Stock Futures Pointed Higher, but Weekly Losses Loom

The S&P 500 continues to hover just above bear market territory

Digital Content Manager
May 20, 2022 at 9:03 AM
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The bumpy ride Wall Street has been on this week isn't over yet. Stock futures are set for another swing higher today, with futures on the Dow Jones Industrial Average (DJIA) pointed toward a 274 pop, while S&P 500 Index (SPX) futures find some separation from bear market territory. Futures on the Nasdaq-100 Index (NDX) are indicating a triple-digit pop as well.

Despite the upswing, both the Nasdaq and S&P 500 are eyeing their seventh-straight weekly losses, while the Dow is poised to log its eighth. Traders may be emboldened by China's overnight decision to slash a key benchmark rate for mortgages, amid Covid-related lockdown, even as central banks around the globe continue to hike rates in an effort to beat back inflation. 

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

  • Tech's "Big 5" have lost $2.5 trillion in market cap value in 2022. Now what?
  • Bath & Bodyworks options activity bubbles over after yesterday's earnings
  • Plus, DASH bounces on buyback announcement; FL shares earnings beat; and Boeing's Starliner aircraft launch a success.   

futures may 20

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.17 million call contracts traded on Thursday, and 944,827 put contracts. The single-session equity put/call ratio fell to 0.80, and the 21-day moving average stayed at 0.61.
  2. The shares of DoorDash Inc (NYSE:DASH) are up 3.1% in premarket trading, following the company's announcement of a $400 million share buyback program, which it hopes will help offset some of the costs associated with its employee stock compensation plan. DASH is down 51% in the past 12 months
  3. Foot Locker, Inc (NYSE:FL) is up 5.1% ahead of the bell, following the shoe retailer's first-quarter earnings report. Foot Locker beat estimates with profits of $1.60 per share, well above the 5 cents per share expected by analysts, though earnings missed the mark. Foot Locker stock has lost 5.6% in 2022, and today will have to contend with a recent ceiling at the $32 mark
  4. Boeing Co (NYSE:BA) announced this morning that the launch of its Starliner aircraft was successful. The Starliner is now making its way toward the International Space Station. In response, shares of Boeing are up 1.4%. BA is still sitting dangerously close to its two-year low of $120.28 and sports a year-to-date deficit of 44.2%. 
  5. No economic data of note is scheduled on the calendar today. 

OV Buzz Chart May 20

China's Central Bank Decision Boosts Overseas Markets 

Asian markets closed out the week on a strong note, after China maintained its one-year benchmark lending rate at 3.7%. Meanwhile, its five-year loan prime rate (LPR) saw a 15 basis-points cut, as the country tries to boost housing demand amid declining bank loans. Leading the gainers was Hong Kong’s Hang Seng, which added 3% after electric vehicle (EV) maker Nio (NIO) began trading in Singapore – the third exchange in which it’s listed. Elsewhere, South Korea’s Kospi and China’s Shanghai Composite were 1.8% and 1.6% higher, respectively, and Japan’s Nikkei rose 1.3% after the country’s core consumer prices jump of 2.1% met analysts’ estimates.

European markets are mirroring global market gains, though investors are still concerned about inflation following a worrisome week of retail earnings in the U.S. The Russia-Ukraine war is in focus as well, after The World Food Programme (WFP) said global food security is on the line if Ukrainian ports do not reopen. In other news, German producer prices saw a new annual record in April, rising 33.5% amid higher energy costs. At last check, German DAX and London’s FTSE 100 are both 2% higher, and France’s CAC 40 is up 1.7%.

 

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