Stock Futures, Tech Poised For Rebound

Meanwhile, the debt ceiling debate rages on

Sep 29, 2021 at 9:25 AM
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Stock futures are pointed higher this morning, as the 10-year Treasury yield cools off in the wake of yesterday's surge. In response, the tech sector is mounting a rally, with FAANG stocks all up 1% or more in electronic trading. Meanwhile, U.S. Treasury Secretary Janet Yellen said Congress has until Oct. 18 to raise or suspend the debt ceiling, lest the economy face dire consequences. U.S. Federal Reserve Chairman Jerome Powell also noted that inflation could last longer than previously thought.

At last check, futures on the Dow Jones Industrial Average (DJI) were up around 99 points, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are both firmly in the black as well.  

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

  • Schaeffer's Senior Quantitative Analyst Rocky White assesses the SPX's 4th quarter history.
  • Spotify's new campaign did little to move the stock.
  • Plus, Micron's earnings report; a big upgrade to LLY; and Netflix's new venture.

Futures Chart September 29

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts traded on Tuesday, compared to 838,184 put contracts. The single-session equity put/call ratio rose to 0.55, and the 21-day moving average stayed at 0.50.
  2. Micron Technology, Inc. (NASDAQ:MU) stock is down 3.5% in pre-market trading, despite the chipmaker reporting top- and bottom-line beats in its earnings call. Instead, dragging the stock down is the company's current-quarter forecast, which fell below Wall Street's expectations due to an ongoing parts shortage. Year-to-date, Micron stock is down 2.8%.
  3. Citigroup upgraded Eli Lilly (NYSE:LLY) to "buy" from "neutral," and hiked its price target to $265 from $210. The firm cited valuation after the equity fell nearly 15% over the last month, as well as the company's upcoming earnings outlook. The shares were last seen up 2.4% before the bell, and year-over-year Eli Lilly stock has tacked on nearly 50%. 
  4. The shares of Netflix (NASDAQ:NFLX) are up 1% ahead of the open, after it was announced that the streaming staple bought videogame maker Night School Studio, best known for created the supernatural-themed video game "Oxenfree." In 2021, NFLX boasts an 8% lead.
  5. Today will be a relatively quiet one as far as economic data goes; just the pending home sales index is due out.

OV Buzz Chart Sept 29

European Market's Brush Off Stateside Losses

Asian markets were mostly lower on Wednesday, following Wall Street’s overnight losses. A spike in the 10-year Treasury yield in the U.S. has been weighing on tech, both stateside and globally. Pacing the laggards was Japan’s Nikkei with a 2.1% drop, followed by the Shanghai Composite’s 1.8% dip in China, and a 1.2% loss for South Korea’s Kospi. The only gainer was Hong Kong’s Hang Seng, which added 0.2% after China Evergrande group surged nearly 15% in response to the sale of a $1.5 billion stake in Shengjing Bank to a state-owned asset management firm.

European markets are higher, as investors brush off stateside losses, as well as news that inflation in the U.S. could last longer than initially anticipated. The bourses are also eyeing today’s European Central Bank (ECB) Forum on Central Banking, which will include remarks from Fed Chair Jerome Powell, ECB President Christine Lagarde, Bank of Japan (BoJ) Governor Haruhiko Kuroda, and Bank of England (BoE) Governor Andrew Bailey. Elsewhere, traders are digesting upbeat news that the European Union’s (EU) economic sentiment improved in September. At last check, France’s CAC 40 is 1.2% higher, the German DAX is up 1%, and London’s FTSE 100 is 0.9% higher.

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