Dow Futures Take a Breather, Travel Stocks Stall

Dow futures are down over 300 points

Deputy Editor
Jun 9, 2020 at 9:22 AM
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Futures on the Dow Jones Industrial Average (DJI) are more than 300 points below fair value this morning, pausing the speedy rebound that has defined June so far. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also hovering in the red before the bell, as airline and cruise stocks -- recent champions of the market rally -- take a breather. Investor eyes will now turn to the two-day Federal Open Market Committee (FOMC) meeting that kicks off later today. Elsewhere, oil prices are extending their pullback, with July-dated crude futures off by 0.8% at $37.88 per barrel.

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

  • A caution flag is waving for short-term equity option traders, according to Schaeffer's Senior V.P. of Research Todd Salamone.
  • Movie theater stock boosted ahead of earnings later today.  
  • Plus, Boeing stock pauses rally, Coupa drops despite an upbeat quarterly report, and HDS bucking broad-market breather. 

Stock Futures Chart June 9

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 2.7 million call contracts traded on Monday, and 1 million put contracts. The single-session equity put/call ratio stayed at 0.4, and the 21-day moving average fell to 0.51.
  2. The shares of Boeing Co (NYSE:BA) are down 2% before the bell, despite a price-target hike from Benchmark to $260 from $180. The aerospace stock wrapped up its sixth-straight win yesterday, and is up 72.2% in the last month, but remains down 29% year-to-date.
  3. Coupa Software Inc (NASDAQ:COUP) stock is down 4.4% in electronic trading, though the company reported fiscal first-quarter earnings and revenue that both exceeded analyst estimates. Coupa also gave an optimistic current-quarter and full-year guidance, so today's signaled move lower could be attributed to the broad-market pullback. In response to the blowout report, 10 brokerages have upped their price targets, including to $255 from $136 at Needham. COUP is up 50% in 2020.
  4. HD Supply Holdings Inc (NASDAQ:HDS) is up 4.2% in pre-market trading, after the company's fiscal first-quarter earnings and revenue beat analyst expectations. The industrial distributor also implemented a hiring freeze, reduced salaries, and furloughed some current associates. HDS is up 11.5% in the last week, and is set to face off with its 200-day moving average today.
  5. Today, Chewy (CHWY) and Signet Jewelers are posting quarterly reports. Investors will keep a close eye on the Job Openings and Labor Turnover Survey (JOLTS), as well as wholesale inventories data and the NFIB small business optimism index. 

new Buzz Chart June 9

Europe's Stock Rally Flinches Too

Stocks in Asia were mostly higher today, as investors remained optimistic amid the easing of coronavirus lockdown measures. Leading the charge was Hong Kong’s Hang Seng after it tacked on 1.1%, capturing its longest winning streak in 14 months. Meanwhile, China’s Shanghai Composite added 0.6%, and South Korea’s Kospi rose 0.2%. Japan’s Nikkei, on the other hand, backpedaled 0.4%.

Stocks in Europe are off today, as investors analyze the prospects of post-coronavirus economic recovery; however, market optimists pointed toward improving economic signals such as last week’s upbeat jobs report in the U.S. London’s FTSE 100 is making the most noise, last seen down 1.5%. Additionally, the German DAX also 1.5% lower, while France’s CAC 40 is off 1.3%. 

 

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