Schaeffer's Top Stock Picks for '25

Stock Futures Rise as Investors Unpack Jobs Data

ADP private payrolls for last month came in much lower than estimates

Deputy Editor
Jun 2, 2022 at 9:11 AM
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Dow Jones Industrial Average (DJIA) futures are up 112 points before the bell this morning, while the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) point modestly higher as well, as the market looks to rebound from its two-day losing streak amid falling oil prices. Investors are eyeing plenty of jobs data, after the ADP report showed private payrolls increased 128,000 in May, which is far less than the 229,000 anticipated by analysts and represents the slowest job creation of the pandemic-era recovery. Meanwhile, initial jobless claims fell by 11,000 to a low 200,000 last week. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White analyzes the SPY's recent options volume.
  • How to trade out-of-the-money vertical debt spreads
  • Plus, breaking down HPQ's post-earnings response; EV name discloses delivery data; and unpacking 1 blue chip's quarterly report.

Futures June2

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1 million call contracts traded on Wednesday, and 709,760 put contracts. The single-session equity put/call ratio rose to 0.67, and the 21-day moving average stayed at 0.62.
  2. Lands' End Inc (NASDAQ:LE) is down 9.3% ahead of the bell, after the retailer posted dismal first-quarter results. The company also anticipates supply chain delays and consumer inflation to impact business for the rest of 2022. Year-to-date, the equity is down 43.3%. 
  3. Software name MongoDB Inc (NASDAQ:MDB) is up 2% premarket, after posting upbeat first-quarter results, helped by a 57% rise in subscription revenue and 54% rise in services revenue. No fewer than five analysts slashed their price targets after the event, however, though Barclays did raise its price objective by $8 to $338. Fresh off a recent one-year low, MDB is down 54.3% year-to-date. 
  4. Garnering plenty of attention on Stocktwits today, Chewy Inc (NASDAQ:CHWY) is soaring in electronic trading, up 19.8% at last glance, after the online pet retailer turned in better-than-expected first-quarter results. In terms of analyst attention, CHWY has received no fewer than three price-target hikes, alongside one price-target cut in response.
  5. Today will bring nonfarm productivity data, the unit labor costs revision, and factory orders. 

buzzjune2

International Markets Eye Oil Update

Asian markets were mostly lower on Thursday, with the exception of China’s Shanghai Composite, which added 0.4%, as some investors speculate the worst may be over for Chinese equities with much of Shanghai reopening after lengthy Covid-related lockdowns. Meanwhile, Hong Kong’s Hang Seng and the South Korean Kospi both dropped 1%, and the Nikkei in Japan lost 0.2%.  Attention was also focused on the dramatic plummet in oil prices seen in the final hours of trading in Asia, amid news that Saudi Arabia could ramp up its oil production due to a tightening in Russian output.

The update out of Saudi Arabia has stocks in Europe mostly higher this afternoon. Although, yesterday’s record inflation numbers continue to weigh on sentiment and have traders looking to the European Central Bank for a response to the data. At last glance, the London FTSE 100 is off nearly 1%, and the French CAC 40 and German DAX have added 1.2% and 0.9%, respectively.

 
 

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