Inflation Concerns Cast Wide Shadow Over Stock Futures

Jobless claims are on the rise now, too

Digital Content Manager
May 12, 2022 at 9:08 AM
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Stocks are set to extend this ugly selloff into Thursday's session. Futures on the Dow Jones Industrial Average (DJIA) are set to open at an 156-point loss, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also taking a hit.  After a brief move back above the $30,000 mark, Bitcoin (BTC) is eyeing even more negative price action today, last seen down 3.6% at $28,355.06.

In economic data, wholesale inflation prices for April saw an 11% year-over-year rise and a 0.5% monthly jump, as expected, while weekly jobless claims rose by 19,000 to 200,000. Elsewhere, Walt Disney's (DIS) lackluster earnings report could weigh on Wall Street today.

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

  • This blue-chip stock could fight off the broad-market headwinds this month. 
  • Can Kroger stock continue to outperform the market?
  • Plus, more on Walt Disney; Bumble eyes post-earnings pop; and BYND set for record lows after top- and bottom-line miss.  

futures may 12

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.16 million call contracts traded on Wednesday, and 957,751 put contracts. The single-session equity put/call ratio rose to 0.82, and the 21-day moving average stayed at 0.59.
  2. The shares of Walt Disney Co (NYSE:DIS) are down 5.4% ahead of the open, in the wake of the entertainment giant's fiscal second quarter earnings and revenue report, both of which missed analysts' estimates. Disney did post better-than-expected subscriber growth for its Disney+ streaming service, which could be keeping additional losses in check. DIS has shed 5.3% in the past six months. 
  3. Bumble Inc (NASDAQ:BMBL) has added 9.2% before the bell, following the dating app company's top- and bottom-line beat for the first quarter, as well as a 7.2% jump in paying users. Bumble has lost nearly 50% this year, but today's pop could bring it closer to toppling recent pressure at the 20-day moving average. 
  4. Beyond Meat Inc (NASDAQ:BYND) is gearing up to open at a fresh record low, down 26.6% in premarket trading, following a wider-than-expected first quarter losses and a revenue miss. Beyond Meat's CEO cited the high cost of several strategic launches, which will be paid off over the long term. BYND has shed 75% in the past 12 months. 
  5. On Thursday the producer price index (PPI) will be due out. 

OV Buzz May 12

Tech Selloff Weighs Heavily on Asian Markets 

Asian markets were lower on Thursday, amid a tech and cryptocurrency selloff that had Bitcoin hitting its lowest level since December 2020. Disappointing inflation data out of the U.S., as well as Wall Street’s subsequent overnight tumble also weighed on sentiment. Pacing the laggards was Hong Kong’s Hang Seng with a 2.2% drop, followed by Japan’s Nikkei, which shed 1.8%. Elsewhere, South Korea’s Kospi lost 1.6%, and China’s Shanghai Composite settled 0.1% lower.

Stateside inflation data is pressuring European markets as well, with investors now concerned about the potential for more aggressive interest rate hikes in the near future. Plus, the U.K. economy shrunk a worse-than-expected 0.1% in April, while an 0.8% expansion for the first quarter was below estimates. Also in focus are earnings reports from Allianz and Siemens. At last check, France’s CAC 40 is 2.5% lower, while the German DAX and London’s FTSE 100 are both down 2.2%.

 

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