Stock Futures in Rally-Mode as Black Gold Steadies

Congress passed another cornavirus relief package focused on small business

Managing Editor
Apr 22, 2020 at 9:19 AM
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Dow Jones Industrial Average (DJI) futures are signaling a rally this morning, taking cues from stabilizing oil prices. With the May contract now expired, June-dated crude futures have come off their 21-year low of $6.50, and were last seen at $11.25 per barrel. There's also optimism out of Washington D.C., after Congress last night approved a $484 billion coronavirus relief package focused on small businesses, hospitals, and testing efforts.

Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also pointing to strong gains at the open, as investors unpack a blowout earnings report from Netflix (NFLX). The FAANG name's new subscribers more than doubled estimates amid the widespread stay-at-home orders.

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

  • Schaeffer's Senior Quantitative Analyst Rocky White broke down the best SPX stocks since the February top.
  • Coca-Cola stock took a post-earnings breather.
  • Plus, Delta Air Lines climbs post-earnings; Chipotle touts online sales; and Chevron ordered out of Venezuela.

Stock Futures Chart April 22

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 966,836 call contracts traded on Tuesday, and 664,394 put contracts. The single-session equity put/call ratio rose to 0.69, and the 21-day moving average remained at 0.67.
  2. Delta Air Lines, Inc. (NYSE:DAL) stock is up 2.5% in electronic trading, after the airliner's first-quarter loss came in slimmer than expected. Although revenue fell below analyst expectations, the company said cheap fuel and cost reduction measures will cut expenses by nearly 50% in the second quarter. Delta stock is down 60% year-to-date, with overhead pressure at its 20-day moving average.
  3. Chipotle Mexican Grill Inc. (NYSE:CMG) stock is 6.4% higher ahead of the bell, after the restaurant chain reported first-quarter earnings that toppled Wall Street estimates. The company noted an 80% increase in online orders that helped soften the blow from the coronavirus impact. So far today, 10 brokerages have already issued price-target hikes, including to $950 from $780 at Cowen. 
  4. The shares of Chevron Corporation (NYSE:CVX) are in focus this morning, after the U.S. Treasury Department ordered the blue-chip oil producer to wind down its Venezuela operations by Dec. 1. Despite the recent collapse of oil prices, Chevron stock is up 12% in the last month.
  5. The economic calendar will host MBA mortgage applications today. On the earnings front will be Alcoa (AA), AT&T (T), Quest Diagnostics (DGX), Spirit Airlines (SAVE), and Tesla (TSLA).

Buzz Chart April 22

Stimulus Rumors Boost Asian Markets

Markets ended mostly higher in Asia, as investors continue to monitor declining oil prices. News that China advisers were calling for a quicker stimulus rollout helped bolster the Hong Kong Hang Seng and China’s Shanghai composite, which added 0.4% and 0.6%, respectively. Elsewhere in the region, the South Korean Kospi tacked on 0.9%, while the Japanese Nikkei, the only outlier, lost 0.7%. 

Markets in Europe are also shaking off plummeting oil prices on the possibility of easing lockdown measures, specifically in Italy -- one of the countries hit the hardest by the pandemic. The London FTSE 100 leading the charge with a 1.4% gain so far, while the French CAC 40 is up 0.4%, and the German DAX is 0.9% higher. 

Bernie's Best Stock Bets for Summer 2021

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