Stock Futures Dip as Investors Decide Where to Place Bets

There's a tug-of-war between reopening plays and Big Tech occurring

Jake Scott

Deputy Editor

May 4, 2021 at 9:13 AM

Stock futures are cooling off this morning, dragged down by tech shares following yesterday's relatively strong session on Wall Street. Futures on the Dow Jones Industrial Average (DJI) are set to turn in a nearly 150-point drop, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are struggling in red ink as well. At the moment, investors are torn between betting on reopening stocks and in Big Tech.

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

Schaeffer's Senior V.P. of Research Todd Salamone shines light on doji candles.
Buy the dip on this semiconductor name.
Plus, Under Armour's post-earnings buzz; CVS stock boosted by Q1 results; and 1 surging paper company.

Futures Chart May 4

5 Things You Need to Know Today

The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts traded on Monday, and 702,686 put contracts. The single-session equity put/call ratio fell to 0.51 and the 21-day moving average stayed at 0.47.
Under Armour Inc (NYSE:UAA) is down 2.5% ahead of the open, despite the company reporting first-quarter profits and revenue that beat Wall Street's estimates. In addition, Under Armour upped its full-year outlook, while separately agreeing to pay the Securities and Exchange Commission (SEC) $9 million to settle a probe into its accounting sector. UAA is up 146.6% year-over-year.
Drug store and pharmacy name CVS Health Corp (NYSE:CVS) is up 2.1% in electronic trading. CVS earned $2.04 per share on revenue of $69.1 billion -- both well above analysts forecasts -- for the first quarter, with increased sales boosted by Covid-19 vaccination visits. The company also raised its full-year forecast, and boasts a 13.8% year-to-date lead.
The shares of Domtar Corp (NYSE:UFS) are surging ahead of the bell, last seen up 18.5%, following a Bloomberg report that said Canada's Paper Excellence is considering buying the company. The deal could value Domtar in the mid-$50 per share range, well above its Monday's close of $40.52. UFS has tacked on nearly 30% in 2021.
Today brings trade deficit and factory orders data.

OV Buzz May 4

European Markets Mixed Following Corporate Earnings

Asian markets were slightly higher on Tuesday, as investors kept an eye on India’s worsening Covid-19 situation. Hong Kong’s Hang Seng added 0.7% to wrap up the session, while South Korea’s Kospi rose 0.6%. Elsewhere, China’s Shanghai Composite and Japan’s Nikkei were both closed for a holiday.

European markets are a mixed bag as a fresh batch of corporate earnings roll in. Traders are also weighing the easing of pandemic restrictions stateside, amid ramped up vaccinations. At last check, London’s FTSE 100 is up 0.4%, the German DAX is down roughly 1%, and France’s CAC 40 is slightly above breakeven, up 0.05%, despite outsized gains from aircraft manufacturer Dassault Aviation.

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