Vaccine optimism is in focus as anxieties over inflation ease
Stock futures are bouncing back in a big way to kick off the new week and month. Dow Jones Industrial Average (DJI) futures are up 340 points this morning, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are trading well above fair value, as well. Anxieties over inflation and skyrocketing interest rates are easing this morning as the 10-year Treasury yield retreats from 1.5% and Wall Street shifts its attention to encouraging vaccine news.
Specifically, Johnson & Johnson's (JNJ) one-shot Covid-19 vaccine, meant for people over the age of 18, was approved by the Food and Drug Administration (FDA) over the weekend. Shortly after, the Center for Disease Control and Prevention's (CDC) director signed off on the treatment after a CDC panel voted to recommend its use. Also boosting sentiment is news that the House approved a $1.9 trillion emergency relief bill on Saturday. The American Rescue Plan Act of 2021 will now be considered by Senate.
Continue reading for more on today's market, including:
- These eight red-hot pot stocks made waves last week.
- Another look at Etsy's incredible earnings beat.
- Plus, TWTR pops on billion-dollar convertible note offering; TWLO plans a major investment; and Wayfair stock gets analyst love.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.8 million call contracts traded on Friday, and 1.1 million put contracts. The single-session equity put/call ratio rose to 0.63 and the 21-day moving average stayed at 0.43.
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Twitter Inc (NYSE:TWTR) just announced plans to sell $1.25 billion in convertible notes, due in 2026. Separately, MKM Partners just lifted its price target on TWTR to $95 from $73. The shares are up 0.9% in premarket trading as a result, pacing for another record high, should these gains hold.
- News that Twilio Inc (NYSE:TWLO) is in talks with Syniverse Technologies to invest $750 million in the company has shares of the former rising ahead of the bell, up 1.6% at last check. According to sources wo spoke to the Wall Street Journal, Twilio's investment in the company would be valued at as much as $3 billion. On the charts, the equity looks ready to bounce back from its late-February breather off its record highs atop the $440 mark, with a solid leg of long-time support at the 40-day moving average stepping in.
- Wayfair Inc (NYSE:W) was just upgraded to a "buy" from a "hold" at Truist Securities. The analyst forecast strong long-term profitability and a speedy growth trajectory for Wayfair. J.P. Morgan Securities also chimed in with a bull note, lifting its price target to $232 from $209. The analyst notes have given W a 2.1% pre-market boost, extending the equity's nearly 30% year-to-date lead.
- Monday will bring the Markit manufacturing Purchasing Manager's Index (PMI) and the ISM manufacturing index.
Overseas Markets Eye Strong Start to March
Asian markets kicked off March with a win, despite China’s official manufacturing Purchasing Managers’ Index (PMI) showing activity growth slowed in February. The country’s PMI came in at 50.6, slightly lower than January’s reading, but still above the 50 level that distinguishes expansion from contraction. In response, mainland stocks walked away comfortably higher, with Hong Kong’s Hang Seng and China’s Shanghai Composite up 1.6% and 1.2%, respectively. Japan’s Nikkei, however, was the biggest winner, gaining 2.4% to recover from Friday’s nearly 4% plunge. Elsewhere, South Korea’s Kospi was closed for a holiday.
European stocks are also having a solid day, so far, with the major bourses responding positively as U.S. Treasury yields retreat from record highs. The approval of Johnson & Johnson's vaccine is also boosting investor sentiment. At last check, the London FTSE 100 is up 1.4%, France’s CAC 40 is 1.3% higher, and the German DAX has added 0.8%.