Surging Bond Yields Puts Pressure on Stock Futures

Dow futures continue to climb while the S&P 500 and Nasdaq are pointed lower

Deputy Editor
Mar 12, 2021 at 9:15 AM
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Stock futures are muted this morning after the 10-year Treasury yield rose roughly eight basis points overnight, last seen back near its annual high at 1.6%. The Dow Jones Industrial Average (DJI) is pointed roughly 47 points higher, set for more record highs, while the S&P 500 Index (SPX) is sitting below fair value. The Nasdaq-100 Index (NDX) is getting hit the hardest, looking to erase yesterday's gains as investors put a pause on tech buying. This comes one day after stocks surged amid news that U.S. President Joe Biden signed the $1.9 trillion Covid-19 relief package into law earlier than expected.

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

  • What had Oracle stock heading into a post-earnings plummet. 
  • Why Party City stock deflated after its Q4 report
  • Plus, Ulta CEO steps down; DOCU dips despite earnings beat; NFLX works on new feature. 

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.87 million call contracts traded on Thursday, and 819,376 put contracts. The single-session equity put/call ratio rose to 0.44 and the 21-day moving average stayed at 0.45.
  2. The shares of Ulta Beauty Inc (NASDAQ:ULTA) are down 10.2% ahead of the open following the resignation of the company's CEO Mary Dillon. Dillon will be transitioning to executive chairman, replaced by the firm's President David Kimbell. The firm also posted a fourth-quarter earnings beat, though it slashed its full-year comparable sales forecast. 
  3. Docusign Inc (NASDAQ:DOCU) is dropping before the opening bell after its fourth-quarter earnings beat estimates. DOCU's revenue and outlook also topped analysts expectations, though the equity is down 3.9% before the bell. 
  4. Netflix Inc (NASDAQ:NFLX) is working on a new feature that would limit password sharing by asking users to confirm they share a household with the account owner. The streaming stock is down 1.5% before the open. 
  5. The week will end as quietly as it started, with the PPI and core PPI on deck.  

OV Buzz Chart March 12

European Stocks Slide Despite Bond Buying Efforts 

Asian markets closed the week out mostly higher, in lockstep with their U.S. counterparts. In response, Japan’s Nikkei rose 1.7%, South Korea’s Kospi added 1.4% on the back of rising tech shares, and China’s Shanghai Composite closed 0.5% higher. Elsewhere, Hong Kong’s Hang Seng fell 2.2%.

Stocks in Europe, meanwhile, are retreating in afternoon trade, though they’re still on track for a positive week. Rising Treasury yields have investors to erring on the side of caution once more, though the European Central Bank (ECB) said yesterday that it will increase bond buying efforts “significantly” in the second quarter. In addition, recently released data show the U.K. economy shrank by 2.9% in January -- a better-than-expected contraction. At last check, London’s FTSE 100 is marginally higher, the French CAC 40 is off roughly 0.1%, and the German DAX is 0.6% lower.

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