Stock Futures Sink as Earnings, Retail Sales Weigh

Retail sales fell by a record 8.7% in March

Managing Editor
Apr 15, 2020 at 9:14 AM
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The roller-coaster week is set to continue, with Dow Jones Industrial Average (DJI) futures pointing to a sharp triple-digit drop. Investor jitters are at an all-time high, as earnings reports trickling in start to signal the impact of the coronavirus outbreak on the economy. Banking blue chip Goldman Sachs (GS) is a notable laggard, after whiffing on its first-quarter report.

Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also stuck in the red, extending their losses after March retail sales fell by a larger-than-expected 8.7%. Also of note, the Empire State Manufacturing Index for April is showed a historic drop of -78.2. Oil prices are under pressure well, with June-dated crude futures down 2.2% at $19.66 per barrel, at last check.

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

  • Schaeffer's Senior Quantitative Analyst Rocky White breaks down the best sectors for contrarian traders.
  • This biotech stock just ran up to a historically bearish trendline.
  • Plus, Goldman rates Tesla a "buy;" P&G pushes up earnings; and Bank of America eyes post-earnings slippage.

Stock Futures April 15

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.2 million call contracts traded on Tuesday, and 722,777 put contracts. The single-session equity put/call ratio fell to 0.58, and the 21-day moving average slid to 0.74.
  2. Tesla Inc (NASDAQ:TSLA) stock is up 6.1% ahead of the bell, after Goldman Sachs initiated a "buy" rating and price target of $864 on the electric car company. The analyst in coverage predicts long-term secular growth. Separately, Tesla's car registrations in China surged in March. TSLA is fresh off its highest close in a month, and is up 70% in 2020 heading into today.
  3. Procter & Gamble Co (NYSE:PG) stock is up 1% before the open, after the consumer products powerhouse announced a quarterly dividend increase of 6%, while moving its third-quarter earnings release date up to this Friday, April 17. The company did warn that the decision should not be interpreted as a positive or a negative. PG is up 10% in April.
  4. The shares of Bank of America Corp (NYSE:BAC) are down 3.1% in electronic trading, after the company reported first-quarter earnings below analyst estimates. Revenue was in line with forecasts, while profit was halved year-over-year. Earlier this week, BAC --which is down 32% year-to-date -- was stymied by a key trendline.
  5. It gets busy today with industrial production data, business inventories, and the Fed's Beige Book all slated for today. On the earnings front will be UnitedHealth (UNH), Aphria (APHA), Bed Bath & Beyond (BBBY), Citigroup (C), Las Vegas Sands (LVS), Morgan Stanley (MS), PNC (PNC), and Progressive (PGR). 

Buzz Chart April 15

IMF Warning Weighs on Global Economy

Asian markets were lower amid a warning from the Washington-based International Monetary Fund (IMF) that the global economy is set for its biggest financial crisis since the Great Depression. The Hang Seng in Hong Kong dropped 1.2%, the Shanghai Composite in China shed 0.6%, and the Nikkei in Japan took a 0.5% haircut. The South Korean Kospi was closed for legislative elections. 

The IMF’s comments have sparked selling in European markets, too, even as some coronavirus-related restrictions begin to lift. At midday, the German DAX and the French CAC 40 are both down 2.2%, while the London FTSE 100 is 2.3% lower. 

 

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