Stock Futures Bounce Back Ahead of Presidential Election

The Dow is aiming for a triple-digit move higher

Digital Content Manager
Nov 2, 2020 at 9:17 AM
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Stock futures are looking to start the new month on a high note, after the major indexes wrapped up a brutal October with dramatic weekly and monthly losses. Futures on the Dow Jones Industrial Average (DJI) are up over 300 points, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also trading well above market value. This rally comes on the eve of the presidential election, and just a few days after the U.S. hit a new record of 99,321 daily new coronavirus infections, according to Johns Hopkins University data.  

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

  • What you need to know about this climbing cosmetics stock
  • Newell stock's impressive earnings streak brings out the options bulls. 
  • Plus, Clorox beats analysts' estimates; automaker hires Delta executive; and the largest restaurant deal since 2014.

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.47 million call contracts traded on Friday, and 1.13 put contracts. The single-session equity put/call ratio rose to 0.77 and the 21-day moving average rose to 0.49. 
  2. Clorox Co (NYSE:CLX) is down 0.2% in pre-market trading, even after the company reported better-than-expected quarterly earnings and revenue, and raised its full-year sales guidance. The manufacturer attributed the strong results to an increase in demand for its products, as consumers stayed home during the pandemic. Year-over-year, CLX is up 40.3%.
  3. General Motors Company (NYSE:GM) is down 0.4% before the bell, after the automaker announced it hired Paul Jacobson as its new chief financial officer. Prior to accepting the new role, Jacobson had been working at Delta Air Lines (DAL) at that same capacity. In the last six months, GM has gained 65.2%.
  4. The shares of Dunkin Brands Group Inc (NASDAQ: DNKN) are up 6.2% in electronic trading, after the fast food chain announced it would be acquired by Inspire Brands for $8.8 billion in an all-cash transaction. The deal constitutes the largest restaurant acquisition since 2014. Year-to-date, DNKN is up roughly 32%.
  5. The week kicks off with the ISM Manufacturing Purchasing Managers Index (PMI), Markit Manufacturing PMI, and construction spending. On the earnings docket will be CVS (CVS), Estee Lauder (EL), Lumber Liquidators (LL), Marathon Petroleum (MPC), and PayPal (PYPL)

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European, Asian Markets Rise on Promising Economic Data

Stocks in Asia rose to begin November, as investors pored over a slew of economic data coming out of China. Specifically, China’s official manufacturing Purchasing Managers’ Index (PMI) came in at 51.4 in October, leading to a 1.5% rise for Hong Kong’s Hang Seng and a marginal bump for China’s Shanghai Composite. Elsewhere, South Korea’s Kospi added 1.5%, while Japan’s Nikkei tacked on 1.4%.

European stocks are also rising today, thanks to promising manufacturing data coming out of the euro zone. In fact, October’s PMI data came in at 54.8, up from 53.7 in September. In response, France’s CAC 40 was last seen up 1.7%, followed closely by a 1.6% rise for the German DAX. Rounding out the region, London’s FTSE 100 has added 1% so far.

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