Stock Futures Fall After Fed Stress Tests

However, U.S. consumer spending rose 8.2% for May

Assistant Editor
Jun 26, 2020 at 9:19 AM
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Futures on the Dow Jones Industrial Average (DJI) are nearly 200 points below fair value this morning, after yesterday's bank rally quickly lost steam overnight following the Fed's annual bank stress tests. The results showed that due to the COVID-19 pandemic, several financial institutions could get dangerously close to their minimum capital levels. The Fed has thus put in restrictions where banks must suspend share repurchases programs, keep dividend payments at current levels for the third quarter, and resubmit their payout plans again later this year.

Also weighing on Wall Street is a sub-optimal earnings report from retail giant Nike (NKE), which reported a surprise fiscal fourth-quarter loss. S&P 500 (SPX) and Nasdaq-100 (NDX) futures are hovering in the red as well, searching for optimism as the coronavirus continues to spike in various states, though an 8.2% climb in U.S. consumer spending for May could be paring some of these losses. 

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

    • Rite Aid stock found a two-month high after revenue beat yesterday. 
    • The drug stock on the receiving end of a price-target hike after another oncology collaboration
    • Plus, ACI begins trading on the New York Stock Exchange; DraftKings gets a "buy" rating; and the motorcycle king cutting U.S. jobs. 

    futures June 26

    5 Things You Need to Know Today

    1. The Cboe Options Exchange (CBOE) saw 1.3 million call contracts traded on Thursday, and 733,383 put contracts. The single-session equity put/call ratio fell to 0.54, and the 21-day moving average stayed at 0.50.
    2. Albertsons Companies Inc (NYSE:ACI) begins trading today on the New York Stock Exchange, yesterday announcing its initial public offering (IPO) of $16 per share. The IPO values the foot distributor at $9.3 billion.
    3. DraftKings Inc (NASDAQ:DKNG) is up 3.7% in electronic trading, after Rosenblatt Securities initiated coverage with a "buy" rating. The analyst in coverage glowed about the return of  live sports  and acceleration of gambling legislation. DKNG is up 237% in 2020.
    4. Harley-Davidson Inc (NYSE:HOG) is up 0.6% ahead of the bell, after news that the motorcycle giant is cutting 140 U.S. jobs following its decision to adjust production volumes. Petering off on the charts lately after being turned away by the $28 level, the stock is down 35.5% in the last six months.
    5. Today will bring personal income data, the University of Michigan's consumer sentiment index, and data on core inflation.

    Buzz Chart June 26

    European Stocks Brush Off U.S. COVID-19 Spike

    Stocks in Asia closed the week out mostly higher, though Hong Kong’s Hang Seng slipped 0.9%, after shares of Chinese tech giant Alibaba (BABA) fell nearly 3%. Conversely, Japan’s Nikkei tacked on 1.1%, thanks to a rise in Softbank Group stock. Meanwhile, South Korea’s Kospi also jumped 1.1%, and markets in China were closed for holiday.

    Surging coronavirus cases in the U.S. haven’t hindered stocks in Europe this afternoon. At last check, London’s FTSE 100 was up 1.7%, spurred by rising shares of industrial manufacturer, Rotork. Close behind is France’s CAC 40, last seen up 1.6%. Lastly, the German DAX is brushing off yesterday’s reveal of $2.1 billion missing from Wirecard’s (WDI) balance sheet, and is up 1.1%.


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