The S&P 500 is looking to take out a new record high right out of the gate
Stock futures are poised to kick off the new month in a dramatic fashion. Dow Jones Industrial Average (DJI) futures were last seen up 260 points, as vaccination optimism gains more steam and “reopening stocks” lead the charge into the summer. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures were both noticeably higher as well, with the former on track to take out a new record high out of the gate. With Memorial Day in the rear-view mirror, investors are also unpacking a surging energy sector ahead of what’s likely to be a busy summer travel season.
Continue reading for more on today's market, including:
- Checking in with NetApp stock while earnings loom.
- Is this retail giant a risky investment right now?
- Plus, BA gets an upgrade; why analysts love HNST; and CLDR skyrockets on buyout buzz.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.25 million call contracts traded on Friday, and 1 million put contracts. The single-session equity put/call ratio rose to 0.45 and the 21-day moving average stayed at 0.52.
- Cowen lifted recent Dow star Boeing Co (NYSE:BA) to "outperform" from "market perform," citing rapidly improving demand for air traffic, which it suspects will bode well for jet demand. BA is up 2.1% ahead of the bell, erasing most of Friday's drop.
- The Honest Company Inc (NASDAQ:HNST) also enjoyed several bull notes this morning. No less than four analysts upgraded their ratings on the natural products manufacturer, including Citi and Jefferies to "buy." Analysts are optimistic on growth prospects for HNST, as well as Jessica Alba's role as the masthead of the company. HNST is up 3.5% before the open.
- It was just announced that Cloudera Inc (NYSE:CLDR) will be bought by KKR (KKR) and Clayton Dublier & Rice in a deal worth $16 per share. CLDR is up 23.4% in electronic trading in response to the news.
- Today features the final Markit manufacturing purchasing managers' index (PMI), the ISM manufacturing index, and data on construction spending.
Strong Economic Data Pushes Markets Higher Abroad
Asian markets were mostly higher on Tuesday, after China released better-than-expected manufacturing data for May. Plus, Malaysia’s prime minister announced additional stimulus and implemented stricter Covid-19 restrictions to contain a surge in infections. As a result, Hong Kong’s Hang Seng tacked on 1.1%, and China’s Shanghai Composite added 0.3%. Elsewhere, South Korea’s Kospi added 0.6%, while Japan’s Nikkei fell 0.2%.
European markets are also higher, after encouraging economic indicators. Manufacturing data is giving investor sentiment a boost, after activity in the euro zone hit a fresh record high in May. Meanwhile, the European Commission is looking to ease Covid-19 restrictions for vaccinated travelers by exempting them from testing or quarantine requirements while traveling in the region. At last check, the German DAX has added 1.7%, London’s FTSE 100 is up 1.2%, and France’s CAC 40 is 1.1% higher.