Investors Shed Tech Stocks, Bitcoin Extends Drop

Bitcoin fell below the $40,000 level

Assistant Editor
May 19, 2021 at 9:14 AM
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Stock futures are pointing sharply lower this morning, now pacing for a third-straight negative session, as investors once again sell shares of tech. Futures on the Dow Jones Industrial Average (DJI) were last seen down nearly 360 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) sink into red ink as well. Shares of Big Tech, including multiple FAANG names, are underperforming, after sentiment was dented by a plunge in cryptocurrencies. Bitcoin, the world's largest digital token, fell below $40,00 for the first time in 14 weeks.

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

  • Schaeffer's Senior Quantitative Analyst Rocky White takes a look at the VIX's recent spike.
  • TJX attracts attention ahead of earnings.
  • Plus, Target shatters Wall Street's Q1 estimates; Lowe's stock brushes off earnings win; and TTWO gives a light forecast.

Futures Chart May 19

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts traded on Tuesday, and 662,184 put contracts. The single-session equity put/call ratio fell to 0.48 and the 21-day moving average rose to 0.52.
  2. Target Corporation (NYSE:TGT) is up 3% ahead of the bell, following a first-quarter earnings and revenue beat. Target reported earnings of $3.69 on revenue of $24.20 billion, and saw a 22.9% surge in comparable-store sales -- more than double estimates. Now back on its way toward all-time high territory, TGT is up 16.9% year-to-date.
  3. The shares of Lowe's Companies Inc (NYSE:LOW) are down 2.5% before the open, despite an upbeat trip to the earnings confessional. Lowe's saw first-quarter earnings and revenue soar above Wall Street's estimates, with a pop in same-store sales to boot. Year-over-year, LOW has tacked on 65.1%.
  4. Video game maker Take-Two Interactive Software Inc. (NASDAQ:TTWO) has struggled this year, down 19% in 2021. Looking to turn things around, TTWO is up 2.6% in electronic trading, after the company turned in fiscal-fourth quarter top- and bottom-line beats. However, vaccines have more people confident in leaving their homes, so Take-Two gave a lighter-than-expected forecast. 
  5. It's another bare day, but investors will have the latest the Federal Open Market Committee (FOMC) meeting minutes to look over.

BuzzMay19

European Stocks Suffer Once More From Inflation Fears

Asian markets were mostly lower on Wednesday, with South Korea’s Kospi and Hong Kong’s Hang Seng closed for holiday. Elsewhere, Japan’s Nikkei fell 1.3%, and China’s Shanghai Composite dropped 0.5%.

European stocks are lower as well, as inflation fears maintain a tight grip on global markets. Investors are also monitoring the release of the Fed's latest meeting minutes, which come out later today, and may offer clues on the central bank’s next steps. Meanwhile, fresh data out of the U.K. showed inflation more than doubled in April. In turn, the German DAX was last seen down 1.8%, London’s FTSE 100 has shaved 1.5%, and France’s CAC 40 is down 1.6%.

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