Stock Futures Set to Soar for Second Straight Day

Airlines and cruise lines are big movers today

Jake Scott
May 27, 2020 at 9:18 AM
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After a hot start to begin the holiday-shortened week,  Dow Jones Industrial Average (DJI) futures are soaring once again, as investor optimism builds surrounding the reopening of the economy. Shares of airlines and cruise lines lead the premarket gains, as various states begin to roll back lockdown restrictions put in place to combat the coronavirus outbreak. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are significantly above fair value as well, although is Wall Street monitoring mounting U.S.-China tensions, as the Trump administration weighs sanctions against the superpower for its new Hong Kong laws.

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

  • AutoZone stock is higher after a positive earnings report.
  • Bear comments from its CEO send bulls flocking to Deutsche Bank. 
  • Plus, Boeing up again; Domino's demand dips; and Trump takes on Twitter.
Stock Futures Chart May 27

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.7 million call contracts traded on Tuesday and 841,084 put contracts. The single-session equity put/call ratio fell to 0.50, and the 21-day moving average remained at 0.59.
  2. Boeing Co (NYSE:BA) is up 3.3% during pre-market trading, after union officials confirmed the jet maker plans to announce 2,500 voluntary layoffs this week, the first phase of broader layoffs that the company said will amount to about 10% of its total workforce. Boeing stock is looking to comeback from a 55.6% year-to-date deficit.
  3. Domino's Pizza, Inc. (NYSE:DPZ) stock is up 1.6% in electronic trading, after announcing a rebound  in demand for the first eight weeks of the current quarter. In response, three brokerages upped their price targets, the highest coming from Guggenheim to $415. Domino's stock is up 22% in 2020. 
  4. Twitter Inc (NYSE:TWTR) is down 2.2% ahead of the open, after the company announced it has implemented fact-checking technology to tweets sent out by U.S. President Donald Trump, doing so for the first time when the president posted two tweets in regard to the alleged fraud related to mail-in ballots. Twitter's policies to combat misinformation have led to a 38.5% gain for the quarter for the social media stock
  5. The Beige book will be the only data on tap today. The earnings docket is full; GOOS, HP Inc (HPQ), NetApp (NTAP), Ralph Lauren (RL), PVH (PVH), Toll Brothers (TOL), and Workday (WDAY) will all report.

Buzz Chart May 27

Hong Kong Tensions Weigh on Asian Markets, European Stocks Lifted by EU Measures

Stocks in Asia were mixed today, after tensions continue to rise between the U.S. and China over the latter’s proposed security laws in Hong Kong, as well as increased protests in the area. White House press secretary Kayleigh McEnany says “it’s hard to see how Hong Kong can remain a financial hub” if Beijing imposes these laws. China’s Shanghai Composite lost 0.3% for the day, while Hong Kong’s Hang Seng dropped 0.4%. Elsewhere, the Kospi in South Korea gained 0.1 %, and Japan’s Nikkei pared earlier losses to finish 0.7% higher. 

In Europe, stocks are moving higher amid news that the European Union (EU) will announce a €750 billion ($825 billion) stimulus program for coronavirus recovery efforts. In response, the German DAX is up 2%, the French CAC 40 has risen 1.9%, and London’s FTSE 100 has tacked on 1.4%. 


 

 


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