Schaeffer's Top Stock Picks for '25

Stock Futures Flat as Investor Optimism Dwindles

Many are calling October's early pop a bear market rally

Digital Content Manager
Oct 6, 2022 at 9:09 AM
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Stock futures are struggling for direction this morning, following Wednesday's wild last hour of trading. Futures on the Dow Jones Industrial Average (DJI) were last seen just below the breakeven, while Nasdaq-100 (NDX) and S&P 500 (SPX) futures are also oscillating ahead of the bell. With rates back on the rise and optimism fading, many are calling the early October pop nothing more than a bear market rally. Meanwhile, initial jobless claims came in at 219,000 last week, topping expectations and rising substantially from the previous week. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White breaks down the gold selloff
  • Is Lululemon Athletica stock's lofty price tag worth it?
  • Plus, PTON cuts more jobs; CAG posts earnings beat; and COMP pops on potential privatization deal.

futures oct 6 22

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 943,481 call contracts and 676,201 put contracts traded on Wednesday. The single-session equity put/call ratio rose to 0.72, while the 21-day moving average stayed at 0.68.
  2. Peloton Interactive Inc (NASDAQ:PTON) just announced it will cut another 500 jobs, or roughly 12% of its workforce. Peloton's CEO told the Wall Street Journal he will give PTON another six months to rebound, but that it might not be a viable stand alone business if it isn't able to do so. PTON is up 0.5% in the premarket, though it's down nearly 90% year-over-year. 
  3. Conagra Brands Inc (NYSE:CAG) entered the earnings confessional to report third-quarter profits and sales that topped expectations, and also reaffirmed its full-year forecast. CAG is up 0.6% ahead of the open, but is still below its year-to-date breakeven level.
  4. An insider report stated that Vista Equity Partners is exploring a potential deal to take Compass Inc (NYSE:COMP) private. Shares of the real estate name are up 4.3% before the bell, as the security tries to put a dent in its 71.9% year-to-date deficit. 
  5. The aforementioned jobless claims data is all that was scheduled today.

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Asian Markets Higher After OPEC+ Agreement 

While a holiday keeps Chinese stocks closed for the week, Asian markets as a whole closed mostly higher after the Organization of the Petroleum Exporting Countries and their allies (OPEC+) agreed to cut oil production by two million barrels per day. Per CNBC, Mizuho said the organization’s supply cut confirms its “naked eye for price buoyancy, not just support.” In response, Japan’s Nikkei added 0.7% and South Korea’s Kospi jumped 1%. Meanwhile, Hong Kong’s Hang Seng fell 0.4%, after lithium battery maker CALB, which raised the largest initial public offering (IPO) in the region in 2022, ended its first day of trading flat.

European markets are lower on Thursday, with yesterday’s euro zone readings keeping previous positive sentiment in check. At last glance, London’s FTSE 100 is down 0.8%, France’s CAC 40 has lost 0.5%, and the DAX in Germany is 0.3% lower. 

 
 

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