Positive Economic Data Pushes Stock Futures Higher

More corporate earnings from the tech space are helping investor sentiment as well

Deputy Editor
Oct 29, 2020 at 9:30 AM
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Stock futures are looking up this morning, rising slightly amid optimism brought on by some positive economic data as well as a plethora of corporate earnings. After turning in the worst quarter in history during the second quarter, U.S. gross domestic product (GDP) rose 33.1% in the third quarter -- the fastest pace ever and better than what was expected by economists. Additionally, U.S. weekly jobless claims came in at 751,000 this morning, well below the aticipated 778,000.

As a result, futures on the Dow Jones Industrial Average (DJI) are relatively static this morning. Meanwhile, S&P 500 Index (SPX) futures are also trading flat, while Nasdaq-100 Index (NDX) futures are trading firmly above fair market value, with several FAANG names, including Apple (AAPL), Amazon (AMZN), and Facebook (FB), higher ahead of their expected earnings reports -- due out after the close this evening. 

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

  • Listen to Schaeffer's Market Mashup featuring special guests who specialize in exchange-traded funds.
  • This pharmaceutical stock has a lot to offer despite its recent pullback.
  • Plus, Spotify reported wider-than-expected losses this quarter; Tiffany and LVMH agreed to a revised takeover deal; and Exxon opts out of dividend hike.

Futures Chart October 29

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts traded on Wednesday, and 874,810 put contracts. The single-session equity put/call ratio rose to 0.65 and the 21-day moving average climbed slightly to 0.48. 
  2. Spotify Technology SA (NYSE:SPOT) reported third-quarter losses which were slightly wider than expected. Revenue, however, was in line with estimates, as premium subscriber growth rose by a whopping 27%. SPOT is up 2.5% in pre-market trading, and 103.1% year-over-year.
  3. Tiffany & Co (NYSE:TIF) is down 0.4% before the open, after the company and LVMH agreed on a revised takeover deal. LVMH will pay $131.50 per share, down from the original $135, after accusing Tiffany of mismanaging its business during the pandemic. TIF, meanwhile, has tacked on 12.2% this quarter.
  4. For the first time since 1982, Exxon Mobil Corporation (NYSE:XOM) did not raise its dividend. The energy giant kept its fourth-quarter dividend at 87 cents per share, and is up 1.4% ahead of the bell, as a result. Longer term, the equity is down 54.8% in 2020.
  5. On the docket today are pending home sales. Also, Comcast (CMCSA), Moderna (MRNA), Shopify (SHOP), Starbucks (SBUX), and Twitter (TWTR) will step into the earnings confessional.

buzz chart oct29

European Stocks Continue to Struggle Amid New Lockdown Restrictions

Stocks in Asia were mostly lower after today’s session. Bucking the selloff, China’s Shanghai Composite was today’s only winner with a 0.1% gain. Elsewhere, the South Korean Kospi fell 0.8%, while Hong Kong’s Hang Seng dropped 0.5%. Following data that Japan’s retail sales fell 8.7% year-over-year in September, while the Bank of Japan (BoJ) kept its monetary policy steady – a widely expected move, Japan’s Nikkei lost 0.4%.

In Europe, shares are continuing to struggle amid new lockdown restrictions. Ahead of the European Central Bank’s (ECB) monetary policy decision, the French CAC 40 has dipped 1%, the German DAX is down 0.5%, and London’s FTSE 100 is 0.3% lower.

 

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