Investors are looking ahead to key inflation data
Dow Jones Industrial Average (DJIA) futures are moving higher this morning, as the blue-chip benchmark looks to extend last week's impressive gains. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also in the black, with traders now looking ahead to the release of the consumer price index (CPI) report for April. Due out later this week, it could influence the Federal Reserve's interest rate stance.
Continue reading for more on today's market, including:
- Behind the Dow's best week of 2024.
- Why Spotify stock looks appealing to bulls.
- Plus, new bullish coverage for DAL; analyst turns bearish on PENN; and Jefferies' AI favorite.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts and 935,084 put contracts traded on Friday. The single-session equity put/call rose to 0.60, and the 21-day moving average stayed at 0.70.
- Delta Air Lines, Inc. (NYSE:DAL) is up 0.3% in premarket trading, after HSBC initiated coverage with a "buy" rating, and named the company its preferred sector pick amid increased international and work travel demand. DAL has added 30.7% so far this year.
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PENN Entertainment Inc (NASDAQ:PENN) stock is down 2.5% at $15.68 before the open, following a downgrade from Bank of America to "neutral" from "buy." The brokerage changed its stance on PENN from a growth opportunity to a
“deep value turnaround.” PENN is down 38.2% in 2024.
- Jefferies raised its price objective on Nvidia Corp (NASDAQ:NVDA) stock to $1,200, with the analyst noting the company is the firm's favorite in the artificial intelligence (AI) space. NVDA added a whopping 214.5% in the last 12 months.
- A busy week of earnings and inflation data on tap.
Asian Markets React to China's Inflation Data
Asian markets finished mostly lower today, with all eyes on China’s April inflation data, which saw its consumer price index (CPI) climb 0.3% year over year (YoY), above estimates. On the flip side, the producer price index (PPI) dropped 2.5% YoY, missing expectations. China is expected to begin selling long-term treasury bonds worth 1 trillion yuan. Today’s only winner, Hong Kong’s Hang Seng, rose 0.8%, while the Shanghai Composite dropped 0.2%, Japan’s Nikkei was felled 0.1%, and South Korea’s Kospi finished flat.
Indexes in Europe are also struggling at midday, despite a boost in auto stocks. Investors await more inflation data out of the U.S., and in Europe bank stocks surged to nine-year highs on the heels of an impressive earnings season. At last check, London’s FTSE 100 is off 0.1%, and France’s CAC 40 and Germany’s DAX have both shed 0.2%.