Stock Futures Set to Sprint Out of the Gate

The omicron variant still lingers over Wall Street, though

Managing Editor
Jan 3, 2022 at 9:17 AM
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Futures on the Dow Jones Industrial Average (DJI) are indicating a strong start to 2022, up triple digits at last check, even as the omicron variant remains a massive unknown heading into the new year. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also confidently above fair value, with electric vehicle stocks eyeing a breakout, after encouraging delivery numbers from Tesla (TSLA). The semiconductor sector is also making outsized gains this morning.

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

  • TEVA was the only newsworthy cannabis stock last week. 
  • Check out some of our best podcast moments of 2021.
  • Plus, three household names enjoying big upgrades to start the year.   

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts traded on Friday, and 819,016 put contracts. The single-session equity put/call ratio fell to 0.49, and the 21-day moving average stayed at 0.48.
  2. McDonald's Corp (NYSE:MCD) stock is 0.9% higher ahead of the bell, after Piper Sandler upgraded the blue chip to "overweight" from "neutral." The analyst in coverage waxed optimistic about McDonald's drive-through upgrades, and hiked MCD's price target to $282 from $232 as well. McDonald's stock ended 2021 with a 25% year-to-date gain.
  3. PayPal Holdings Inc (NASDAQ:PYPLstock is up 1.7% before the open, after BMO upgraded the tech concern to "outperform" from "market perform." The brokerage did trim its price target to $224 from $278, though. PayPal stock took a 19% haircut in 2021.
  4. Callaway Golf Company (NYSE:ELY), a top stock pick of 2021, is up 1.4% in electronic trading this morning. The golf equipment company was named a "top pick" at Compass Point, with the analyst predicting operational growth across all of Callaway's businesses in 2022. ELY tacked on 14% last year.

  5. Today will feature the final Markit manufacturing purchasing managers' index (PMI), along with construction spending data.

jan 3 buzz
 

Global Markets Kick Off New Year 

Asian markets were mixed on Monday, with Japan’s Nikkei and China’s Shanghai Composite closed for a holiday. Hong Kong’s Hang Seng shed 0.5% for its first session of 2022, after trading of embattled property developer China Evergrande Group was halted, and despite artificial intelligence (AI) name Sensetime soaring following last week’s stellar debut. Elsewhere, South Korea’s Kospi added 0.4%.

European markets are looking to start the new year on a positive note, while London’s FTSE 100 remains closed for a holiday. Investors seem encouraged by Wall Street’s solid wins last week, though Covid-19 concerns are still top of mind, amid new flight cancellations due to the omicron variant, as well as temporary business and school closures. At last check, France’s CAC 40 is 1.2% higher, and the German DAX is up 1.1%.

 

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