Stock Futures Mixed as Investors Turn Away From Big Tech

Investors are swapping out of technology stocks amid vaccine optimism

Digital Content Manager
Nov 10, 2020 at 9:21 AM
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Futures on the Dow Jones Industrial Average (DJI) are up over 160 points this morning, building off of yesterday's record levels, after upbeat vaccine news and presidential election results boosted investor sentiment. Meanwhile, futures on the S&P 500 Index (SPX) are flat, while Nasdaq-100 Index (NDX) futures are staring at significant losses, as investors swap out technology stocks that were popular during the pandemic for those that would benefit from a return to normalcy, such as airline, cruise and hotel stocks. 

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

  • This restaurant stock could soon reclaim its pre-pandemic levels. 
  • Schaeffer's V.P. of Research, Todd Salamone, dives into the post-election market.
  • Plus, Microsoft launches new gaming consoles; mall giant drops on quarterly miss; and home construction stock beats analysts' estimates.

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.5 million call contracts traded on Monday, and 934,564 put contracts. The single-session equity put/call ratio rose to 0.37 and the 21-day moving average stayed at 0.49. 
  2.  Microsoft Corporation (NASDAQ:MSFT) is up 0.2% in pre-market trading, after the technology giant launched its new gaming console models -- the Xbox Series X, as well as the Series S. The consoles will cost $499.99 and $299.99, respectively, and are being released amid a pandemic  boom in online gaming. Year-over-year, MSFT is up 49.6%.
  3. Simon Property Group Inc (NYSE:SPG) is down 6.7% before the bell, after the mall concern reported lower-than-expected third-quarter earnings and revenue. The company attributed the disappointing results to the pandemic, as retail tenants paid lower rents or missed payments. This year, Simon Property Group stock is down 48.8%.
  4. The shares of  D. R. Horton Inc (NYSE:DHI) are up 3.4% in electronic trading, after the home construction name reported fiscal fourth-quarter earnings and revenue that beat analysts' estimates. As a result, the company raised its dividend and gave an optimistic 2021 outlook. Year-over-year, DHI sports a 23.1% lead.
  5. The week is picking up today, with the National Federation of Independent Business (NFIB) small-business index on deck, as well as the latest jobs openings data.

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European, Asian Markets Rise Amid COVID-19 Vaccine Optimism

Markets in Asia were mostly higher today, as investors enjoyed the broad-market optimism stemming from the news of a possible coronavirus vaccine. Japan’s Nikkei tacked on 0.3% and South Korea’s Kospi added 0.2%, as the former’s yen bounced back against the dollar. On the mainland, Hong Kong’s Hang Seng gained 1.1%, although China’s Shanghai Composite sat out the rally with a 0.4% dip. This comes after China’s October consumer price index (CPI) rose by a smaller-than-expected amount in October, while the producer price index (PPI) took a larger-than-anticipated hit on a year-over-year basis.

Over in Europe, stocks are climbing thanks to vaccine tailwinds. London’s FTSE 100 and the French CAC are up 1.2% and 0.9% at last check, respectively. Rounding out the region, the German DAX is 0.2% higher, as investors unpack retail giant Adidas’ cautious fourth-quarter guidance.

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