Dow futures are signalling a roughly 600 point drop this morning
It appears as if yesterday's Super Tuesday surge will be short-lived, with stock futures signaling significant drops this morning. Dow Jones Industrial Average (DJI) futures are eyeing a roughly 600 point tumble, paring a chunk of yesterday's massive quadruple-digit gains, while the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) aren't too far behind. This choppy market is thanks to even more coronavirus anxieties, with California declaring a state of emergency following it's first COVID-19 fatality, bringing the death toll in the U.S. to 11.
Continue reading for more on today's market, including:
- Why one analyst isn't concerned about Cronos' delayed quarterly report.
- Breaking down last week's S&P sell-off, and what it might mean for stocks, with Schaeffer's Senior Quantitative Analyst Rocky White.
- Plus, CIEN pops on earnings beat; Needham issues warning on GOOGL stock; and FireEye gets a bull note.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 92.2 million call contracts traded on Wednesday, compared to 79.8 million put contracts. The single-session equity put/call ratio moved to 0.87, and the 21-day moving average was 0.62.
- Tech name Ciena Corporation (NYSE:CIEN) is continuing its impressive climb higher this morning, after posting fiscal first-quarter earnings that beat analysts' expectations. The company cited strength in its networking business platforms. The equity is up 4.6% in pre-market trading, and is looking to reclaim its year-to-date breakeven level, should these gains hold.
- FAANG name Alphabet Inc (NASDAQ:GOOGL) is slipping this morning after Needham slashed its outlook for both fiscal first and second quarters, blaming lower travel ad revenue. The Google parent is now down 2.5% in electronic trading.
- FireEye Inc (NASDAQ:FEYE) is higher in pre-market trading, up 1.7% after Goldman Sachs upgraded the software concern to "buy" from "neutral," with a price target of $18 -- a roughly 30% premium to last night's close. The analyst said that conversations with the company have given it confidence that FEYE is on the road to improvement.
- Today, traders will comb over weekly jobless claims, unit labor costs and productivity data, and factory orders data for January. The Organization of the Petroleum Exporting Countries' (OPEC) two-day meeting will also start. American Outdoor Brands (AOBC), Costco (COST), and Kroger (KR) will all step into the earnings confessional.
$50 Billion IMF Aid Package Props Up Asian Markets
Markets in Asia rose across the board today. China's Shanghai Composite gained 2%, after the International Monetary Fund (IMF) announced a $50 billion aid package to help combat the coronavirus outbreak. Hong Kong's Hang Seng added 2.1%, with insurance stock AIA leading the charge. Rounding out the region, Japan's Nikkei closed up 1.1%, while South Korea's Kospi tacked on 1.3%.
Over in Europe, on the other hand, stocks have pivoted lower at midday, despite the $50 billion relief from the IMF. London's FTSE 100 is down 1.8% at last check. The German DAX is off 1.7%, despite a big day from meal-kit company HelloFresh. The French CAC 40 is nursing a 1.9% loss.