Stock Futures Rise as President Reverses Stimulus Stance

President Trump reversed course, urging congress to approve airline payroll support and a second round of stimulus checks

Deputy Editor
Oct 7, 2020 at 9:29 AM
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After dashing hopes for additional stimulus by postponing negotiations until after the November election, U.S. President Donald Trump tweeted in support of providing aid to airlines and other stimulus measures. In one tweet, Trump urged congress to approve airline payroll support, as well as $1,200 stimulus checks for Americans, which is giving airline stocks a boost today. Whether or not the president is still planning on halting stimulus talks with Democrats is still unclear, but futures on the Dow Jones Industrial Average (DJI) are responding in turn, last seen up over 230 points. Futures on Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also eyeing significant gains.

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

  • Schaeffer's Senior Quantitative Analyst Rocky White breaks down two weekly sentiment polls.
  • Snap stock could soar even higher thanks to this historically bullish signal. 
  • Plus, there's a secondary offering for DraftKings on the way; one Tesla plant was vandalized by a former employee; and LEVI notched an upbeat earnings report.

Futures Chart October 7

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts traded on Tuesday, and 668,492 put contracts. The single-session equity put/call ratio fell to 0.46 and the 21-day moving average fell to 0.53. 
  2. According to a filing from the Securities and Exchange Commission (SEC), a secondary stock offering by DraftKings Inc (NASDAQ:DKNG) was priced at $52  per share. For reference, the equity closed at $56.78 last night, though it is down 2.9% ahead of the bell. Longer term, DKNG is  up a staggering 472.4% year-over-year.
  3. In an email sent out to workers, Tesla Inc (NASDAQ:TSLA) said an employee "maliciously sabotaged" a portion of its Fremont, California factory last month, according to a report from Bloomberg. It's unclear the extent of the damage, though the employee was fired, following an internal investigation. The equity is up 1.4% before the open, and boasts a 394.8% lead for 2020.
  4. Levi Strauss & Co. (NYSE:LEVI) reported third-quarter earnings and revenue that easily beat Wall Street's forecasts. Results were likely propped up by a 52% surge in online sales, and as a result the equity is up 9.6% in pre-market trading. Still, LEVI has shed 23.6% on the year.
  5.  The Fed's meeting minutes are set to be released. Crude oil inventory data is due out as well. 

Buzz Chart Oct 7

Asian Markets Mostly Higher Despite Rising COVID Cases

Stocks in Asia were mostly higher after today’s session, with the exception of Japan’s Nikkei, which dipped 0.05%. Meanwhile, Hong Kong’s Hang Seng kept up its winning streak with a 1.1% gain, while South Korea’s Kospi tacked on 0.9%, despite the country reporting 114 new coronavirus cases – over 100 for the first time in a week. Elsewhere, China’s Shanghai Composite has remained close for holiday.

In Europe, shares are struggling for upside today as investors break down a hefty round of earnings and the president’s decision to postpone stimulus talks. London’s FTSE is down 0.07% midday, while the French CAC 40 and the German DAX have pulled back 0.4% and 0.5%, respectively.

 

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