The S&P is pacing for another high
After hitting fresh highs on Monday, stocks are eyeing more upside this morning, as futures trade above fair value. The Dow Jones Industrial Average (DJI) is poised for an almost triple-digit gain at the open, continuing to push back against coronavirus headwinds. Traders will also be digesting Fed Chair Jerome Powell's testimony on Capitol Hill today, along with news on the M&A front after a federal judge ruled in favor of T-Mobile's (TMUS) takeover of Sprint (S).
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.41 million call contracts traded on Monday, compared to 656,586 put contracts. The single-session equity put/call ratio moved down to 0.46, and the 21-day moving average was 0.53.
- Under Armour (NYSE:UAA) shares are tanking after earnings, again pulling back from the 160-day moving average we called out yesterday. The sports apparel stock is set to lose 13% at the open, as the company said the coronavirus has made a significant impact on the business, lowering its 2020 sales outlook by $50-$60 million.
- One name rising after earnings is AutoNation Inc (NYSE:AN), after the car retailer posted a profit beat. AN shares are up roughly 8% before the open, which would have them back atop the 200-day moving average, which they breached just last month. Short sellers were swarming the stock ahead of the event, with short interest gaining 11.1% in the past two reporting periods.
- Investment bank Simmons Energy just released a note to investors saying it believes falling global gas prices have it concerned about liquid natural gas (LNG) utilization for the upcoming summer, and that gas prices are currently below the thresholds needed to meet demand going forward. This view prompted it to downgrade stocks such as Range Resources Corp. (NYSE:RRC) and Gulfport Energy Corporation (NASDAQ:GPOR) to "neutral" from "overweight."
- Traders will digest the NFIB small business optimism index, followed by job openings data for December and fourth-quarter household debt figures. Hasbro (HAS), Hilton (HLT), and Western Union (WU) will all throw their hats into the earnings ring.
Asian Markets Get Some Relief
Stocks in Asia ended mostly higher, with Hong Kong’s Hang Seng leading the charge on a 1.3% pop on strength from the tech and automobile sectors. The Shanghai Composite ended up 0.4%, shrugging off coronavirus fears even as the death toll climbs to over 1,000, while the South Korean Kospi added 1%. Japan’s Nikkei was closed for a holiday.
Over in Europe markets are also in the black midday. The German DAX is seeing the biggest gains, up 0.9% after travel company Tui surged on a well-received fiscal first-quarter earnings report. The French CAC 40 has tacked on 0.4% so far today, while the FTSE 100 in London is up 0.8%, at last check.