Stock Futures Poised For Big Bounce Back

Weekly jobless claims jumped to their highest level since October

Managing Editor
Jan 20, 2022 at 9:19 AM
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Futures on the Dow Jones Industrial Average (DJI)S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) are all moving higher this morning, despite the rising 10-year Treasury yield sending the Nasdaq into correction territory last night. The latest corporate reports of interest come from American Airlines (AAL) and United Airlines (UAL), both of which highlighted the impact omicron had on the last quarter. Elsewhere, jobless claims came in at 286,000 for the week, their highest level since October and easily clearing the 225,000 estimate. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White unpacks this sentiment indicator
  • Don't sweat Broadcom stock's pullback.
  • Plus, Ford dinged by downgrade; unpacking AAL's post-earnings reaction; and Alcoa toasts its big year.   

OV Futures Chart Jan 20

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts traded on Wednesday, and 826,149 put contracts. The single-session equity put/call ratio rose to 0.55, and the 21-day moving average stayed at 0.50.
  2. Ford Motor Company (NYSE:F) stock is down 2% in electronic trading, after Jefferies downgraded the automaker to "hold" from "buy," but raised its price target to $25 from $20. The analyst in coverage cited a lack of potential upside, and premature praise for the company's electric vehicle (EV) progress. Ford stock is up 8% in 2022. 
  3. American Airlines Group Inc (NASDAQ:AAL) stock is 1.3% higher ahead of the bell, after the company reported a narrower than expected loss for the fourth quarter. Additionally, strong holiday demand helped revenue top analyst estimates. AAL sports a year-over-year lead of 8.4%.
  4. The shares of Alcoa Corp (NYSE:AA) are 1.9% higher before the open, after the aluminum producer reported fourth-quarter earnings that exceeded Wall Street's expectations. Revenue was in line with estimates, with the company benefiting from a relatively recent rise in aluminum prices. Alcoa stock is up 158% in the last 12 months.
  5. Existing home sales are on deck today.
buzz jan 20 new

Asian Markets Pop After Rate Cuts, Economic Data

Asian markets were mostly higher on Thursday, after China’s central bank cut its one- and five-year loan prime rates. Investors also reacted to better-than-expected trade data out of Japan, which saw exports rise more than 17% year-over-year in December. Leading the gainers was Hong Kong’s Hang Seng with a 3.4% pop, followed by a 1.1% jump from Japan’s Nikkei 1.1% jump. Elsewhere, South Korea’s Kospi added 0.7%, and China’s Shanghai Composite finished slightly below breakeven with a 0.09% loss.

European stocks are mixed, as news that the inflation rate in the United Kingdom hit a 30-year high continues to weigh. Investors are also monitoring U.S. bond yields, which are cooling from yesterday’s highs, as well as earnings reports from Deliveroo and Bankinter. At last check, France’s CAC 40 is down 0.2%, London’s FTSE 100 is 0.1% lower, and the the German DAX is up 0.1%.


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