Stock Futures Slip as Oil Prices Bubble

Oil prices continue to surge after the EU agreed to ban Russian imports

Digital Content Manager
May 31, 2022 at 9:15 AM
facebook twitter linkedin


Stock futures are taking a step back after the Memorial Day holiday, although all three major indexes snapped lengthy losing streaks last week. Futures on the Dow Jones Industrial Index (DJIA) are indicating a 213-point move lower, while S&P 500 Index (SPX) and Nasdaq 100 Index (NDX) futures follow suit with sizable pre-market losses of their own.

Inflation fears continue to grip Wall Street, while rising oil and gas prices are also pouring cold water on last week's rally. U.S. West Texas Intermediate crude was last seen up 3.4% at $118.99 per barrel, rising over the weekend after the European Union's (EU) newly-enacted ban on Russian imports.

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

  • Bulls should wait before betting on this casino stock right now. 
  • After last week's flurry of retail earnings, here's one stock to avoid
  • Plus, Peltz joins Unilever; and Morgan Stanley weighs in on 2 stocks. 

futures may 31

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.64 million call contracts traded on Friday, and 809,815 put contracts. The single-session equity put/call ratio fell to 0.49, and the 21-day moving average stayed at 0.62.
  2. Unilever plc (NYSE:UL) announced that Nelson Peltz has been named as an activist investor on its board. Peltz holds roughly 1.5% stake in Unilever, via Trian Fund Management. In response, UL is up 6.5% ahead of the bell, but still down 18.2% this year. 
  3. Nio Inc (NYSE:NIO) was just added to Morgan Stanley's "tactical idea" list, with the analyst noting easing Covid-19 restrictions in and around Shanghai. The electric vehicle stock is up 5.5% in premarket trading as a result, which could help the security eke out a win for May, should these gains hold. 
  4. American Eagle Outfitters Inc (NYSE:AEO) is extending its post-earnings drop after Morgan Stanley chimed in with a belated bear note, downgrading the stock to "underweight" from "equal-weight." The analyst called AEO's reduced guidance too optimistic. AEO is down 3.7% ahead of the bell, as it looks to add to its 13.4% monthly deficit. 
  5. Tuesday will bring the S&P Case-Shiller national home price index, the Chicago purchasing managers' index (PMI), and the consumer confidence index. 

OV Buzz May 31

China's PMI Reading Boosts Stocks in Asia 

Asian markets were mostly higher on Tuesday, after China’s official manufacturing Purchasing Managers’ Index (PMI) came in at a better-than-expected 49.6 for May, though that reading is still in contraction territory. Investors were also keeping an eye on surging oil prices, after European Union (EU) leaders agreed to impose new sanctions on Russia that will cut 90% of its oil imports to the region. Pacing the gainers today was Hong Kong’s Hang Seng with a 1.4% gain, followed by China’s Shanghai Composite’s 1.2% win. Elsewhere, South Korea’s Kospi added 0.6%, while Japan’s Nikkei settled 0.3% lower.

Meanwhile, European markets are mostly lower, following a slew of dismal inflation data. Specifically, euro zone inflation came in above expectations at 8.1% in May, notching a seventh-straight record high amid surging energy and food prices. With German EU-harmonized inflation and French inflation also above estimates, investors are now eyeing the European Central Bank’s (ECB) next moves regarding interest rate hikes. In other news, Unilever soared after naming activist investor Nelson Peltz to its board. At last check, France’s CAC 40 is 1% lower, the German DAX is down 0.9%, and London’s FTSE 100 is up 0.4%.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners