Stock Futures Flat as Fed Announcement Overshadows Bond Yields

The 10-year Treasury yield dropped 3 basis points to 1.69%

Deputy Editor
Mar 19, 2021 at 9:26 AM
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Stock futures are mostly flat after a shaky week, with the Dow Jones Industrial Average (DJI) pointed roughly 14 points higher, while the S&P 500 Index (SPX) is just above fair value as a few big-name earnings roll in. The Nasdaq-100 Index (NDX) is also set for marginal gains, as bond yields begin to slip from their annual highs. Further, just before the bell the Federal Reserve announced it will not be extending the relaxed supplementary leverage ratio for banks, which softened capital levels during the pandemic. This news is overshadowing an earlier focus on the 10-year Treasury yield dropping 3 basis points to now sit at 1.69%. 

Elsewhere, energy stocks are feeling the heat, after the price of West Texas Intermediate crude slid more than 7% by the close on Thursday, stifled by a spike in Covid-19 cases in Europe and a slower-than-anticipated vaccine rollout. 

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

  • Outperforming shoe stock boasting affordable options right now. 
  • Latest headlines don't look good for this electric auto stock
  • Plus, FDX blasts higher on earnings, revenue beat; Ford stock gets an upgrade; and Nike's full-year forecast disappoints. 

new futures march 19

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.89 million call contracts traded on Thursday, and 885,228 put contracts. The single-session equity put/call ratio rose to 0.47 and the 21-day moving average stayed at 0.46.
  2. FedEx Corporation (NYSE:FDX) is up 5.3% before the bell after the company posted fiscal third-quarter earnings of $3.23 per share, exceeding analysts estimates, while its revenue for the quarter also topped expectations. The shipping firm cited an 11% pop in revenue for its Ground services as the pandemic continues to fuel the demand for e-commerce. 
  3. Barclays just upgraded Ford Motor Company (NYSE:F) to "overweight" from "equal weight," sending the shares of the automaker up 3.7% before the open. The analyst also lifted its price target by $7 to $16, citing Ford's foray into electric vehicle strategies as one of the driving factors. 
  4. Nike Inc (NYSE:NKE) is off 1.5% before the open, following the blue chip's fiscal third-quarter earnings report. Nike posted earnings per share of 90 cents, which beat analysts estimates, though its revenue missed the mark. The athletic firm's full-year revenue forecast also disappointed, while the company cited port-related issues, which weakened revenue in North America due to shipping delays. 
  5. The busy week will end with a bare economic calendar

OV Buzz Chart March 19

Asian Markets Dampened by Sinking Tech 

Stocks in Asia closed out the week with a loss, as investors’ caution rose amid an overnight selloff in the U.S. In addition, collapsing oil prices put a dent in sentiment, though gains from baking and financial stocks helped cushion the blow. China’s Shanghai Composite dropped a hefty 1.7%, while Hong Kong’s Hang Seng fell 1.4%. Japan’s Nikkei also shed 1.4%, after the country’s central bank wrapped up a two-day monetary policy meeting that featured a substantial amount of new measures. Rounding out the region, South Korea’s Kospi lost 0.9%, dragged down by major tech names like Samsung and LG Electronics. It didn’t effect markets, but top diplomats from the U.S. and China engaged in a very public verbal spat at the onset of a two-day meeting in Alaska. This is the first meeting between the Biden administration and Chinese officials.

The major bourses in Europe are also lower this afternoon, as surging bond yields once again raised fears regarding stock valuations. Much like their U.S. counterparts, stocks in the region were heavily impacted by losses in the tech sector. At last check, the London FTSE 100 is off 0.9%, while France’s CAC 40 and the German DAX were both last seen down 0.6%.

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