Stock Futures, Oil Ready to Bounce Back

Weekly jobless claims once more topped analyst expectations

Managing Editor
May 7, 2020 at 9:18 AM
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Dow Jones Industrial Average (DJI) futures are eyeing outsized gains this morning, seemingly ready to put yesterday's static trading in the rear view mirror. So far, Wall Street is pushing higher despite weekly jobless claims totaling 3.17 million, topping the expected 3.05 million, making it now eight straight weeks unemployment claims have surpassed economic forecasts. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also confidently above fair value, while oil prices are joining the rally, with June-dated crude futures up 9.8% at $26.38 per barrel, at last check.

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

  • Beyond Meat stock enjoyed a sizable post-earnings bump.
  • This real estate investment trust missed Wall Street's earnings prediction.
  • Plus, drug distributor comes up short; JBLU eyes earnings miss; and Moderna's COVID-19 vaccine candidate gets good news.

Stock Futures Chart May 7

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.2 million call contracts traded on Wednesday, and 716,988 put contracts. The single-session equity put/call ratio remained at 0.59, and the 21-day moving average stayed at 0.63.
  2. AmerisourceBergen Corp. (NYSE:ABC) is down 2.8% in electronic trading, despite the drug distributor reporting fiscal second-quarter earnings and revenue that exceeded Wall Street's estimates. ABC was up 10.4% year-over-year heading into today, while facing off with its year-to-date breakeven level.
  3. JetBlue Airways Corporation (NASDAQ:JBLU) is inching higher ahead of the bell, up 0.4% even after the airliner reported a wider-than-expected first quarter loss. No doubt afflicted by the coronavirus pandemic, the company also anticipates operating expenses will drop by about 50% by the end of May. JBLU has taken a 57% haircut in 2020 already.
  4. Moderna Inc (NASDAQ:MRNA) is up 12.8% before the open, after the company received phase 2 study approval from the Food and Drug Administration (FDA) for its COVID-19 vaccine candidate. Moderna expects mid-stage trials to begin shortly. MRNA is up 150% year-to-date prior to today.
  5. Due out today is data on productivity and unit labor costs. Anheuser Busch InBev (BUD), Hilton Hotels (HLT), JetBlue Airways, Moderna (MRNA), Teva Pharmaceuticals (TEVA), Uber (UBER), and Zillow Group (ZG) will throw their hats into the earnings ring.

Buzz May 7

Asian Markets Mixed, European Stocks Rise as Lockdowns Ease

Markets in Asia were mixed today as global coronavirus tensions and economic data continued to weigh. China reported a better-than-expected 3.5% rise in exports data for April, though imports dropped by 14.2% in the same time period, and the country’s Caixin/ Markit services Purchasing Manager’s Index (PMI) suffered its third-straight drop. Japan’s Nikkei returned from holiday with a 0.3% win. Meanwhile, Hong Kong’s Hang Seng dropped 0.7%, China’s Shanghai Composite fell 0.2%, and the Kospi in South Korea finished just below the breakeven with a 0.01% loss. 

In Europe, shares are higher midday, as the U.S. and many European countries slowly ease coronavirus lockdowns. London’s FTSE 100 is 1% higher following a decision by the Bank of England (BOE) to keep interest rates steady– though the central bank also warned of further economic distress due to the pandemic. Elsewhere, the French CAC 40 is up 1.1%, and the DAX in Germany is up 1%. 

 

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