Stock Futures Slide as Oil Sells Off

Demand concerns have crippled oil prices and energy stocks this morning

Managing Editor
Apr 20, 2020 at 9:23 AM
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Fresh off a sizable weekly win, Dow Jones Industrial Average (DJI) futures are poised to give back a large chunk of last week's gains this morning. Stocks look ready to fall in concert with oil prices, which plummeted over the weekend amid concerns over demand outlook during the coronavirus outbreak. At last check, June-dated crude futures were down 36.1% to trade at $11.67 per barrel.

Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are firmly in the red as well, although lawmakers in Washington D.C. are nearing a consensus regarding a second round of small business loans, and New York governor Andrew Cuomo noted yesterday that the state is "past the high point" in new coronavirus cases.

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

  • "Big Blue" steps into the earnings confessional tonight.
  • See what had Gilead Sciences stock soaring on Friday.
  • Plus, PepsiCo's Rockstar deal gets FTC nod; Halliburton stock drops post-earnings; and WYNN CEO calls for mid-May re-opening of Las Vegas strip.

Stock Futures Chart April 20

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.4 million call contracts traded on Friday, and 859,463 put contracts. The single-session equity put/call ratio rose to 0.60, and the 21-day moving average dropped to 0.68.
  2. PepsiCo Inc. (NYSE:PEP) is in focus today, after the company's purchase of Rockstar Energy Beverages was approved by the Federal Trade Commission (FTC). The $3.9 billion deal should close in the next few days. PEP has been battling its year-to-date breakeven level in recent weeks. 
  3. Halliburton Company (NYSE:HAL) stock is down 8.4% in electronic trading. Although the oil producer reported first-quarter earnings and revenue that topped analyst forecasts, the company warned that oversupply and dwindling demand will lead to current-quarter production decline. Halliburton also reported a $1.1 billion in impairment charges for the first quarter. HAL is down 69% going into today.
  4. The shares of Wynn Resorts, Limited (NASDAQ:WYNN) are down 3.2% before the open, after CEO Matt Maddox called for a mid-May reopening of the Las Vegas strip, albeit with safety precautions in place. A price-target cut to $87 from $117 at Instinet is weighing on the stock, which is currently down 43% in 2020.
  5. The Chicago Fed national activity index is the only thing on tap for economic data today. Meanwhile, Visa (V), American Airlines (AAL), Cadence Design Systems (CDNS), and Steel Dynamics (STLD) will report earnings

Buzz Chart April 20

Oil Weighs on Overseas Trading, Too

Asian markets ended mostly lower on Monday, with the exception of the Shanghai Composite in China, which added 0.5% after the country cut its benchmark lending rates. Elsewhere in the region, the Hong Kong Hang Seng dropped 0.2%, the South Korea Kospi suffered a 0.8% loss, and the Nikkei in Japan shed 1.2%. 

Over in Europe, investors are eyeing U.S. oil prices’ dramatic plunge and a slew of economic data. Specifically, the euro zone’s trade surplus surged to 23 billion euros, or $25.1 billion, for February, and HIS Markit announced that a third of households in the U.K. had already suffered an income drop. In response, the London FTSE 100 is down 1.2%, the French CAC 40 has shed 1.4%, and the German DAX is 1.5% lower. 

 

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