Stock Futures Kick Off October on High Note as Stimulus Hopes Grow

Investors are also celebrating better-than-expected jobless data

Digital Content Manager
Oct 1, 2020 at 9:07 AM
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Stock futures are pointed higher this morning, looking to kick off the new month on a high note by extending yesterday's gainsand shaking off September losses. Futures on the Dow Jones Industrial Average (DJI) are aiming for a 200-point pop. Meanwhile, futures on the S&P 500 Index (SPX) and the Nasdaq-100 Index (NDX) are looking to open with substantial gains as well. Elsewhere, investor sentiment is turning optimistic after the vote for a $2.2 trillion stimulus package was delayed in the House to allow for more talks, a move that some are interpreting as a sign that an agreement may soon be on its way. In other news, the number of first-time filers for unemployment benefits dropped to 837,000 last week, which is better than the 850,000 claims economists expected.

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

  • GM put the breaks on its $2 billion deal with Nikola, for now.
  • Sherwin-Williams stock was flat despite a slew of bull notes.
  • Plus, Medtronic in hot water after ventilator competition allegations; FDA expands investigation of AstraZeneca's vaccine candidate; HP to pay $6 million settlement.

Stock Futures 101

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.38 million call contracts traded on Wednesday, and 619,065 put contracts. The single-session equity put/call ratio dropped to 0.45 and the 21-day moving average stayed at 0.54. 
  2. Medtronic PLC (NYSE:MDT) is down 0.9% in pre-market trading, after The Wall Street Journal reported that the Department of Justice is investigating the medical device company for allegedly limiting competition in ventilator manufacturing. The security is already carrying a 8.4% deficit year-to-date.
  3. AstraZeneca plc (NASDAQ:AZN) is up 1.2% before the bell, despite a move from the Food and Drug Administration (FDA) to expand the investigation of an illness a patient involved in AstraZeneca’s COVID-19 vaccine study experienced. Year-over-year, the stock is up 23.7%.
  4. The shares of HP Inc (NYSE: HPQ) are up 0.1% in electronic trading, after it was determined that the company would have to pay $6 million settlement to resolve a Securities and Exchange Commission (SEC) complaint over its sales practices dating back to 2016. The equity is down 7.6% this year.
  5. Manufacturing data from the the Institute for Supply Management (ISM) will be released today, in addition to core personal consumption expenditure data. Earnings from Bed, Bath & Beyond (BBBY), Conagra (CAG), Constellation Brands (STZ) and PepsiCo (PEP) are due out.

OV Buzz Chart Oct 1

European Markets Higher Thanks to Economic Data, Earnings

Markets in China, Hong Kong and South Korea were closed on Thursday, though some noteworthy events took place in Japan. The country’s Tokyo Stock Exchanged ceased trading due to a technical issue, while the large manufacturers index came in at minus 27 versus expectations of minus 23. Still, Japan’s Nikkei finished the day unchanged.

European stocks were last seen higher, as economic data and corporate earnings poured in. In fact, the final September manufacturing purchasing managers’ index (PMI) was right in line with forecasts, while the euro zone August jobless rate increased month-on-month. Meanwhile, Swedish retailer H&M and French-Italian chipmaker STMicro were just a few companies that propped up stocks after beating earnings forecasts. In response, France’s CAC 40 is up 0.9%, while London’s FTSE was last seen up 0.5%. Lastly, the German DAX is up 0.2%, despite a rough day for Bayer, amid a downwardly revised forecast.


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