Stock Futures Poised for Yet Another Dramatic Drop

Coronavirus infections and corporate earnings reports are impacting investors' sentiment

Assistant Editor
Oct 28, 2020 at 9:25 AM
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After the market closed yesterday's session with big losses, stock futures are showing no signs of a reversal in sentiment, with all three major indexes eyeing hefty losses before the open. Futures on the Dow Jones Industrial Average (DJI) are down over 600 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are well into the red, as well, as optimism wanes amid an increase in coronavirus infections.

Daily cases of the virus in the U.S. have risen by a new record average of 69,967 over the past week, according to data from Johns Hopkins University. This spike is leading some states to tighten restrictions, while several countries outside the U.S. are reinstating some lockdown measurements. Meanwhile, investors have a plethora of corporate earnings to pore over, including a much-anticipated report from Microsoft (MSFT), which, despite an earnings and revenue beat, is sporting sizeable losses before the open. 

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

  • A look at how the market tends to move around election day, courtesy of Schaeffer's Senior Quantitative Analyst Rocky White.
  • Breaking down EBAY ahead of its quarterly report, due out after the close. 
  • Plus, how Boeing fared in the earnings confessional; pandemic-related lockdowns gave Sony stock an earnings boost; and more on Caesars Entertainment's million-dollar sale.

Futures Chart October 28

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.2 million call contracts traded on Tuesday, and 574,774 put contracts. The single-session equity put/call ratio fell to 0.48 and the 21-day moving average stayed at 0.47. 
  2. Boeing Co (BA) reported third-quarter losses that were smaller than Wall Street anticipated, with revenue that also topped estimates. Boeing announced its target workforce of 130,000 by the end of 2021 -- 11,000 less than currently employed. In pre-market trading, BA is down 0.9%, and is staring at a 54.5% year-over-year deficit. 
  3. After reporting better-than-expected fiscal second-quarter profits, Sony Corp (NYSE:SNE) lifted its annual profit forecast. The company said months of lockdown measures helped give its gaming business a boost, and cited the success of its Japanese animated film "Demon Slayer." Before the open today, SNE is down 0.6%, though it's up nearly 14% this year. 
  4. Caesars Entertainment Inc (NASDAQ:CZR) is down 0.2% ahead of the bell, after announcing the sale of its Tropicana Evansville casino in a deal worth $480 million. Gaming & Leisure Properties is set to buy the real property assets, while Twin River Worldwide Holdings will purchase the operating assets. Longer term, CZR is down 18.7% in 2020.
  5. Today, trade balance data is on tap, along with earnings from Amgen (AMGN), Etsy (ETSY), Fiverr (FVRR)Ford (F), Gilead Sciences (GILD), Teladoc (TDOC), and UPS (UPS) .

Buzz Chart oct 28

European Markets Plunge in Response to New COVID Restrictions

Stocks in Asia were a mixed bag after today’s session, with investors eyeing a drop in oil prices and the international resurgence of coronavirus, as mainland China reported its highest number of daily cases in over two months. Today’s winners, China’s Shanghai Composite added 0.5%, while the South Korean Kospi added 0.6%. Meanwhile, Hong Kong’s Hang Seng and Japan’s Nikkei both dipped 0.3%.

In Europe, shares are plummeting midday, as France and Germany both announced new restriction preparations due to the rising COVID-19 infections. London’s FTSE 100 is down 1.7% at last check, the French CAC 40 has dropped 3%, and the German DAX is down 3.2%.

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