Selloff Bleeds Into New Week as Stock Futures Sink
Dow futures are over 400 points below fair value at the moment
Wall Street is poised to add to last week’s steep losses this morning. Futures on the Dow Jones Industrial Average (DJIA) are already off over 435 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are eyeing deep premarket losses of their own. A continual rise in bond yields is weighing heavily on stocks, with the 10-year Treasury yield last seen trading at 3.151%, marking its highest level since November 2018. Oil, on the other hand, is taking a breather, last seen down 2.4% at $107.11 per barrel.
Continue reading for more on today’s market, including:
- Can Groupon stock regroup after tonight’s earnings report?
- The sinking water treatment stock for investors to keep an eye on.
- Plus, COTY pops after earnings; PLTR eyes new lows; and Daniel Loeb ups stake in Shell.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.24 million call contracts traded on Friday, and 899,802 put contracts. The single-session equity put/call ratio rose to 0.72, and the 21-day moving average stayed at 0.59.
- The shares of Coty Inc (NYSE:COTY) are up 1.9% in premarket trading, after the cosmetics company shared upbeat fiscal third-quarter results. Coty reported a top- and bottom-line beat and lifted its full-year forecast, citing strengthening demand. COTY has lost 32.7% in the past six months, but could bounce off its $7.15 level, which has been capturing pullbacks since early 2021.
- Palantir Technologies Inc (NYSE:PLTR) is looking to open at its lowest level since going public in September 2020, as the shares shed 16.4% ahead of the open following the company’s latest earnings report. The software concern posted first quarter earnings of 2 cents per share, which missed estimates, though revenue came in above estimates. Its current-quarter forecast also missed the mark. Heading into today, Palantir stock was already off 48.8% in 2022.
- Shell PLC (NYSE:SHEL) stock is down 2.8% ahead of the bell, even after Third Points Daniel Loeb informed investors that he had added to his existing stake in the company, following “constructive” talks with the company’s management, shareholders, and board regarding a potential split in its assets. Though it’s cooling today, SHEL has gotten a lift along with the rest of the energy sector, and has added 29.3% this year.
- The week starts off slow, with only wholesale inventories data and inflation expectations.
European Markets Sink With Ukraine in Focus
Asian markets were mostly lower to kick off the week, as investors brushed off better-than-expected Chinese trade data. Specifically, the country’s dollar-denominated exports jumped 3.9% in April compared to the year prior, despite China facing its worst Covid-19 outbreak since 2020. Still, Japan’s Nikkei paced the laggards with a 2.5% loss, and South Korea’s Kospi was 1.3% lower. Meanwhile, China’s Shanghai Composite was slightly above breakeven with a 0.09% gain, and Hong Kong’s Hang Seng was closed for a holiday
European markets are sharply lower on Monday, as Wall Street’s losses and high inflation continue to weigh. Russia’s invasion of Ukraine remains in focus, too, following attacks on a school in the Luhansk region that has presumably left dozens dead, and Russian President Vladimir Putin’s “Victory Day” speech, in which he noted the West was “preparing for the invasion of our land, including Crimea” without offering evidence. At last check, London’s FTSE 100 is 1.8% lower, France’s CAC 40 is down 1.7%, and the German DAX is eyeing a 1.4% loss.
Originally published at https://www.schaeffersresearch.com on May 9, 2022.