Stock Futures Flat as Stimulus Deadline Fails to Yield Results

More corporate earnings are on the docket, too

Assistant Editor
Oct 21, 2020 at 9:19 AM
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House Speaker Nancy Pelosi's Tuesday deadline for a stimulus deal has come and gone, and investors are still unsure where the two parties stand as far as a new deal goes. Pelosi and Treasure Secretary Steven Mnuchin have reportedly made "good progress," but still have a lot of ground to cover before they come to an agreement. As a result, stock futures are relatively flat, with futures on the Dow Jones Industrial Average (DJI) up just 16 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures have also barely moved.

An earnings miss from stay-at-home staple Netflix (NFLX) is likely keeping a lid on some of these gains, too. Meanwhile, investors are looking ahead to earnings reports from Tesla (TSLA) and Chipotle Mexican Grill (CMG), which are slated for after the close, tonight. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White is back with a quick-and-dirty sector analysis.
  • Halozyme Therapeutics stock has room to run, according to a bullish signal.
  • Plus, a closer look at NFLX's earnings miss; one of Eli Lilly's COVID-19 treatment producing plants is under investigation; and Parsley Energy is being sold to a rival.

Futures Chart October 21

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts traded on Tuesday, and 682,978 put contracts. The single-session equity put/call ratio rose to 0.52 and the 21-day moving average climbed slightly to 0.48. 
  2. Netflix (NFLX) reported fiscal third-quarter earnings and revenue last night, while the former ultimately fell short of Wall Street's estimates. Meanwhile, subscriber growth is the weakest its been in four years. As a result, the equity is down 5.7% ahead of the open, but up 62.4% in 2020.
  3. Eli Lilly And Co (NYSE:LLY) just brought in an outside advisor to review the plant that produces the company's COVID-19 treatment, after being cited by the Food and Drug Administration (FDA) for a number of issues. LLY seems to be brushing off the news, with a 0.03% lead ahead of the bell. Longer term, LLY is up 33.1% year-over-year.
  4. Parsley Energy Inc (NYSE:PE) is down 4% before the open, after the company agreed to be bought by rival Pioneer Natural (PXD) for $4.5 billion in stock. Year-to-date, the equity has shed 43.8%.
  5. On deck today is the Federal Reserve's "Beige book," and earnings from Spirit Airlines (SAVE), Verizon (VZ), and Whirlpool (WHR) slated for release.

OV Buzz Chart Oct 21

Asian Markets End Strong, While Stocks in Europe Stumble 

Stocks in Asia were mostly higher after today’s session, with a boost from several airline stocks. Hong Kong’s Cathay Pacific Airways jumped 2.3% after the company announced layoffs as part of a restructuring plan, bolstering the Hang Seng by 0.8%. Elsewhere, the Kospi in South Korea rose 0.5%, and Japan’s Nikkei tacked on 0.3%. Today’s only loser, China’s Shanghai Composite, fell 0.1%.

On the other hand, shares in Europe are brushing off upbeat earnings reports as coronavirus cases rise and U.S. stimulus talks leave investors lukewarm. London’s FTSE 100 has dropped 1.2%, the French CAC 40 is down 1%, and the German DAX has lost 0.9%, at last check.

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