Stock Futures Pointed Higher as Bond Yields Cool

Fed fatigue is subsiding, at least for a day

Fernanda Horner

Digital Content Manager

Mar 3, 2023 at 9:12 AM

Stock futures are pointed higher this morning, set to extend yesterday's gains as U.S. Treasury yields pull back. Comments from Atlanta Federal Reserve President Raphael Bostic favoring a 25 basis point rate hike are encouraging traders, as they wait for the latest Institute of Supply Management (ISM) non-manufacturing purchasing managers' index (PMI) reading.

Futures on the Dow Jones Industrial Average (DJIA) were last seen 107 points higher, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are also set to open firmly in the black. For the week, all three major benchmarks are eyeing wins.

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

How options traders played Kroger's earnings report.
Why this crypto stock plummeted to record lows.
Plus, praise for AAPL; Procter & Gamble stock upgraded; and Costco's revenue miss.

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5 Things You Need to Know Today

The Cboe Options Exchange (CBOE) saw more than 1 million call contracts and 854,178 put contracts traded on Thursday. The single-session equity put/call ratio dropped to 0.81 and the 21-day moving average stayed at 0.79.
Morgan Stanley raised its price target on Apple Inc (NASDAQ:AAPL) to $180 from $175, a 23% premium to last night's close. The analyst cited strong iPhone demand and gross margins, services growth, and new product launches. AAPL is up 0.9% ahead of the open and sports a 12.3% lead so far this year.
Procter & Gamble Co (NYSE:PG) stock is up 1% before the bell, after scoring an upgrade from JP Morgan to "overweight" from "neutral." The brokerage said the company may become an earnings compounder later this year and has a resilient consumer base. Year-to-date, PG is up 7.7%.
The shares of Costco Wholesale Corporation (NASDAQ: COST) are down 2.2% in premarket trading, after the retailer announced a fiscal second-quarter revenue miss, while earnings came in above expectations. No fewer than three analysts cut their price targets, including Telsey Advisory Group to $540 from $580. COST is down 8.2% year-over-year.
The ISM non-manufacturing PMI comes out later this morning.

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Asian Markets Rise on Fresh Economic Data

Asian markets finished the day higher on Friday, after China’s Caixin/S&P Global services purchasing manager’s index (PMI) came in at 55 in February, rising from January’s 52.9. Easing inflation levels in Japan pushed the Nikkei to log a 1.6% rise. Meanwhile, Hong Kong’s Hang Seng rose 0.7%, China’s Shanghai Composite added 0.5%, and the South Korean Kospi tacked on 0.2%.

In Europe, more inflation data rolled in. A flash estimate for the euro zone showed inflation easing to 8.5% from 8.6%, though still above analyst expectations. London’s FTSE 100 is inching lower, down 0.01% at last glance, while the French CAC 40 and German DAX rise 0.7% and 0.9%, respectively.

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