Dow Futures Extending Yesterday's Dramatic Plummet

Better-than-expected nonfarm payrolls data could keep losses in check

Digital Content Manager
May 6, 2022 at 9:15 AM
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Wall Street is poised to add to yesterday's dramatic losses, with futures on the Dow Jones Industrial Average (DJIA) eyeing a 57-point drop, in the wake of the Dow's worst day since June 2020S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures aren't faring much better, with both indexes poised to add to yesterday's selloff. Better-than-expected nonfarm payrolls data is keeping some of these losses in check this morning, with 428,000 jobs added in April, much higher than the 400,000 anticipated by Wall Street. Elsewhere, oil prices are in focus for Friday, with June-dated crude futures last seen up 1.2% at $109.52 per barrel.

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

  • The technical levels to watch on this tech ETF
  • How Wall Street reacted to Sunrun's latest earnings report.
  • Plus, 2 stocks getting a boost after earnings; and PTON eyes selling sizeable stake.  

futures may 6

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.25 million call contracts traded on Thursday, and 795,114 put contracts. The single-session equity put/call ratio rose to 0.63, and the 21-day moving average rose to 0.59.
  2. The shares of DraftKings (NASDAQ:DKNG) are up 4.9% ahead of the open, following the sports betting company's first-quarter earnings report. DraftKings posted a wider-than-expected loss, but revenue topped estimates its full-year outlook was raised. The stock has lost 48% this year, with recent pressure near the $16 mark keeping shares near their April 28, two-year low of $13.06. 
  3. Block Inc (NYSE:SQ) stock is also seeing a post-earnings surge, last seen up 4.1%, even after the company's earnings and revenue for the first quarter missed analysts' estimates. Operating earnings beat expectations, giving shares a boost. Block stock still suffers a 57.3% year-over-year deficit, though it loos like the $92 level is stepping in as a floor on the charts. 
  4. Peloton Interactive Inc (NASDAQ:PTON) is adding to yesterday's 9.1% drop, last seen down 3.1% in electronic trading after reports came out that the firm was looking into selling a large chunk of its minority stake, with those familiar with the matter saying it could be from 15% to 20%. The stock has already lost 51.7% this year, and yesterday hit its lowest level on record at $16.67. 
  5. The week closes out consumer credit data are due out as well.

OV Buzz Chart May 6

Markets in Asia, Europe Finish Week on Low Note

Asian markets were mostly lower to close out the week, following Wall Street’s steep overnight losses. Pacing the laggards was Hong Kong’s Hang Seng, which settled 3.8% lower, followed by China’s Shanghai Composite with a 2.2% drop. The region’s tech stocks continued to tumble, while China’s Covid-19 lockdowns have led to supply chain disruptions that are weighing on other markets. Elsewhere, South Korea’s Kospi logged a 1.2% drop, while Japan’s Nikkei was the only gainer with a 0.7% pop.

Stateside losses are pressuring European stocks lower as well, as fears that sharp interest rate hikes are still on the horizon weigh. Investors are also working through the latest batch of corporate earnings reports, which include Adidas and British Airways parent IAG, while monitoring the escalating conflict between Russia and Ukraine. At last check, France’s CAC 40 and the German DAX are both 1.4% lower, and London’s FTSE 100 is down 1%.

 

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