Stock Futures Mixed as Investors Weigh Inflation Data

Big Tech looks ready to rebound from its selloff

Assistant Editor
Feb 26, 2021 at 9:26 AM
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Futures on the Dow Jones Industrial Average (DJI) are down 37 points this morning, ahead of what looks to be a choppy end to the week. S&P 500 Index (SPX) futures are modestly in the black, while Nasdaq-100 Index (NDX) futures are up triple-digits as Big Tech stocks rebound from yesterday's steep selloff.

Investors are keeping an eye on inflation data today, amid concerns regarding the 10-Year Treasury yield, which has pulled back from Thursday highs after inflation data came out this morning. The personal consumption expenditure (PCE) price index rose 0.3% for the month, slightly higher than the expected 0.2%. Meanwhile, personal income and consumer spending both beat estimates for January, up 10% and 2.4%, respectively. 

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

  • DraftKings stock might have offered up an intriguing entry point.   
  • Scanning the long term viability of this Apple supplier
  • Plus, BYND rises on supply deals; Etsy surges after earnings; and CNK drops lower. 

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.1 million call contracts traded on Wednesday, and 982,137 put contracts. The single-session equity put/call ratio rose to 0.47 and the 21-day moving average stayed at 0.42.
  2. Beyond Meat (NASDAQ:BYND) stock is up 5.9% ahead of the bell, after the faux meat producer announced multi-year supply deals with both McDonalds (MCD) and Yum Brands (YUM). The news has BYND brushing off a dismal fourth-quarter report, with wider-than-expected losses per share as well as a revenue miss. To follow, Canaccord Genuity cut its price target to $155, while three brokerages upped theirs.
  3. The shares of Etsy Inc (NASDAQ:ETSY) are up 8.7% in electronic trading, after the e-commerce company reported much better-than-expected fourth-quarter earnings and revenue. So far, no fewer than six analysts have raised their price targets. Meanwhile, Etsy CEO Josh Silverman stated that they are not thinking of accepting bitcoin right now, though he has been a holder for the past six or seven years.
  4. Cinemark Holdings Inc (NYSE:CNK) is down 2.1% in pre-market trading this morning, after the theater company announced wider-than-expected fourth-quarter losses per share, despite also reporting a revenue beat. Year-to-date, the equity is up 30.9% coming into today.
  5. Today's economic data will feature retail inventories, the Chicago PMI, the Michigan consumer sentiment index, and the U.S. Federal Budget. 

OV Buzz Chart Feb 26

Asian Tech Giants Falter; U.K. Bonds Rise in Concert

Asian markets were lower on Friday, as the U.S. 10-year Treasury Yield surpassed the 1.6% mark to trade at annual highs. Investors were also monitoring tech stocks after the sector plummeted stateside –  a behavior that was mirrored by overseas giants Alibaba, Tencent, and Xiaomi. In response, Japan’s Nikkei fell a whopping 4%, while Hong Kong’s Hang Seng trailed just behind it with a 3.6% loss. Elsewhere, South Korea’s Kospi and China’s Shanghai Composite fell 2.8% and 2.1%, respectively.

European markets are also struggling, as investors respond negatively to the rise in bond yields. In addition, U.K. bond yields are rising as well, with Bank of England (BoE) Chief Economist Andy Haldane warning inflation could become a problem. Traders are also carefully sifting through corporate earnings reports from British Airways parent IAG, Deutsche Telekom, and Suez, among others. At last check, the London FTSE 100 is down 1.8%, France’s CAC 40 is 1.2% lower, and the German DAX has dropped 0.7%.

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