Dow Futures Eye Steep Drop Despite Second Stimulus Agreement

The $900 billion economic relief package includes a direct payment of $600 dollars to most Americans

Deputy Editor
Dec 21, 2020 at 9:30 AM
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The Dow Jones Industrial Average (DJI) is looking to start the week with a steep drop, with futures down over 475 points ahead of the bell this morning. S&P 500 Index (SPX) and Nasdaq Composite (IXIC) futures are also firmly in the red, as headlines out of the U.K. have a new viral coronavirus strain in focus. Meanwhile, after months of negotiations, congress has agreed upon a $900 billion economic relief package. Today, lawmakers are voting on the second stimulus bill, which includes a $600 direct payment to most Americans.  

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

  • A look at Dollar General stock's impressive growth. 
  • Check out the last Schaeffer's Market Mashup of the year, featuring Scott Phillips, Lavaca Capital’s Founder and Chief Investment Officer and Matt Moran, Head of Index Insights at Cboe Global Markets. 
  • Plus, TSLA's first day on the SPX; Analysts chime in on NKE after quarterly results; and WMT upgraded. 

Futures Dec 21

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.2 million call contracts traded on Friday, and over 1 million put contracts. The single-session equity put/call ratio rose to 0.46 and the 21-day moving average stayed at 0.41. 
  2. Tesla Inc (NASDAQ:TSLA) stock is in the spotlight today as it gears up for its first day of trading on the S&P 500 Index. Pulling back from Friday's record high, TSLA is down 4.1% at last check. The company will have the sixth biggest market cap in the benchmark. 
  3. Nike Inc (NYSE:NKE) stock is up 5.8% ahead of the bell today, after the athletic retailer reported better-than-expected fiscal second-quarter results and raised its full-year guidance. To follow, no fewer than 13 analysts raised their price targets, with the highest coming from Telsey Advisory Group to $175. Coming into today, the equity is up 35.5% year-to-date. 
  4. The shares of Walmart Inc (NYSE:WMT) are up 0.1% at last check, with further gains likely pared by today's broad-market selloff, after an upgrade from RBC to "outperform" from "sector perform." The firm also raised its price target to $170 from $153, citing the "well-positioned" company entering 2021. Year-to-date, Walmart stock is up 22.8%. 
  5. Today will bring Chicago Fed national activity data

Buzz Dec 21

COVID-19 Weighs on Stocks Internationally

Asian markets were mixed today, as investors grew concerned over the record-breaking number of COVID-19 infections in Japan and South Korea. In response, Japan’s Nikkei dropped 0.2%, while South Korea’s Kospi rose 0.2%. Meanwhile, Hong Kong’s Hang Seng fell 0.7%, after the U.S. Commerce Department blacklisted chipmaker Semiconductor Manufacturing International Corporation (SMIC). Elsewhere, China’s Shanghai Composite settled 0.8% higher, as the country kept its Loan Prime Rates unchanged.

Across the pond, stocks are lower, after a fast-spreading coronavirus strain led to the shutdown of London and other parts of southeast England. The World Health Organization said new variant was also identified in the Netherlands, Denmark and Australia, with countries such as France, Germany and Italy now blocking travel from Britain. Some investors are concerned the virus may impact post-Brexit trade talks, as well. In response, the German DAX was last seen down 3.2%, while France’s CAC 40 is down 3.1%, and London’s FTSE 100 is 2.6% lower.







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