Stock Futures Sink as Big Tech Selloff Accelerates

FAANG names continue to get pummeled

Deputy Editor
May 11, 2021 at 9:17 AM
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Stock futures are sharply lower this morning, with the Dow Jones Industrial Average (DJI) looking at a particularly dismal open, last seen down over 260 points. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are swimming in red ink as well, dragged down by Big Tech's extensive selloff. At last check, Amazon.com (AMZN), Apple (AAPL), and Facebook (FB) are all off by at least 1.5% in electronic trading, while Tesla (TSLA) is down 7% pre-market. Looking ahead, the Labor Department is set to publish its latest Jobs Openings and Labor Turnover Survey (JOLTS), while several Federal Reserve officials will make remarks.

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

  • Schaeffer's Senior V.P. of Research Todd Salamone revisits some S&P 500 support levels.
  • FireEye stock enjoyed cyber attack tailwinds.
  • Plus, SPCE plummets after quarterly whiff; L Brands' pending split; and Palantir stock eyeing bear gap.

Futures Chart May 11

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts traded on Monday, and 906,711 put contracts. The single-session equity put/call ratio rose to 0.59 and the 21-day moving average rose to 0.49.
  2. The shares of Virgin Galactic Holdings Inc (NYSE:SPCE) are down 19.8% in electronic trading, after the space exploration company reported first-quarter losses that doubled Wall Street's estimates. Separately, the company's CEO Richard Branson said its timeline for its next test flight needs to be evaluated due to wear-and-tear issues for its Eve mothership. Year-to-date, SPCE is off 24.4%.
  3. L Brands Inc (NYSE:LB) announced it will not sell its Victoria's Secret operation, instead opting to split into two separate public companies -- Victoria's Secret and Bath & Body Works. According to reports, bids for Victoria's Secret were less than expected. So far, LB is down 2.6% ahead of the bell, but the security still boasts a 462.9% year-over-year lead. 
  4. Palantir Technologies Inc (NYSE:PLTR) is off 9.9% before the open, after the data analytics company reported fiscal second-quarter earnings that were in line with analysts estimates. Revenue, meanwhile, topped forecasts, and Palantir said it expects annual revenue to grow by 30% or more through 2025. However, today's negative price action only adds to its 21.6% deficit for 2021. 
  5. Investors have the latest National Federation of Independent Business' (NFIB) small-business index reading to digest later today.

OV Buzz May 11

Asian Markets Tumble Amid Stateside Tech Selloff

Asian markets were mostly lower on Tuesday, following the stateside tech selloff. Additionally, fresh data showed China’s consumer prices rose by a slimmer-than-expected 0.9% in April compared to a year ago, while its producer price index topped analysts’ estimates. In response, China’s Shanghai Composite added 0.4%. Elsewhere, Japan’s Nikkei paced the laggards with a 3.1% drop, Hong Kong’s Hang Seng shed 2%, and South Korea’s Kospi fell 1.2%.

The tech selloff is impacting European markets as well. Investors are eyeing the queen’s speech over in the U.K. later today, which will give clues on legislation the British government will attempt to pass over the coming months. In other news, Japan-based Softbank announced a massive equity investment in British e-commerce name THG. At last check, both the German DAX and London’s FTSE 100 are down 2.2%, while France’s CAC 40 is down 1.9%.

 

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