Stock Futures Fall Alongside Retail Sales

Retail sales plunged over 16%, hurtling past the expected 12.3% decline

Deputy Editor
May 15, 2020 at 9:20 AM
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Yesterday's huge comeback is already in the rear-view mirror, with Dow Jones Industrial Average (DJI) futures pointed sharply lower this morning after retail sales plunged to a new record-low of 16.4%, handily worse than the estimated 12.3% drop. Futures on the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also set to open below fair value, as trade tensions with China intensify amid reports the U.S. Commerce Department is moving to block semiconductor shipments to controversial Chinese giant Huawei. State-run Chinese publications have said that should the Trump administration move forward with the block, retaliation against U.S. companies could occur.

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

  • DAL bottoms out as it retires Boeing 777 aircraft. 
  • This REIT is flashing a bullish signal.
  • Plus, cannabis specialist jumps post-earnings; Dillard's plans to reopen stores next week; and Nike warns of financial hit. 

Stock Futures Chart May 15

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.3 million call contracts traded on Thursday, and 862,385 put contracts. The single-session equity put/call ratio fell to 0.64, and the 21-day moving average rose to 0.62.
  2. Aurora Cannabis Inc (NYSE:ACB) is up 32.2% before the market open after the cannabis specialist reported a smaller-than-expected quarterly loss. While sales jumped 39% year-over-year, the equity faces a 72.5% year-to-date deficit. 
  3. Dillard's, Inc. (NYSE:DDS) reported a smaller loss than Wall Street estimates for the first quarter, and the retailer plans to reopen 116 stores and five clearance centers next week. In response, Deutsche Bank and Telsey have upped their price targets to $19 and $30 respectively, while Wedbush trimmed its own target to $19 from $25. Despite sitting down 68.6% from a year ago, shares are up 6.2% ahead of the market open. 
  4. Down 1.5% before the open, Nike Inc (NYSE:NKE) the retail giant warned of a fourth-quarter financial hit with a slim percentage of its stores open globally. NKE is down 14.5% year-to-date, but a short-term floor has emerged at the $84 level.
  5. Today will feature industrial production, the Job Opening and Labor Turnover Survey (JOLTS), consumer sentiment index, and the Empire State manufacturing index. Lastly, and V.F. Corp (VFC) will report earnings.

Buzz Chart May 15

Overseas Markets Unpack Economic Data Deluge

 Stock in Asia were mixed today, following economic data showing China’s year-over-year industrial output rose 3.9% in April – the first expansion of the year. Nevertheless, China’s Shanghai Composite closed 0.1% lower as retail sales fell 7.5%, more than the estimated 7% decline. Meanwhile, Hong Kong’s Hang Seng dropped 0.1%. Elsewhere, the Kospi in South Korea notched a 0.1% win, while Japan’s Nikkei paced the region with a 0.6% gain.
In Europe, shares are higher so far, as investors look ahead toward euro zone gross domestic product (GDP) data coming out later today. The German DAX is up 1%, alongside news that coronavirus transmission rates remained below the key threshold of 1 after the country’s initial steps to reopen. Elsewhere, the French CAC 40 is up 0.1%, and London’s FTSE 100 has added 0.9%. 

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