Stock Futures Dampened by Financial Sector Woes

Margin call reports are sinking financials, while media stocks look to be bouncing back

Deputy Editor
Mar 29, 2021 at 9:15 AM
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Bank stocks are pulling back this morning, and taking the rest of the market with them, thanks to reports that Hwang's Archegos Capital Management sold roughly $30 billion in holdings. The news has many sector members plummeting, including Credit Suisse (CS), which expressed concerns over weak current-quarter results as it exited hedge fund positions directly tied to the forced selling. Futures on the Dow Jones Industrial Average (DJI) are pointed roughly 180 points lower, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also sitting firmly below fair value. 

Not all sectors are stumbling today. Media stocks are bouncing back from Friday's steep selloff. Specifically, ViacomCBS (VIAC) and Discovery (DISCA), both of which came under immense pressure last week amid the aforementioned forced liquidation reports. Elsewhere, updates on President Joe Biden's infrastructure plan, which is expected to cost around $3 trillion, are expected out later this week. 

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

  • Could this food stock be the next big turnaround play?
  • A long-term growth stock bulls might want to grab. 
  • Plus, FLY flies higher on big buyout deal; CALM climbs after earnings beat; and the Big Tech stock JPMorgan Chase just called a "top pick." 

futures chart march 29

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.98 million call contracts traded on Friday, and 1.14 million put contracts. The single-session equity put/call ratio stayed at 0.58 and the 21-day moving average stayed at 0.47.
  2. Fly Leasing Ltd (NYSE:FLY) just entered an agreement with Carlyle Group (CG) to be purchased for $17.05 per share -- a considerable premium to it's Friday close at $13.25 per share -- at a total valuation of approximately $520 million. The shares of FLY are up 26.4% in premarket trading as a result. 
  3. The shares of Cal-Maine Foods Inc (NASDAQ:CALM) are up 0.6% ahead of the bell, after the egg producer posted fiscal third-quarter earnings of 28 cents per share, topping analysts forecasts. Worse-than-expected sales for the quarter could be keeping some weight on the stock this morning, though the company did add that the stay-at-home conditions due to the pandemic strengthened demand for shell eggs. 
  4. Amazon.com, Inc. (NASDAQ:AMZN) was called a "top pick" by JPMorgan Chase, sending the stock up 0.2% ahead of the bell. The brokerage firm cited the company's potential for lasting growth at a reasonable valuation. 
  5. The week will start out relatively uneventful, with nothing due out on the economic calendar today. 

OV Buzz Chart March 29

Asian Markets Brush Off Bank Sector Plummet 

Asian markets were mostly higher today. Japan’s Nikkei added 0.7%, despite a 16% plunge from finance giant Nomura. South Korea’s Kospi shed 0.2%, while China’s Shanghai Composite gained 0.5%. Rounding out the region, Hong Kong’s Hang Seng is marginally higher, despite video platform Bilibili (BILI) making a less-than-stellar trading debut.

Meanwhile in Europe, stocks are mostly higher as well, thanks to the refloated Ever Given on the Suez Canal easing supply-chain concerns. London’s FTSE 100 is down 0.2% at last check, while the French CAC 40 and German DAX sport leads of 0.4% and 0.5%, respectively.

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