Dow Futures Flat Following Dramatic Selloff

The S&P and Nasdaq both snapped five-day win streaks yesterday

Digital Content Manager
Jul 8, 2020 at 9:05 AM
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Futures on the Dow Jones Industrial Average (DJI) are doing little to recuperate from last night's massive selloff, up marginally above fair value this morning. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also eyeing a muted open, after both indices snapped lengthy win streaks by Tuesday's close. This quiet morning on Wall Street comes as investors continue to monitor spiking coronavirus cases in the U.S., while the volatile travel sector takes another breather. 

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

  • The surprising move markets tend to make following a win streak, according to Schaeffer's Senior Quantitative Analyst Rocky White. 
  • United National Foods stock has pulled back to this historically bullish technical signal
  • Plus, one analyst vying for NKLA; BIIB takes big step with Alzheimer's drug; and VVUS sinks deeper into penny stock territory. 

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.35 million call contracts traded on Tuesday, and 604,745 put contracts. The single-session equity put/call ratio rose to 0.45, and the 21-day moving average stayed at 0.52. 
  2. The shares of electric truck maker Nikola Corporation (NASDAQ:NKLA) are up 8.1% at $43.60 after J.P. Morgan Securities upgraded the stock to "overweight" from "neutral," citing Nikola's attractiveness in the long-term while predicting several major developments from the company soon. The equity is set to snap a five-day losing streak , should these gains hold. 
  3. Biogen Inc (NASDAQ:BIIB) stock is up 8.1% at $29 before the open on news the drugmaker submitted a marketing application to the Food and Drug Administration (FDA) for its Alzheimer's treatment, aducanumab. The firm also requested priority review for the drug. As of yesterday's close, BIIB is facing off with its -10% year-to-date level.
  4. News that pharmaceutical name VIVUS Inc. (NASDAQ:VVUS) is filing for bankruptcy protection is annihilating the stock this morning. Ahead of the bell, VVUS is down 31.9%, set to hurtle past its July 6 record low of $0.76 . VVUS is down 70% in 2020.
  5. Today's economic calendar will bring the latest numbers on consumer credit, while Bed Bath & Beyond (BBBY) will enter the earnings confessional. 

OV Buzz Chart July 8

Overseas Markets Watch as U.S. Coronavirus Cases Pile Up

Stocks in Asia were mixed today, as growing concerns over the coronavirus pandemic slowed down buying enthusiasm that had driven prices higher. In China, the Shanghai Composite rose 1.7% and Hong Kong’s Hang Seng was 0.6% higher. But elsewhere, major markets saw losses. South Korea’s Kospi and Japan’s Nikkei dropped 0.2% and 0.8%, respectively. 

Across the pond, stocks continue to retreat as surging coronavirus cases in the U.S. and other parts of the world weigh on investors’ minds. At last check, the German DAX was down 0.7%, the London’s FTSE 100 was down 0.4%, and France’s CAC 40 was down 1%. 


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