Wall Street could still be smarting from Friday's historic jobs report
Dow Jones Industrial Average (DJI) futures are stuck in the red to begin the week, as plans to reopen the economy are met with concern over new COVID-19 cases. Investor jitters are being stoked by spiking infections in South Korea, after a second wave of the coronavirus hit once the country started to reopen its economy. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are signaling a move below fair value too, with Friday's economic data also likely still weighing on Wall Street.
Continue reading for more on today's market, including:
- This cosmetics name just entered the earnings confessional.
- A massive debt offering sent GM stock higher last week.
- Plus, oil company near bankruptcy; two chipmakers eye new factories; and United Airlines grounded by new COVID-19 cases.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.7 million call contracts traded on Friday -- the most since 2012 -- and 883,502 put contracts. The single-session equity put/call ratio slid to 0.53, and the 21-day moving average fell to 0.61.
- Energy producer Chesapeake Energy Corporation (NYSE:CHK) announced that it is evaluating strategic alternatives, including Chapter 11 of bankruptcy code. The equity was last seen down 4.7% ahead of the open, set to add to its 91% year-to-date loss.
- Intel Corporation (NASDAQ:INTC) and Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) are both up 1% before the bell, after it was reported the chip makers are in talks with the Trump administration regarding the construction of new factories in the U.S. Both Intel stock and TSM are up over 20% year-over-year.
- The shares of United Airlines Holdings Inc (NASDAQ:UAL) are down 3.7% in electronic trading, as airline stocks fall amid concerns over fresh coronavirus cases. UAL is facing a 71% year-to-date deficit, but has distanced itself from its March 18 lows of $17.80.
- The week kicks off on a slow note, with no notable economic reports. Bluebirdbio (BLUE), Cardinal Health (CAH), Cleveland-Cliffs (CLF), Logitech (LOGI), Mylan NV (MYL), and Tilray (TLRY) will report earnings.
Asian Stocks Mixed, European Markets Struggle With Second COVID-19 Wave
Stocks in Asia were a mixed bag on Monday, as traders brushed off dismal April jobs data out of the U.S. Among the winners, Hong Kong’s Hang Seng had the best day with a 1.5% surge, while Japan’s Nikkei tacked on 1.1%. China’s Shanghai Composite lost 0.02%, as Disney reopened its Shanghai theme park with social distancing rules. Elsewhere, the Kospi in South Korea finished the day down 0.5%.
In Europe, shares are struggling amid fears of a second coronavirus wave. Yesterday, U.K. Prime Minister Boris Johnson announced a tentative plan to ease lockdowns, sending London’s FTSE 100 down 0.3%. Meanwhile, the French CAC 40 has dipped 1.6%, and the DAX in Germany has lost 1.3% midday.