Dow Futures Brush Off Lackluster Economic Data

Jobless claims topped expectations for the 11th straight week

Deputy Editor
May 28, 2020 at 9:18 AM
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 Dow Jones Industrial Average (DJI) futures are up once again -- over 200 points at last check -- despite a fresh batch of lackluster economic data. Weekly jobless claims once again topped analysts estimates for now the 11th straight week, with the 2.1 unemployment claims narrowly topping the 2.05 million expectations. Additionally, the revised fourth-quarter gross domestic product (GDP) fell by 5% last quarter, higher than the estimated 4.8% drop. Futures on the S&P 500 Index (SPX) are up slightly as well, while futures on the Nasdaq-100 Index (NDX) are well below fair value, as investors monitor China's controversial national security bill against Hong Kong. 

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

Stock Futures Chart May 28

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.7 million call contracts traded on Wednesday and 887,551 put contracts. The single-session equity put/call ratio rose to 0.51, and the 21-day moving average fell to 0.58.
  2. Dollar General Corp. (NYSE:DG) is up 1% before the bell, after the discount retailer reported earnings and revenue that exceeded expectations by analysts. Additionally, same-store sales jumped over 20%. Now up 56% year-over-year, DG said the pandemic actually had a significant positive impact on sales.
  3. HP Inc (NYSE:HPQ) stock is down 6% before the open. While the computer-maker beat Wall Street's profit estimates, revenue fell short of forecasts. HPQ stock is down 16% in 2020, running into overhead resistance at its 80-day moving average.
  4. Workday Inc (NASDAQ:WDAY) stock is up 6% in electronic trading, as the software name's first-quarter revenue beat overshadows its quarterly earnings miss. So far, 11 brokerages have issued price-target hikes, the highest coming from Mizuho to $220. WDAY is set to distance itself from its year-to-date breakeven level today, should the gains hold.
  5. Today also features durable goods orders and core capital goods data all being reported. Another packed day for earnings, a docket filled with big retail names is on the books. Abercrombie & Fitch (ANF), Canadian Solar (CSIQ), Costco, Dell (DELL), Dollar Tree (DLTR), GameStop (GME), Marvell Technology (MRVL), Nordstrom (JWN), (CRM), and ULTA will chime in.

Buzz Chart May 28

Overseas Markets Eyeing Hong Kong Situation

Asian markets were a mixed bag today, amid ongoing developments between China and Hong Kong. Hong Kong’s Hang Seng dropped 0.7%, as China’s National People’s Congress approved the new national security law for Hong Kong. U.S. Secretary of State Mike Pompeo announced that the Trump Administration no longer recognizes Hong Kong as autonomous from China, laying the groundwork for the U.S. to withdraw Hong Kong’s preferential trade and financial status. China’s Shanghai Composite added 0.3% today, while the Nikkei in Japan rose 2.3% thanks to a big day from Fast Retailing. Elsewhere, the Kospi in South Korea dropped 0.1% after the country reported 79 new coronavirus cases.  

In Europe, stocks are continuing yesterday’s rally on hopes surrounding the European Central Bank (ECB) stimulus plan and the global easing of lockdowns. Though investors still keep an eye on economic powerhouses China and the U.S., London’s FTSE 100 and the French CAC 40 have both tacked on 1.1% so far, while the German DAX has added 0.6%. 




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