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Stock Futures Modestly Higher After Third Week of Gains

The S&P continues to struggle to overtake its February high

Deputy Editor
Aug 17, 2020 at 9:21 AM
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Futures on the Dow Jones Industrial Average (DJI) are up modestly higher before the bell, after Wall Street reported its third-straight week of gains. Elsewhere, futures on the S&P 500 Index (SPX) are also seeing a marginal lift, just one session after the index finished 0.6% below its February intraday record high. Meanwhile, Nasdaq-100 Index (NDX) futures are hovering just above fair value as well, as lawmakers seemingly grow farther apart on stimulus discussions and U.S.-China tensions increase. Further concern surrounding lack of funding for the United States Postal Service (USPS) had House Democrats yesterday call an emergency hearing for Aug. 24 with the Postmaster General and Chairman.

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

  • DraftKings stock slipped despite revenue beat.
  • Sector peer's SEC investigation sent BIDU lower.
  • Plus, Barrick Gold stock is surging; BABA could face a ban in the U.S.; and Hertz stock falls after CFO resignation. 

Futures Chart August 17

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw over 1.5 million call contracts traded on Friday, and 853,169 put contracts. The single-session equity put/call ratio rose to 0.54, and the 21-day moving average stayed at 0.47.
  2. Barrick Gold Corp (NYSE:GOLD) is surging, up 10.2%, ahead of the open after the company became one of Warren Buffett's Berkshire Hathaway's (BRKB) newest investments. BRKB also cut its stakes in Wells Fargo (WFC) and JPMorgan Chase (JPM) during the quarter. Heading into today, GOLD was up 45% for 2020.
  3. A ban in the U.S. could be on the way for Alibaba Group Holding Ltd (NYSE:BABA), after U.S. President Donald Trump said that he's considering taking action against the China-based company alongside ByteDance's popular TikTok app. As a result, BABA is down 0.3% before the bell.
  4. Hertz Global Holdings Inc (HTZ) is down 0.7% before the open, after the company's Chief Financial Officer Jamere Jackson announced his resignation. Accounting Chief Eric Esper has been named as his replacement. Hertz has struggled in the wake of coronavirus-related market headwinds, already dropping 90% year-to-date.
  5. The week begins with the NAHB home builders index and the Empire State manufacturing index. Meanwhile, Fabrinet (FN) and Wibo (WB) will step into the earnings confessional. 

Buzz Chart Aug 17

 

Asian Markets Higher Despite U.S Tensions

 

Stocks in Asia were mostly higher after today’s session. China’s Shanghai Composite added 2.3%, after U.S.-China trade review talks were postponed, and U.S. President Donald Trump’s executive order that Bytedance sell or spin off its TikTok app within 90 days. Elsewhere, Hong Kong’s Hang Seng gained 0.7%, while South Korea’s Kospi was closed for a holiday. Japan’s Nikkei lost 0.8%, after data showed Japan’s economy shrank 27.8% between April and June -- the sharpest contraction on record.

In Europe, shares are modestly higher, as traders eye global tensions and a spike in coronavirus cases in a number of countries. London’s FTSE 100 is gaining the most, up 0.6% at last check. Meanwhile, both the French CAC 40 and German DAX have tacked on 0.2%.  

 

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