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Stock Futures Rise as Santa Claus Rally Gains Steam

The CDC's new Covid guidance could be boosting futures this morning

Deputy Editor
Dec 28, 2021 at 9:16 AM
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Futures on the Dow Jones Industrial Average (DJI), Nasdaq-100 Index (NDX), and S&P 500 Index (SPX) are on the rise this morning, with all three major benchmarks looking to extend their fourth-straight wins, while the SPX looks to open at a fresh record high.

There's cautious optimism on the pandemic front, after the Centers for Disease Control (CDC) shortened the isolation period for those that test positive to five days from 10 days, if asymptomatic. Meanwhile, the S&P Case-Shiller U.S. home price index showed home prices increasing 18.4% year-over-year in October.

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

  • Senior Vice President of Research Todd Salamone lays out the VIX levels to watch heading into next year.
  • Options traders target this tech stock after a new partnership.
  • Plus, VIPS falls on guidance; COIN looks to snap win streak; and EXTR moves lower after bear note. 

Futures Dec28

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts traded on Monday, and 726,065 put contracts. The single-session equity put/call ratio fell to 0.45, and the 21-day moving average stayed at 0.49.
  2. China-based Vipshop Holdings Ltd (NYSE:VIPS) is down 2.3% pre-market, after e-commerce company trimmed its fourth-quarter revenue guidance. Plus, Jefferies added a price-target cut to $16.20 from $16.60, citing macro-headwinds, Covid-19, and warmer December weather affecting demand for winter clothing. If these losses, hold, VIPS will near its recent two-year low. 
  3. Coinbase Global Inc (NASDAQ:COIN) is off 2.4% before the bell, as Bitcoin (BTC) pulls back. This negative price action has COIN on track to snap a four-day win streak, after the stock bounced off the $131 level last week. In the last week alone, COIN has added 17.7%. 
  4. Needham raised its price target on Extreme Networks Inc (NASDAQ:EXTR) to $18.50 from $16, pushing the stock up 1.4% in electronic trading. Year-to-date, the security is up an impressive 132.7%. 
  5. There is no other economic data of note today.  
OV Buzz Chart Dec 28

Overseas Stocks Join Santa Claus Rally

Stocks in Asia once more took their cues from the broad market U.S. rally. Japan’s Nikkei paced the region with a 1.4% rise as the yen bounced back against the dollar, while Hong Kong’s Hang Seng added 0.2% even amid a tech sector pullback. Rounding out the region, China’s Shanghai Composite tacked on 0.4%, and South Korea’s Kospi finished with a 0.7% win.

Over in Europe, bourses are higher midday, though volume is light amid the holidays. U.K. markets remain closed, but new joint studies with South Africa show omicron has a sharply smaller risk of hospitalization and severe illness. The French CAC 40 is up 0.5% at last check, while the German DAX sports a 0.7% lead.

 

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