Dow Futures Fall as Weekly Jobless Claims Weigh

Concern over a second coronavirus wave is spreading

Assistant Editor
Jun 18, 2020 at 9:10 AM
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Futures on the Dow Jones Industrial Average (DJI) are down over 200 points this morning, after weekly jobless claims topped estimates and stayed above 1 million for the 13th consecutive week. First-time claims came to 1.5 million last week, higher than analysts' expected 1.3 million. Nasdaq-100 Index (NDX) and S&P 500 (SPX) futures are also in the red, as travel and airline stocks remain grounded by the increase in coronavirus cases in the U.S. and around the world. However, China's chief epidemiologist has declared its own latest outbreak as "under control."

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

  • A look at KR's levels of support before this morning's earnings. 
  • This software stock could extend its rally of record highs. 
  • Plus, Spotify rises on a podcast deal, and Jefferies doles out price-target hikes to two automakers.

stock futures June 18

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.4 million call contracts traded on Wednesday, and 701,375 put contracts. The single-session equity put/call ratio rose to 0.51, and the 21-day moving average rose to 0.50.
  2. Spotify Technology USA (NYSE:SPOT) is up 2.3% before the bell, after it was announced that the music streaming service has made a deal with Kim Kardashian West for a criminal justice podcast. Looking to extend yesterday's record high of $199.99, SPOT is up 33% year-to-date with support at the 20-day moving average. 
  3. Ford Motor Company (NYSE:F) is down 0.5% in electronic trading, despite a price-target hike to $7.50 from $6 at Jefferies. The automaker also announced its own hands-free driving feature will be available in 2021. F is up 31% for the quarter, and has support in place at its 20-day moving average.
  4. Tesla Inc (NASDAQ:TSLA) is up 0.8% pre-market after Jefferies raised its price target all the way to $1,200 from $650 per share, citing that TSLA is ahead of the race with competitors in terms of both product and battery technology. So far in 2020, Tesla stock has doubled, nabbing an all-time high of $1,027.48 on June 10.
  5. Today will bring the Philly Fed manufacturing index and May's leading economic indicators. Smith & Wesson Brands (SWBI) will report earnings.

Buzz Chart June 18

Stocks Fall in Europe, Asia

Stocks in Asia finished mostly lower today, as investors continued to analyze the potential impact that the recent surge in coronavirus cases could have. Additionally, the Asian Development Bank (ADB) said that developing Asia will “barely grow” in 2020. As a result, China’s Shanghai Composite tacked on 0.1%, while South Korea’s Kospi and Japan’s Nikkei were off 0.4% and 0.5%, respectively. Elsewhere, Hong Kong’s Hang Seng finished 0.07% lower, despite a surge in shares of Chinese e-commerce company JD.com (JD).

European stocks are also falling today, amid news that the Bank of England (BoE) expanded its bond-buying program while also holding interest rates at 0.1%. France’s CAC 40 is down 1.5%, while the German Dax was last seen down 1.2%, after Wirecard (WDI), a German payments company, fell around 55% after once again delaying its 2019 financial report. Lastly, London’s FTSE 100 is down 1%.

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