Stock Futures Drift Higher as Tech Eyes Rebound

Fed Chair Jerome Powell has his Senate confirmation hearing later today

Managing Editor
Jan 11, 2022 at 9:19 AM
facebook twitter linkedin


Stock futures are cautiously higher this morning, as Wall Street looks to put the recent selloff in the rear view mirror. Futures on the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are slightly above fair value, while Nasdaq-100 Index (NDX) futures are eyeing a larger pop in the wake of yesterday's volatile price action. The 10-year Treasury yield cooled off after yesterday climbing to 1.8%, last seen back around 1.77%. Elsewhere, Federal Reserve chairman Jerome Powell's Senate confirmation hearing is later today. 

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

  • Schaeffer's Senior V.P. of Research Todd Salamone reassesses the tech sector after last week's rout. 
  • Check out one of our Top Stock Picks of 2022.
  • Plus, tech stock double-upgraded; CVS ups guidance; and Rivian's rough 2022 gets worse.   

OV Futures Chart Jan 11

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.47 million call contracts traded on Monday, and 825,226 put contracts. The single-session equity put/call ratio fell to 0.56, and the 21-day moving average remained at 0.49.
  2. Juniper Networks, Inc (NYSE:JNPRstock is up 3.2% in electronic trading, after BofA Global Securities issued a double upgrade to "buy" from "underperform." The analyst in coverage is bullish on the network company's valuation. JNPR is up 45% year-over-year.
  3. CVS Health Corp (NYSE:CVSstock is 1% higher ahead of the open, after the pharmacy chain raised its full-year earnings outlook from $8.33 to $8.38 per share. CVS is up 40% in the last 12 months. 
  4. The shares of Rivian Automotive Inc. (NASDAQ:RIVN) are off by 4% before the bell, after the electric vehicle's (EV) 2021 output fell short of its goal. Also weighing on RIVN is the departure of the company's chief operating officer. Rivian stock has shed 21% in 2022 already.
  5. The National Federation of Independent Business (NFIB) small-business index is due out today.
buzz jan 11

Overseas Markets Eye Powell Hearing

Asian markets were mostly lower on Tuesday, as investors feared stateside interest rate hikes and surging bond yields. They were also waiting to hear from U.S. Federal Reserve Chairman Jerome Powell, who is expected to appear before Congress today for his second term nomination hearing. Pacing the laggards today was Japan’s Nikkei with a 0.9% drop, followed by China’s Shanghai Composite’s 0.7% dip. Elsewhere, Hong Kong’s Hang Seng finished slightly below breakeven with a 0.03% loss, while South Korea’s Kospi logged a modest 0.02% gain.

European markets are bouncing back, on the other hand, as investors eye tomorrow’s U.S. consumer price index (CPI). They are also looking for hints as to the timing of interest rate hikes. At last check, both France’s CAC 40 and the German DAX are 1.2% higher, while London’s FTSE 100 up 0.7%.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report
 


 


 
Special Offers from Schaeffer's Trading Partners