Stock Futures Dragged Down by FAANG Stocks, Inflation Data

The Consumer Price Index rose 4.2% from a year ago

Assistant Editor
May 12, 2021 at 9:06 AM
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Stock futures are poised to open lower this morning, reeling as investors again kick tech shares to the curb and key inflation data poured in. After logging its worst day since February, the Dow Jones Industrial Average (DJI) was last seen down over 120 points. Meanwhile, FAANG stocks, amongst other notable tech and semiconductor names, have S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures firmly in the red as well.

Key inflation data released showed an acceleration in April -- its fastest since September 2008. According to the Labor Department, the Consumer Price Index (CPI) rose 4.2% year-over-year, well above estimates of 3.6%. In addition, core CPI increased 3% in the same timespan. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White takes a look at a century-old trading theory
  • History says Roku stock could be a good bet.
  • Plus, more on Amazon's latest lawsuit; FUBO soars after upping its full-year outlook; and a lot to love about Wendy's stock.

Futures Chart May 12

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts traded on Tuesday, and 817,029 put contracts. The single-session equity put/call ratio fell to 0.57 and the 21-day moving average stayed at 0.49.
  2. Amazon.com, Inc. (NASDAQ:AMZN) is making headlines this morning, after winning an appeal against the European Commission. The European Union's (EU) general court said the commission failed to prove that the Big Tech titan received an unfairly favorable $303 million tax deal, with the money in question being owed to Luxembourg -- home to the company's European subsidiary. In response, AMZN was last seen marginally lower, down 0.2% pre-market, but the equity is still up 33.8% year-over-year.
  3. The shares of sports streaming provider Fubotv Inc (NYSE:FUBO) are soaring in electronic trading, last seen up 23.5%, after reporting first-quarter revenue that topped Wall Street's estimates. And although the company turned in a wider-than-expected quarterly loss, a raised full-year outlook is helping the struggling security, which is down 36.9% in 2021.
  4. Fast food name Wendys Co (NYSE:WEN) is up 5.2% before the open, after stepping into the earnings confessional, where it bested top- and bottom-line estimates for the first quarter. In addition, Wendy's said it saw higher comparable-restaurant sales, leading the company to raise its full-year outlook, hike its dividend, and increase its stock repurchase plan. Today's positive price action will add to WEN's 4% year-to-date lead.
  5. Attention today turns toward the latest Federal budget balance.

OV Buzz May 12

Asian, European Investors Monitor Latest Inflation Data

Asian markets were mixed on Wednesday, after fresh data out of China showed both consumer and factory gate prices rising, with the latter growing at its fastest pace in thee and a half years. Additionally, investors remain worried about inflation, as well as potential Covid-19 restrictions in Taiwan after an outbreak. Pacing the laggards was Japan’s Nikkei -- which fell 1.6% after Nissan reported outsized annual operating losses -- followed by South Korea’s Kospi's 1.5% dip. Meanwhile, Hong Kong’s Hang Seng added 0.8%, and China’s Shanghai Composite rose 0.6%.

European markets are mostly higher, on the other hand, as earnings from the likes of German giants Allianz and Bayer roll in. Investors are also closely monitoring the latest concerning inflation data in the U.S. In turn, London’s FTSE 100 was last seen up 0.7%, the German DAX is up 0.3%, and France’s CAC 40 is slightly below breakeven with a 0.03% loss.

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