Stock Futures Pop After Closing Out Volatile May

The Dow and S&P 500 were little changed in May

Deputy Editor
Jun 1, 2022 at 9:11 AM
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Stock futures are moving above fair-market value on Wednesday, after closing out a volatile May. Specifically, futures on the Dow Jones Industrial Index (DJIA), which are indicating a 237-point pop, and S&P 500 Index (SPX) are notably higher this morning, after both indexes closed out the month with marginal wins. Meanwhile, Nasdaq 100 Index (NDX) futures sport sizable pre-market gains of its own, after the tech-laden benchmark lost more than 2% in May.

With June now underway, the U.S. Federal Reserve is set to begin reducing its balance sheet, which soared to nearly $9 trillion in the midst of the Covid-19 pandemic. It could be a tricky summer on Wall Street, with interest rate decisions to be made during the Fed's next two meetings.

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

  • The healthcare stock bulls should keep an eye on. 
  • Is Amgen stock's rally finally over?
  • Plus, breaking down HPQ's post-earnings response; EV name discloses delivery data; and unpacking 1 blue chip's quarterly report.

Futures Chart June 1

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.19 million call contracts traded on Tuesday, and 771,686 put contracts. The single-session equity put/call ratio rose to 0.64, and the 21-day moving average stayed at 0.62.
  2. HP Inc (NYSE:HPQ) is up 0.5% ahead of the bell, after reporting earnings of $1.08 per share and revenue of $16.49 billion, both of which beat analysts estimates for the fiscal second quarter. In addition, the computer and printer maker upped its profit outlook, brushing aside supply chain issues as commercial customer demand remains strong. Year-over-year, HPQ is up 32.9%. 
  3. China-based electric vehicle (EV) concern Nio Inc (NYSE:NIO) boasts a 1.7% premarket lead, on news that the company delivered 7,024 EVs in May -- a 4.7% year-on-year increase. In addition, deliveries rose 11.8% for 2022 compared to the first five months of 2021. Still, in the last 12 months, NIO is down 55%.
  4. Salesforce Inc (NYSE:CRM) reported first-quarter profits of 98 cents per share on revenue of $7.41 billion, both of which came in just above Wall Street's forecasts. The blue-chip business software behemoth raised its full-year guidance. Last seen standing 8.6% higher ahead of the bell, CRM looks to improve upon its 37% year-to-date deficit. 
  5. The S&P Global U.S. manufacturing PMI is due out today, along with the Institute for Supply Management (ISM) manufacturing index, job openings data, construction spending data, motor vehicles sales, and the Federal Reserve's Beige Book. 

newbuzzjune1

Euro Zone Inflation Reading Rises for 7th-Straight Month

Asian markets were mixed on Wednesday. The Shanghai Composite in China shed 0.1%, after the region’s Caixin/Markit manufacturing index for May came in at 48.1, marking a slight increase from April, but still representing a contraction. The Hong Kong Hang Seng also fell, dropping 0.6%, while the Nikkei in Japan added 0.7%, and the South Korean Kospi rose 0.6%.

In Europe, the major indexes are clinging close to breakeven at midday. More inflation fears are casting a shadow over the region, after the euro zone inflation reading hit 8.1% for May, which was higher than expected, and marked the reading’s seventh-straight month of record highs. Elsewhere, in the U.K. manufacturing data grew at its most sluggish rate since January 2021, dropping to 54.6 in May from 55.8. In response, the London FTSE 100 was last seen down 0.1%, while the French CAC 40 and the German DAX are up 0.2% and 0.4%, respectively.

 

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