Stock Futures Eye Bounce Off Yesterday's Dismal Trading

Futures on the S&P 500 are clawing out of correction territory

Deputy Editor
Feb 23, 2022 at 9:11 AM
facebook twitter linkedin


Stock futures are staging a solid rebound today, after the S&P 500 Index (SPX) tumbled straight into correction territory yesterday amid mounting tensions between Russia and Ukraine. Futures on the index are comfortably higher this morning, joined by Dow Jones Industrial Average (DJI) futures, which are signaling a 192-point pop, and Nasdaq-100 Index (NDX) futures, which are also up triple digits. Both the Dow and Nasdaq are in the midst of a four-day losing streak, while the S&P 500 settled 10.25% below its Jan. 3 close, marking correction territory for the index.

Yesterday's sanctions issued by U.S President Joe Biden against Russia sent alarm bells ringing through Wall Street, though some are speculating that this market volatility will be short-lived, unless the crisis sparks an economic recession. Meanwhile, oil prices are taking a breather after West Texas Intermediate crude futures hit their highest level since August 2014 yesterday. The commodity is down 0.3% at $91.71 in premarket trading.

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

  • Schaeffer's Senior Quantitative Analyst Rocky White on the dreaded death cross and why it could be a good buying opportunity for bulls. 
  • Read this before trashing Waste Management stock
  • Plus, 2 big names getting a post-earnings boost; and DGX hit with a bear note. 

futures feb 23

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.29 million call contracts traded on Tuesday, and 717,377 put contracts. The single-session equity put/call ratio fell to 0.55, and the 21-day moving average stayed at 0.56.
  2. The shares of hardware retailer Lowe's Companies Inc (NYSE:LOW) are up 3.5% in pre-market trading, following a top- and bottom-line beat for its fourth quarter. Lowe's also issued a strong full-year forecast. The stock yesterday fell 3.6%, weighed down by top competitor Home Depot's (HD) post-earnings plummet. LOW is up roughly 25% in the past year. 
  3. Space travel name Virgin Galactic Holdings Inc (NYSE:SPCE) is also eyeing upside after its fourth-quarter losses were narrower than expected and its revenue hit $141,000. The company reported no revenue this time last year, though this number missed analysts' estimates. SPCE has been falling since last June, and yesterday traded just within striking distance of its two-year low of $7.58. 
  4. Quest Diagnostics Inc (NYSE:DGX) stock is down 2.1% this morning, following a downgrade to UBS to "neutral" from "buy." The analyst warned on DGX's earnings target for fiscal 2023, citing the company's level of commitment to growth. DGX is still clinging to a year-over-year lead of 11.1%, but sports a 20.6% year-to-date deficit. 
  5. There will be a lull today, with nothing on the economic calendar.   

OV Buzz Feb 23

Corporate Earnings Give European Markets a Kick

Markets in Asia rose today, as investors weighed the initial impact of Western sanctions on Russia. Hong Kong's Hang Seng added 0.6%, China's Shanghai Composite tacked on 0.9%, and the South Korean Kospi moved 0.5% higher. Japan's Nikkei was closed for holiday.

European markets are higher midday, amid a strong batch of corporate earnings. The GfK consumer sentiment index in Germany fell to -8.1 from -6.7 points, as Covid-19 and inflation put a damper on the start of the month. Nevertheless, the German DAX is up 1% at last check, while the French CAC 40 jumps 1.3% and London's FTSE 100 rises 0.7%. 

 




 
Special Offers from Schaeffer's Trading Partners