last 12 months, and hit a record low of 12 cents on March 9.
3. Quest Diagnostics Inc (NYSE:DGX) -- which has performed roughly 40% of coronavirus testing -- furloughed temporary workers and announced pay cuts for others. DGX was up 1.6% in pre-market trading, but has since pared those gains. The shares' 40-day moving average has emerged as resistance during its 7.6% quarterly win.
4. The shares of Wells Fargo & Co (NYSE:WFC) are up 2.3% in electronic trading, after the banking concern reported first-quarter earnings of one cent, well below analyst expectations. While revenue also missed its mark, the company noted that the miss stems from “reserve build and an impairment of securities.” WFC is down 41.5% year-to-date going into today. 

5. Today will bring a muted economic calendar with just import and export price data on tap, though several names will ease Wall Street back into earnings season, including Fastenal (FAST), Infosys (INFY), and United Airlines (UAL).

Overseas Markets Join the Rally

Markets is Asian ended higher, led by the Nikkei in Japan which tacked on 3.1% as financial giant Softbank Group recouped its earlier losses, suffered after the firm predicted its Vision Fund to book a loss of 1.8 trillion yen (or $16.73 billion), for 2019. Meanwhile, the Hang Seng in Hong Kong added 0.6%, the South Korean Kospi surged, 1.7%, and the Shanghai Composite in China enjoyed a 1.6% gain, as traders looked at a better-than-expected 6.6% decline in exports for March.

A potential end to some coronavirus-related lockdown restrictions in several European countries, including Spain and Germany, has the major bourses higher midday.  The French CAC 40 is up 0.1%, the London FTSE 100 is up 0.6%, and the German DAX has added 1.5%.