Stock Futures Set to Sustain New Year Surge

Futures on the Dow Jones Industrial Average (DJI) are eyeing another move higher this morning, fresh off the blue-chip index's record close yesterday. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are poised to add to their 2022 gains as well, with energy and reopening stocks leading the charge. All of this optimism comes even after Johns Hopkins University reported a record 1,082,549 million new Covid-19 cases on Monday. Elsewhere, bond yields are on the rise, with the 10-year Treasury yield last seen at 1.6%.

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

• Schaeffer's Senior V.P. of Research Todd Salamone revisits a key SPX trendline.
• How options traders have been playing red-hot Nio stock.
• Plus, Foot Locker downgraded; tech giant upgraded; and a big day for Microvision stock.   

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw more than 1.9 million call contracts traded on Monday, and 823,348 put contracts. The single-session equity put/call ratio fell to 0.43, its lowest level since Nov. 22 and the 21-day moving average stayed at 0.48.
2. Foot Locker Inc (NYSE:FL) stock is off by 4% in electronic trading, after J.P. Morgan Securities downgraded the retailer to "underweight" from "neutral."  The analyst in coverage is wary of Foot Locker's increasing competition. FL is battling its year-over-year breakeven level this morning.
3. Hewlett Packard Enterprise Company (NYSE:HPE) stock is 2.5% higher ahead of the open, after Barclays upgraded the tech giant to "overweight" from "equal-weight."  HPE is on track to trade at its highest level since May.
4. The shares of tech concern MicroVision Inc (NASDAQ:MVIS) are 11% higher before the bell, though the catalyst is unknown at the moment. MVIS was up only 2.4% year-over-year heading into today.
5. Today will feature the S&P Case-Shiller U.S. home price index. 

European Bourses Mimicking U.S. Equity Surge

Asian markets were mixed on Tuesday, with China’s Shanghai Composite closing 0.2% lower, despite new data showing strong Chinese factory activity growth for December. Meanwhile, Hong Kong’s Hang Seng settled slightly above breakeven with a 0.06% gain, as investors weighed news that China’s cyberspace regulator will require a security review before internet platforms with over 1 million users can list abroad. Elsewhere, South Korea’s Kospi inched just 0.02% higher, while Japan’s Nikkei added 1.8%.

European markets are on the rise, however, mirroring Wall Street’s upside momentum as stocks hit record highs. Reopening plays in the travel sector are sporting outsized gains, as traders continue to brush off the spread of the Covid-19 omicron variant, despite reimposed lockdowns and restrictions across the globe. At last check, London’s FTSE 100 is up 1.4%, France’s CAC 40 is 1.3% higher, and the German DAX carries a 0.8% lead.