Collapsing Oil Prices Weigh on Stock Futures

May-dated crude futures are still in negative territory

Patrick Martin
Apr 21, 2020 at 9:12 AM
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After a dismal start to the week, Dow Jones Industrial Average (DJI) futures are pointed sharply lower again this morning. The historic collapse of oil prices has rattled investors everywhere, with expiring May-dated crude futures sitting in negative territory last seen at -$4.00 per barrel. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are poised to extend their slide as well, as investors look to a full slate of corporate reports today while monitoring political gridlock in Washington D.C. over the next small business loan bill.

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

  • Schaeffer's Senior V.P. of Research Todd Salamone lays out several technical hurdles ahead for the SPX.
  • See why Walmart stock took a breather yesterday.
  • Plus, Lockheed Martin scores top-line beat; bear notes galore for FB; and Beyond Meat launches with Starbucks in China.

Stock Futures Chart April 21

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.1 million call contracts traded on Monday, and 619,082 put contracts. The single-session equity put/call ratio fell to 0.55, and the 21-day moving average dropped to 0.67.
  2. Lockheed Martin Corporation (NYSE:LMT) stock is up 1.1% in electronic trading, after the defense contractor reported first-quarter earnings and revenue that topped analyst forecasts. LMT is facing off with its year-to-date breakeven point, but is up 22% in the last 12 months.
  3. Facebook Inc. (NASDAQ:FB) stock is down 1.4% before the open, after three price-target cuts this morning. Raymond James trimmed its price target to $215 from $270, Deutsche Bank cut its target to $200 from $280, and Mizuho trimmed its price to $220 from $240. Facebook stock was up 19% in the last month, but was running headfirst into resistance at its 50-day moving average.
  4. The shares of Beyond Meat Inc (NASDAQ:BYND) look ready to buck the broad-market selloff, last seen up 10.6% ahead of the bell. This comes after Starbucks (SBUX) has decided to launch Beyond Meat's products on its menu's in China on Wednesday. BYND is up 19% this quarter.
  5. Brings existing home sales, and earnings from Chipotle Mexican Grill (CMG), Fifth Third Bank (FITB), JetBlue Airways (JBLU), Netflix (NFLX), Snap Inc (SNAP), and Travelers (TRV).

Buzz Chart April 21

Oil Drags Overseas Markets Across the Board

Asian stocks suffered even more losses today, as investors monitor sinking oil prices in the U.S. and the speculative news that North Korean leader Kim Jong Un is in grave danger after undergoing surgery. The Hong Kong Hang Seng dropped 2.2%, Japan’s Nikkei shed 2%, China’s Shanghai Composite lost 0.9%, and the South Korean Kospi ended 1% lower. 

European markets are badly affected by the plummet in crude futures as well. The London FTSE 100 is down 2.2% as traders pore over sluggish growth in U.K. employment figures for March – a direct effect of the pandemic. Meanwhile, the French CAC 40 is off 2.8%, and the German DAX is down 3.1%. 


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