Stock Futures Grounded With Airline Sector

Warren Buffett's Berkshire Hathaway dumped all of its airline sector holdings

Managing Editor
May 4, 2020 at 9:25 AM
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Dow Jones Industrial Average (DJI) futures are poised to open the week with a triple-digit move below fair value. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also bracing for sharp losses, as investors eye a crumbling airline sector, grounded after Warren Buffett's Berkshire Hathaway dumped all of its airline sector holdings. Wall Street is also wary of a newly developing rift between the U.S. and China, as officials from the two superpowers trade barbs over the origins and handling of the coronavirus.

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

  • Chevron stock couldn't capitalize on an earnings beat last week.
  • The same could be said for this makeup retailer.
  • Plus, Tyson Foods reports earnings whiff; Disney downgraded; and GM hurt by weak April auto sales.

Stock Futures Chart May 4

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.3 million call contracts traded on Friday, and 1.1 million put contracts, the most since March 13. The single-session equity put/call ratio rose to 0.82, and the 21-day moving average remained at 0.64.
  2. Tyson Foods, Inc. (NYSE:TSN) stock is down 7.1% ahead of the open, after the meat producer reported fiscal second-quarter earnings and revenue that missed analyst expectations. The company said it is unsure how long the impact of the COVID-19 pandemic will have on demand. TSN was down 34% year-to-date going into today.
  3. Walt Disney Co (NYSE:DIS) stock is down 2.8% before the open today, after Moffett Nathanson downgraded the blue-chip name to "neutral" from "buy," citing the economic pressures of the coronavirus. Disney stock has taken a 21% haircut in the last 12 months, but is up 11% in the last month. 
  4. The shares of General Motors Company (NYSE: GM) are down 2.4% in electronic trading, after AutoData reported a 48% year-over-year drop in car sales last month, dropping to its lowest recorded rate. General Motors stock is down almost 43% year-to-date, but has distanced itself from the March 18 record low of $14.32.
  5. The week starts off slow with factory orders. Avis Budget (CAR), Pitney Bowes (PBI), Shake Shack (SHAK), and Skyworks (SWKS) will report earnings. 

Buzz Chart May 4

Roiling U.S.-China Tensions Weigh on Stocks Overseas

Most markets in Asia were closed on Monday, with China, Japan, and Thailand’s closed for holiday. Tensions between the U.S and China weighed, with U.S. Secretary of State Mike Pompeo echoing U.S. President Donald Trump on Sunday, saying that China will be held accountable for coronavirus. Of those who were open, Hong Kong’s Hang Seng fell 4.2%, while the South Korean Kospi fell 2.7%.

Europe markets are feeling the global strain of these tensions as well, with the exception of London’s FTSE 100 marking an 0.8% gain. Elsewhere, activity in the euro zone’s manufacturing sector weighed, sending the French CAC 40 down 3.5%, and the DAX in Germany 3.2% lower.



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