Stock Futures Slip Ahead of More Inflation Clues

The Fed will release its meeting minutes from last month later today

Digital Content Manager
May 25, 2022 at 9:13 AM
facebook twitter linkedin


Stock futures are sharply lower this morning, as investors brace for this afternoon's Federal Open Market Committee (FOMC) minutes release from last month's meeting. The 10-year Treasury yield is dipping lower ahead of the release, last seen around 2.7%. Meanwhile, futures on the Dow Jones Industrial Index (DJIA) are headed for a 131-point drop, while S&P 500 Index (SPX) and Nasdaq 100 Index (NDX) futures are also set for a sizable move below fair value. Elsewhere, oil prices are continuing their climb on fears over tightening supply; U.S. West Texas Intermediate (WTI) crude for June delivery was last seen up 1.2% at $111.03 per barrel.

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

  • Schaeffer's Senior Market Strategist Bryan Sapp finds growth stock that's a risk/reward play.
  • Can Teladoc stock recover from this year's tech selloff?
  • Plus, Trian explores potential Wendy's deal; INTU raised current-quarter guidance; and DKS eyes fresh annual highs after earnings.

futures may 25

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.02 million call contracts traded on Tuesday, and 786,146 put contracts. The single-session equity put/call ratio rose to 0.77, and the 21-day moving average stayed at 0.61.
  2. The shares of Wendy's Co (NASDAQ:WEN) are up 9.2% ahead of the bell, after the fast food chain announced Trian Fund Management, a long-time shareholder of the company, is exploring a possible acquisition or agreement. Trian already holds a 19.4% stake in WEN, which has lost 31.9% in 2021. 
  3. Intuit Inc. (NASDAQ:INTU) is up 1.4% this morning, even after the tech firm's fiscal third-quarter earnings and revenue beat, and raised current-quarter guidance. INTU has shed over 46% in the past six months, though it looks to have found a floor near the $352 level. 
  4. Dicks Sporting Goods Inc (NYSE:DKS) entered the earnings confessional with first-quarter profits and revenue that topped expectations, as well as a slimmer-than-expected drop in same-store sales. However, the sports retailer also issued a weaker-than-expected full-year forecast, sending DKS down 12.9% in premarket trading. The stock has lost over 37% this year and is set to open at its lowest level since January 2021. 
  5. Durable goods orders are due out on Wednesday

OV Buzz Chart May 25

Asian Markets Brush Off SEC Warning

Asian markets were mostly higher on Wednesday, as investors weighed comments from the U.S. Securities and Exchange Commission (SEC), which noted “time is running out” for audit inspection negotiations between the U.S. and China concerning dual-listed Chinese tech stocks. As a result, Alibaba (BABA), Baidu (BIDU), and JD.com (JD) each fell roughly 1.5%. Nonetheless, Hong Kong’s Hang Seng added 0.3%, while South Korea’s Kospi and China’s Shanghai Composite settled 0.4% and 1.2% higher, respectively. Elsewhere, Japan’s Nikkei was 0.3% lower.

Meanwhile, European markets are mostly lower, as Wall Street’s recent volatility and tech selloff weigh. In other news, German gross domestic product (GDP) for the first quarter added 0.2%, missing recession territory thanks to investments in construction and machinery. At last check, London’s FTSE 100 is 0.2% higher, the German DAX is 0.1% lower, and France’s CAC 40 is down 0.2%.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners