Stock Futures Eye Strong Start to February

The recent Reddit-fueled short squeeze is still on investors' minds

Assistant Editor
Feb 1, 2021 at 9:19 AM
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Stocks are looking at a promising start to the week, though there is still plenty of buzz around the recent Reddit-fueled speculative trading madness. As we begin February, and with all three major indexes coming off their worst weekly losses since October, futures on the Dow Jones Industrial Average (DJI) are up over 200 points at last check. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are higher as well, as silver prices jump 11% to their highest levels since 2012. The commodity appears to be the next target of the Reddit retail trading army.

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

  • See why Eli Lilly stock reversed from record highs after earnings. 
  • A look at the outperforming shares of NETGEAR stock
  • Plus, IFF rises on merger update; deliveries surge for TSLA rival; and OTIS' earnings beat.

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2 million call contracts traded on Friday, and 1.2 million put contracts. The single-session equity put/call ratio rose to 0.58 and the 21-day moving average rose to 0.42.
  2. International Flavors & Fragrances Inc (NYSE:IFF) stock is up around 16% in pre-market trading, after news that the company is completing its merger with DuPont's (DD) nutrition and biosciences business. IFF will regain its 15.6% year-over-year deficit if this morning's gains hold. 
  3. The shares of electric vehicle-maker Nio Inc (NYSE:NIO) are up 3.5% in electronic trading, after the electric car company reported strong January delivery data, with 7,225 vehicles delivered. Making its way back up toward its Jan. 11 record high, the stock is already up 17% year-to-date.
  4. Otis Worldwide (NYSE:OTIS) is up 2.4% ahead of the open, after the escalator producer reported both fourth-quarter earnings and revenue above estimates and a strong full-year forecast. In the past nine months, the equity has risen 30%.
  5. Kicking off the new week off with a bang, the final Markit manufacturing Purchasing Manager's Index (PMI) is due out alongside the ISM manufacturing index and motor vehicle sales.

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Asian, European Stocks Higher as Well

Asian markets were higher to kick off the week thanks to strong silver prices, despite new data showing Chinese manufacturing activity slowed down in January. Leading the region was the South Korean Kospi, which rose 2.7%, after biopharmaceutical name Celltrion registered outsized gains. Meanwhile, Hong Kong’s Hang Seng surged 2.2%, and the Japanese Nikkei was 1.6% higher. Elsewhere, China’s Shanghai Composite added 0.6%.

European stocks are also higher, as investors remain optimistic after last week’s speculative trading frenzy, which Goldman Sachs dubbed as the biggest short squeeze in 25 years. Additionally, traders are closely monitoring stimulus developments in the U.S., as well as their own continent’s vaccine distribution efforts, after conflicts with supplier AstraZeneca (AZN). Lastly, for January, manufacturing in Britain reported its slowest pace in three months. At last check, the German DAX is 1.4% higher, while France’s CAC 40 is up 1.3%, and London’s FTSE 100 is 1.1% higher.

Make the Most of the next Expiration Week Countdown!


 




 
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