Stock Futures Inch Higher as Investors Worry Over High Valuations

Stocks pulled back from record highs yesterday

Deputy Editor
Jan 12, 2021 at 9:03 AM
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Stock futures are inching higher this morning, with investors growing skeptical about the stretched valuations of stocks. Yesterday, the major indexes tumbled from record highs in response to the increasingly dire political turmoil in the U.S., and Jeff Gundlach, founder of DoubleLine Capital, sent a warning concerning the market's high valuations. "At extraordinarily high valuations is where we are, and it's being supported by massive amounts of stimulus," Gundlach said on CNBC's "Halftime Report." As a result, futures on the Dow Jones Industrial Average (DJI) are up 59 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are marginally higher as well.

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

  • With earnings just ahead, it's time to look at BlackRock stock.
  • Amazon stock takes a breather after letting Parler go.
  • Plus, more news concerning AstraZeneca's coronavirus vaccine; how Zoom is raising billions; and Amazon moves to remove QAnon themed products.

Futures Chart January 12

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.9 million call contracts traded on Monday, and 792,267 put contracts. The single-session equity put/call ratio fell to 0.41 and the 21-day moving average stayed at 0.44. 
  2. The shares of AstraZeneca plc (NASDAQ:AZN) are up 0.2% before the open, after it was reported the company's Covid-19 vaccine, developed with Oxford University, would be reviewed on an accelerated timeline by Europe's drug regulator. AZN is just above breakeven year-over-year.
  3. Zoom Video Communications Inc (NASDAQ:ZM) is sinking, down 2.6% ahead of the bell, after announcing the company is seeking to raise $1.5 billion through a secondary stock offering. A pandemic staple, ZM has tacked on 362% year-over-year.
  4. After pledging to remove QAnon-related products from its online store, the shares of Amzon.com, Inc. (NASDAQ:AMZN) are up 0.4% in pre-market trading. Yesterday Amazon Web Services stripped Parler, a conservative social media website, of its hosting rights, following riots at the Capitol and news users were found to be planning further violence on the site. Year-over-year, AMZN is up 65.4%.
  5. Things pick up after a quiet start to the week, with the NFIB small-business index on deck today, as well as the latest job openings report.

BuzzJan12

European Stocks Fall Amid Rising Covid-19 Cases, Political Tensions in U.S.

Asian markets were mostly higher on Tuesday, with the Shanghai Composite in China leading the gainers with a 2.2% pop. The Hang Seng in Hong Kong wasn’t far behind, ending the day up 1.3%, while the Japanese Nikkei rose 0.09% after Monday’s holiday, and the South Korean Kospi dropped 0.7%. Investors in the region are monitoring news that Malaysia’s king just declared a state of emergency for the country, putting multiple states in lockdown due to the coronavirus.

European markets are eyeing losses, as the impact of Covid-19 and political tensions in the U.S. weigh heavily on economies throughout the region. The London FTSE 100 is down 0.6%, while the French CAC 40 and the Frankfurt DAX are both off 0.1%.

 

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