Stock Futures Rise as Stimulus Deadline Approaches

A slew of corporate earnings are due out today, as well

Assistant Editor
Oct 20, 2020 at 9:08 AM
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It wasn't too long ago that additional stimulus seemed like a lost cause, but stock futures are higher this morning as House Speaker Nancy Pelosi's deadline for a new fiscal stimulus deal expires today. Pelosi and Treasury Secretary Steven Mnuchin talked over the phone yesterday afternoon, and "continued to narrow their differences." As a result, futures on the Dow Jones Industrial Average (DJI) are up around 110 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are poised for modest gains.

Meanwhile, Moderna (MRNA) said its coronavirus vaccine could be available for emergency use by December. A slew of corporate reports are also catching investor's attention, with Netflix (NFLX) and Snap (SNAP) expected to share their earnings results after the close. 

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

  • Option traders love this airline stock ahead of its earnings report.
  • There's no need to worry, Navistar's pullback signals good things ahead.
  • Plus, Procter & Gamble stock is falling despite an earnings beat; Travelers reported a stellar third quarter; and more on Intel's massive sale. 

Futures Chart October 20

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts traded on Monday, and 712,233 put contracts. The single-session equity put/call ratio fell to 0.43 and the 21-day moving average slipped to 0.47. 
  2. Procter & Gamble Co (NYSE:PG) is up 0.2% in pre-market trading, after the company reported fiscal first-quarter earnings and revenue that beat analysts' estimates. Additionally, Procter & Gamble raised its full-year sales forecast, with costumers still flocking toward the the company's household products amid the pandemic. Longer term, PG is up 20.8% year-over-year.
  3. Insurance concern Travelers Companies Inc (NYSE:TRV) is down 0.3% ahead of the bell, even after reporting third-quarter earnings and revenue that bested Wall Street's forecast. The company cited higher net underwriting gains and stronger net investment income. Still, 2020 has seen TRV shed 18.3%.
  4. As flash memory prices continue to dip, Intel Corporation (NASDAQ:INTC) has announced it will sell its flash memory manufacturing business to South Korea's SK Hynix in a deal worth around $9 billion. In response, the equity is up 0.8% before the open, and up 6.3% year-over-year.
  5. Today will be a busy one, with investors looking forward to September's housing starts and building permits. Meanwhile, Lockheed Martin (LMT), Texas Instruments (TXN) will report earnings.

OV Buzz Chart Oct 20

European Investors Eye Record Daily COVID Infections

Stocks in Asia were mostly higher during today’s session. China’s Shanghai Composite rose 0.5%, after data that China’s one-year loan primate rate (LPR) came in at 3.9%, while its five-year rate at 4.7% -- in line with expectations. Meanwhile, Hong Kong’s Hang Seng added 0.1%, and the South Korean Kospi tacked on 0.5%. Today’s only loser, Japan’s Nikkei, fell 0.4%.

In Europe, the coronavirus is fully back on investors’ minds, as new daily infections reached a record high in the region on  Monday. London’s FTSE 100 gained 0.1%, the French CAC 40 moved 0.4% higher, while the German DAX dropped 0.5%.

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