Stock Futures Poised For Another Selloff

The S&P 500 has swung dangerously close to bear market teritory

Digital Content Manager
May 19, 2022 at 9:08 AM
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Yesterday's selloff has crept into Thursday's pre-market trading. Futures on the Dow Jones Industrial Average (DJIA) are eyeing a 291-point drop, while S&P 500 Index (SPX) futures have once again swung dangerously close to bear market territory, fresh off the SPX's worst day since 2020 on Wednesday. Futures on the Nasdaq-100 Index (NDX) are also indicating a triple-digit drop, as investors nervously eye the Federal Reserve's aggressive rate hike plan as it attempts tamp down on inflation. Elsewhere, jobless claims rose for the week, to 218,000, higher than the polled forecast of 200,000. 

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

futures may 19

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.13 million call contracts traded on Wednesday, and 941,889 put contracts. The single-session equity put/call ratio rose to 0.83, and the 21-day moving average rose to 0.61.
  2. Under Armour Inc (NYSE:UAA) announced that its CEO Patrik Frisk will resign on June 1. Chief Operating Officer Colin Browne will serve as the interim CEO until a replacement is found. UAA was last seen 4.8% lower before the open. The stock has already shed 50% in 2022, thanks in part to a post-earnings bear gap earlier this month. 
  3. Cisco Systems Inc (NASDAQ:CSCO) lowered its full-year forecast, noting China's string of Covid-related lockdowns and the conflict in Ukraine. CSCO was last seen down 11.8%, set to add to its 23.4% year-to-date deficit. 
  4. The shares of Kohl's Corporation (NYSE:KSS) were last seen down 7.7% before the bell, following the department store's first-quarter earnings release. Kohl's posted profits of 11 cents per share, which fell far below analysts' estimates, though it shared a revenue beat. The stock is looking to open at its lowest level since early 2021, and came into today with a 30% year-over-year deficit. 
  5. The Philadelphia Fed manufacturing index is due out today, along with existing home sales data is on tap as well. 

OV Buzz Chart May 19

Dismal Earnings Turnout Puts Pressure on European Markets

Asian markets were mostly lower on Thursday, mirroring stateside overnight losses. Pacing the laggards was Hong Kong’s Hang Seng with a 2.5% loss, dragged down by tech stocks that took a hit after Tencent Music Entertainment (TME) reported halved profits for the first quarter. Trailing not too far behind was Japan’s Nikkei, which shed 1.9% after the country’s exports showed a smaller-than-expected 12.5% year-over-year rise for April. Elsewhere, South Korea’s Kospi was 1.3% lower, while China’s Shanghai Composite added 0.4%.

European markets are pointed lower as well, in the aftermath of yesterday’s disappointing batch of retail earnings reports, which highlighted rising cost pressures. Stocks are also suffering as the U.S. Federal Reserve looks to employ more interest rate hikes to tamper inflation, which some fear could  lead to a recession. At last check, London’s FTSE 100 is 2.1% lower, France’s CAC 40 is down 1.7%, and the German DAX is eyeing a 1.5% drop.

 

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