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Stock Futures Climb as Economy Reopens

Wall Street is brushing off shaky inflation data this morning

Deputy Editor
May 12, 2020 at 9:24 AM
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Dow Jones Industrial Average (DJI) futures are pointing towards a small rise this morning, as investors evaluate the attempts to reopen the economy. At 10 a.m ET, director of the National Institute of Allergy and Infectious Diseases Dr. Anthony Fauci will testify before the Senate Health Committee to offer a prognosis on easing lockdowns.

Gains are climbing despite the U.S. consumer price index falling by 0.8% in April, on par with expectations but the sharpest drop since 2008. Meanwhile, futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are on the way up as well, while oil prices signal a miniature rally, with June-dated crude futures up 5.8% at $25.41 per barrel, at last check.

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

  • Schaeffer's Senior V.P. of Research Todd Salamone breaks down the SPX levels to watch during expiration week.
  • There's been a surge in call options for Roku stock.
  • Plus, Casper Sleep ekes out revenue beat; Eventbrite stock rally set to stall; and Hyatt Hotels lays off staff.

Stock Futures Chart May 12

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.3 million call contracts traded on Monday, and 658,246 put contracts. The single-session equity put/call ratio slid to 0.50, and the 21-day moving average remained at 0.61.
  2. Casper Sleep Inc (CSPR) stock is up 3.8% ahead of the open, after the sleep product retailer reported better-than-expected revenue, as well as sales estimates that topped forecasts. CSPR was up 84.1% for the quarter going into today.
  3. Eventbrite Inc (NYSE:EB) stock is down 5.2% in electronic trading, after the company's first-quarter losses were much wider than anticipated as the coronavirus pandemic has lead to a decrease in live events. EB has taken a 48% haircut in 2020, but was up 24% in the last 30 days.
  4. Hyatt Hotels Corporation (NYSE:H) will lay off 1,300 workers at locations around the world, as the coronavirus pandemic slices into travel demand. Now down 6% ahead of the open, the hotel chain is also cutting salaries for workers, board members and senior management. 
  5. Momentum will pick up today with the Fed budget, as well as with data from the Core Consumer Price Index (CPI) and NFIB Small-Business Index. On the earnings agenda for the day are 8x8 (EGHT), Allegiant Travel (ALGT), Duke Energy (DUK), Honda Motor (HMC), and Intelsat (I).

Buzz Chart May 12

Easing Lockdowns Worry Overseas Stocks

Stocks in Asia finished lower today, as easing coronavirus lockdowns cause an increase in cases. Markets are also dinged by lackluster economic data out of China, where the consumer price index and auto sales for April both whiffed on expectations, with the former weighed down by falling food prices, China’s Shanghai Composite and Japan’s Nikkei both fell 0.1%, while the Kospi in South Korea found a 0.7% loss. Hong Kong’s Hang Seng dropped the furthest, closing down 1.5%.

In Europe, shares are having a volatile day, with investors playing close attention to countries reopening their economies amid possible new coronavirus cases. At last check, London’s FTSE 100 is up 0.9% and the German DAX up 0.3%, shaking off a post-earnings plunge from industrial giant Thyssenkrupp. Rounding out the region, the French CAC 40 is down 0.4%. 

 

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