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Stock Futures Signaling Much-Needed Rally

The S&P 500 has been drifting toward bear market territory

Digital Content Manager
May 13, 2022 at 9:07 AM
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For what feels like the first time in ages, futures on all three major indexes are staging sizeable premarket rallies. Futures on the Dow Jones Industrial Average (DJIA) are set to open 331 points higher, while S&P 500 Index (SPX) futures follow suit, just narrowly missing the bear market cutoff, marked by a 20% deficit from all-time highs. Nasdaq-100 Index (NDX) futures are also eyeing some much-needed upside after barely logging a win during yesterday's session.

In other news, Twitter (TWTR) is back in the spotlight after Tesla (TSLA) CEO Elon Musk said his deal to buy the social media company is now temporarily on hold. Much-watched Bitcoin (BTC) is also getting a boost along with the broader market, last seen up 7.4% at $30,640.

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

  • Bulls targeted this retail stock even as the rest of the market tumbled. 
  • Signal flashing for American International stock has never been wrong.
  • Plus, 2 big names share a beat-and-raise; and what's giving Robinhood stock a boost.  

OV Futures Chart May 13

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.34 million call contracts traded on Thursday, and 1.08 million put contracts. The single-session equity put/call ratio fell to 0.81, and the 21-day moving average stayed at 0.59.
  2. Toast Inc (NYSE:TOST) is eyeing a 12.8% pop ahead of the bell, following the restaurant software company's first-quarter report. TOST posted a slimmer-than-expected loss and a revenue beat, while also raising its full-year revenue forecast. TOST has shed 70% in the past six months, and touched its lowest level since going public yesterday, before jumping to a win by the close. 
  3. The shares of Affirm Holdings Inc (NASDAQ:AFRM) are up 36.9% this morning, after the fintech company posted fiscal third-quarter losses that were slimmer than analysts expected, as well as a revenue beat. Affirm lifted its full-year forecast, too, sharing that it would extend its partnership with Shopify (SHOP). AFRM is looking to shave off a huge portion of its 81% year-to-date deficit. 
  4. Robinhood Markets Inc (NASDAQ:HOOD) has added 23.5% in premarket trading on news that the founder of cryptocurrency exchange FTX Sam Bankman-Fried has taken a 7.6% stake in the company, per a regulatory filing, making him the third largest shareholder in the company. HOOD has been blasted on the charts during the market's recent selloff, down 53.6% in 2022, and yesterday hit a record low of $7.71.
  5. The week closes out on Friday, with the export price index, the import price index, and the University of Michigan's consumer sentiment index and inflation expectations.

OV Buzz Chart May 13

Fed Comments Send Overseas Stocks Higher

Asian markets closed a volatile week on a high note, despite U.S. Federal Reserve Chairman Jerome Powell’s comments regarding the economic impact that could stem from controlling high inflation. The top gainer was Hong Kong’s Hang Seng with a 2.7% pop, with Japan’s Nikkei not trailing far behind with a 2.6% jump. Elsewhere, South Korea’s Kospi added 2.1%, and China’s Shanghai Composite settled 1% higher.

European markets are also higher on Friday, as investors brush off the U.S. central bank’s comments, as well as news that Euro area industrial production shrank a worse-than-expected 1.8% in March. They are also eyeing the Russia-Ukraine crisis, after Moscow threatened to retaliate against Finland over its intent to join NATO, as European officials scramble to find gas suppliers following Russia’s sanctions. At last check, France’s CAC 40 and London’s FTSE 100 are both 1.6% higher, while the German DAX is up 1.5%.

 
 

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