Stock Futures Drop Ahead of Fed Minutes

Debt ceiling negotiations are resuming this morning

Deputy Editor
May 24, 2023 at 9:09 AM
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Stock futures are pointed lower today, with futures on the Dow Jones Industrial Average (DJIA) down triple-digits. All eyes are on Washington today, as both sides once again meet to negotiate the debt ceiling ahead of the release of the latest Federal Reserve meeting minutes -- due out this afternoon.

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

  • How stocks typically perform Memorial Day week, per Schaeffer's Senior Quantitative Analyst Rocky White. 
  • Technical resistance in place for eBay stock
  • Plus, FHN upgraded; KSS soars after earnings; and MRNA on the rise. 

Futures May24

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.2 million call contracts and 756,505 put contracts exchanged on Tuesday. The single-session equity put/call ratio rose to 0.59 and the 21-day moving average dropped to 0.70.
  2. Jefferies this morning upgraded First Horizon Corp (NYSE:FHN) to "buy" from "hold," though the firm also trimmed its price target to $13 from $18. FHN is up 2.2% before the bell, though still down 54% year-to-date after the recent bank sector woes.
  3. Kohl's Corporation (NYSE:KSS) is up 12.1% premarket, after the retailer's surprise first-quarter profit and reiterated guidance. This pop is further removing KSS from its May 19 record lows. Year-over-year, heading into today, the retail stock is down nearly 50%. 
  4. Moderna Inc (NASDAQ:MRNA) is up 2.5% in electronic trading, amid an uptick of Covid-19 cases in China. Year-to-date, the vaccine stock is down 23%, but is poised to trade at its highest level in over a month. 
  5. Aside from the Fed's meeting minutes, today will also bring crude inventories.


Economic Data Rolls In Overseas

Asian markets finished Wednesday mostly lower. China’s Shanghai Composite shed 1.3% to close at a more than four-month low. Japan’s Nikkei lost 0.9%, even after business sentiment among manufacturers marked its first positive reading in 2023. Meanwhile, Hong Kong’s Hang Seng fell 1.6%, while South Korea’s Kospi wrapped up the session at breakeven.

Sentiment in Europe is also sour, with the region’s major bourses all sitting lower this afternoon. London’s FTSE 100 is down 1.7% at last glance, even after inflation fell below 10% for the first time since August. Elsewhere, France’s CAC 40 and Germany’s DAX were last seen 1.8% and 1.6% lower, respectively.




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