Dow futures are staring at a 71-point drop
Wall Street looks poised to cool off from yesterday's record closes today. At last check, futures on the Dow Jones Industrial Average (DJI) are staring at a 71-point drop, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are cautiously lower.
Nevertheless, the 10-year Treasury yield -- last seen at 1.7% -- continues to fall and ease inflation fears. Investors are also keeping a close eye on U.S. President Joe Biden's $2 trillion infrastructure plan, which faces opposition over the size and payment method. However, Biden dismissed concerns that higher corporate taxes would have a negative impact on the economy.
Continue reading for more on today's market, including:
- Schaeffer's Senior Market Strategist Matthew Timpane explains why a beaten-down tech sector has bullish potential.
- This plant-based meat stock could soon climb up the charts.
- Plus, Credit Suisse set to lose $4.7 billion; asset management firm bags "top pick" rating; and Southwest brings back pilots.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2 million call contracts traded on Monday, and 794,846 put contracts. The single-session equity put/call ratio fell to 0.38 and the 21-day moving average fell to 0.45.
- Credit Suisse Group (NYSE: CS) is up 0.5% before the bell, despite news that it is set to lose $4.7 billion in relation to its dealings with Archegos Capital Management. The bank noted it will investigate those losses, and also announced both its Chief Risk Officer Lara Warner and investment banking head Brian Chin will be leaving the company.
- Asset management firm BlackRock, Inc. (NYSE: BLK) is slightly below breakeven ahead of the open, despite being named it a "top pick" at Credit Suisse. The analyst in question noted the company had an attractive business mix, which could lead to "robust organic growth."
- The shares of Southwest Airlines Co (NYSE:LUV) are up 0.5% in electronic trading, after the company called 209 pilots back from voluntary leave in anticipation of strong travel demand during the summer months, thanks to a ramped up Covid-19 vaccination rollout. The airline plans to have the pilots on active duty on June 1.
- The day will be relatively quiet in terms of economic data, thought the latest job openings numbers are due out.
European Markets React Positively to U.S. Economic Data
Stocks in Asia were mixed after today's trading, with Hong Kong's Hang Seng closed for holiday. China's Shanghai Composite fell a muted 0.04%, despite economic data showing growth in the country's services sector. China's Caixin/Markit services PMI for March came in at 54.3, which is higher than the previous month's 51.5. Meanwhile, Japan's Nikkei dropped 1.3%, while the South Korean Kospi posted a 0.2% gain.
In Europe, stocks are higher midday, as the market digests recent positive economic data in the U.S. and China on the first day back from the Easter holiday. So far, London's FTSE 100 is outperforming with a 1.2% gain, while the French CAC 40 and German DAX rise 0.6% and 1.2%, respectively.