Dow Futures Rise Amid Stimulus Talks, Tech Keeps Climbing

Microsoft shares rose after announcing it's in talks to buy TikTok

Deputy Editor
Aug 3, 2020 at 9:24 AM
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Futures on the  Dow Jones Industrial Average (DJI) are pointing higher this morning, last seen up just over 150 points, as investors focus on additional COVID-19 stimulus measures. Lawmakers are at a standstill on the issue, with the key debate separating the two parties boiling down to the federal boost in unemployment assistance. Meanwhile, Eli Lilly (LLY) announced it would begin phase 3 trials of a coronavirus prevention treatment. 

Futures on the Nasdaq-100 Index (NDX) are rising as well, led by a rise in the shares of major tech companies. Leading the way is Microsoft (MSFT) after confirming news that it was in talks to purchase popular social video app TikTok. Apple (AAPL), Amazon (AMZN), and Facebook (FB) are still rallying off last week's impressive earnings lineup.

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

  • The social media stock that scaled the New York Stock Exchange last Friday.
  • A look at 3 stocks options traders need to target right now. 
  • Plus, McKesson is higher after promising earnings; Tyson stock names new CEO; and Marathon is surging after announcing it will sell Speedway.

OV Futures Chart Aug 3

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw over 1.8 million call contracts traded on Friday, and 987,915 put contracts. The single-session equity put/call ratio fell to 0.54, and the 21-day moving average stayed at 0.47.
  2. Drug distributor McKesson Corporation (NYSE:MCK) is higher this morning, last seen up 4.5% after posting fiscal first-quarter earnings and revenue that exceeded analysts' estimates. The company raised it full-year outlook, and said volume across its businesses rebounded sooner than expected.
  3. Tyson Foods, Inc. (NYSE:TSN) is making moves this morning, up 1.7% in electronic trading, after posting fiscal third-quarter earnings that beat Wall Street's expectations. Revenue, meanwhile, came up short, as beef and pork sales dropped dramatically. In other news, Tyson named Dean Banks as the new CEO, effective October 3.
  4. Marathon Petroleum Corp (NYSE:MPC) is up 6% ahead of the bell, surging after announcing it will sell its Speedway chain to 7-11 parent Seven & I Holdings for $21 billion in cash. Meanwhile, Marathon posted a second-quarter loss that was smaller than analysts' estimates, and revenue that missed the mark. 
  5. The week will start out with the Markit manufacturing purchasing managers index (PMI) and the ISM manufacturing index. Meanwhile, Clorox (CLX), Tyson Foods (TSN), and Virgin Galactic (SPCE) will step into the earnings confessional. 

Buzz Chart Aug 3

TikTok Purchase Props Up Asian Markets; European Stocks Rise on Economic Data

Stocks in Asia were mostly higher, though the Chinese-owned app TikTok was threatened to be banned in the U.S. by President Donald Trump, but is now in talks to be bought by Microsoft (MSFT). China’s Shanghai Composite jumped 1.8% following positive economic data from the country’s manufacturing and Caixin/Markit manufacturing Purchasing Manager’s Index (PMI). Other winners, Japan’s Nikkei added 2.2%, while the Kospi in South Korea added 0.07%. Elsewhere, Hong Kong’s Hang Seng dropped 0.6%.

In Europe, shares are on the rise today after the most recent IHS Markit manufacturing PMI showed that manufacturing activity expanded in Europe for the first time since early 2019. Investors are also eyeing a round of earnings. At last check, London’s FTSE 100 is up 1.1%, the French CAC 40 has risen 1.2%, and the DAX in Germany has gained 2.2%.

 

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