Stock Futures Bounce Back From Historic Slide

All three major indexes hit their lowest levels in over a year yesterday

Deputy Editor
May 10, 2022 at 9:07 AM
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Stock futures are attempting to patch up some of yesterday's historic landslide, with futures on the Dow Jones Industrial Average (DJIA) eyeing a 244-point pop. S&P 500 Index (SPX) futures are also comfortably higher this morning -- after both indexes fell to their lowest levels since March 2021 on Monday -- while futures on the Nasdaq-100 Index (NDX) look to bounce off annual lows as well.

Elsewhere, Bitcoin (BTC) is in recovery mode, after marking a 50% drawdown from its November record highs yesterday. The 10-year Treasury yield is cooling after hitting its highest level since 2018 yesterday, dipping back below 3% at last check. 

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

  • Schaeffer's Senior V.P. of Research Todd Salamone on two long-term trendlines to watch. 
  • What buoyed BioNTech stock during yesterday's market selloff.
  • Plus, ARMK pops on spinoff news; UPST's dismal forecast; and PTON eyes record lows.  

futures may 10

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.14 million call contracts traded on Monday, and 893,011 put contracts. The single-session equity put/call ratio rose to 0.78, and the 21-day moving average stayed at 0.59.
  2. The shares of Aramark (NYSE:ARMK) are up 2.3% ahead of the open, after the food company's revenue topped analyst forecasts. Aramark also announced it was separating its uniform services unit into its own company. ARMK has shed 7% this year, though the $32 level has captured pullbacks since gapping above the level back in November 2020. 
  3. Upstart Holdings Inc (NASDAQ:UPST) is off by 53.9% ahead of the bell and set to open at its lowest level in nearly two years. The AI lending firm reported a top- and bottom line beat for its first quarter, but slashed its full-year revenue forecast, noting the current macroeconomic environment could weigh on loan volume. UPST has been in a downtrend since its October 2021 peak, with pressure emerging in March at the 80-day moving average. The stock is already down nearly 50% this year. 
  4. Peloton Interactive Inc (NASDAQ:PTON) stock is set to open at a fresh record low, down 25.4% ahead of the open after its fiscal third-quarter losses and revenue missed analysts' estimates. Peloton cited weak demand and added that it expects some users to cancel subscriptions after it raises prices. Peloton stock has already shed 60.5% in 2022 alone. 
  5. The National Federation of Independent Business (NFIB) small-business index is expected to come out today, in addition to real household debt data.

OV Buzz Chart May 10

European Markets Brush Off Inflation Fears

Asian markets were mostly lower on Tuesday, following Wall Street’s overnight losses. Pacing the laggards was Hong Kong’s Hang Seng, which returned from a holiday to shed 1.8%, as Tencent Music Entertainment (TME) and Alibaba (BABA) tumbled. Elsewhere, South Korea’s Kospi and Japan’s Nikkei were both 0.6% lower. The only exception was China’s Shanghai Composite, which walked away with a 1.1% gain.

Meanwhile, European markets are higher, as stateside stocks eye a rebound. Investors are brushing off high inflation, interest rate hikes, and fears of a potential recession. Corporate earnings reports are also in focus, with Bayer, Pirelli, and Salvatore Ferragamo stepping into the confessional. At last check, the German DAX is 1.3% higher,  France’s CAC 40 is up 0.9%, and London’s FTSE 100 is eyeing a 0.6% pop.

 




 
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