COVID-19 cases are surging, and keeping a lid on gains
Stock futures are on the rise this morning, attempting to rebound from yesterday's massive selloff. Still, any gains to be seen can expect a cap, as investor continue to worry over the surge in COVID-19 cases and hope dwindles for a new stimulus deal before election day. Futures on the Dow Jones Industrial Average (DJI) are up around 75 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are marginally higher, as well, with the latter getting a boost on news that chipmaker Advanced Micro Devices (AMD) is buying sector peer Xilinx (XLNX) is a $35 billion all-stock deal.
Continue reading for more on today's market, including:
- Schaeffer's V.P. of Research, Todd Salamone, breaks down where volatility is heading in the coming weeks.
- Call traders are flocking toward Intel stock despite its recent pullback.
- Plus, Caterpillar turned in an upbeat earnings report; Charles Schwab is laying off 3% of its workforce; and more on JM Smucker's massive deal.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.2 million call contracts traded on Monday, and 724,081 put contracts. The single-session equity put/call ratio rose to 0.59 and the 21-day moving average stayed at 0.47.
- Blue chip name Caterpillar Inc. (NYSE:CAT) reported third-quarter earnings and revenue that beat Wall Street's forecasts, though the company did elect to withhold guidance. In response, CAT is down 0.3% in pre-market trading. Year-to-date, the equity has tacked on 10.5%.
- About 1,000 workers are to be let go from Charles Schwab Corporation (NYSE:SCHW). That's about 3% of the company's workforce. The announcement comes a few weeks after the company's TD Ameritrade acquisition deal. SCHW is flat before the open, but down 17.7% year-to-date.
- J M Smucker Co (NYSE:SJM) is up 0.4% ahead of the bell, after announcing the sale of its Crisco shortening brand to B&G Foods (BGS) -- the company behind Green Giant and Cream of Wheat. The deal is worth $550 million in cash. Longer term, SJM is up 10.5% in 2020.
- Today's calendar looks busy, with data on durable goods orders and core capital goods orders, as well as the Case-Shiller national home index and Consumer confidence index. Meanwhile, 3M (MMM), Caterpillar (CAT), Eli Lilly (LLY), Enphase Energy (ENPH), First Solar (FSLR), JetBlue Airways (JBLU), Microsoft, Pfizer (PFE), and Raytheon Technologies (RTX) will all report earnings.
Rising COVID-19 Fears Hinder European Stock's
Stocks in Asia were mostly lower after today’s session, with the exception of China’s Shanghai Composite, which added 0.1%, amid data that China’s industrial firms jumped 10.1% year-over-year in September. Elsewhere, Japan’s Nikkei lost 0.04%, Hong Kong’s Hang Seng dropped 0.5%, though the city’s listed HSBC soared on a third-quarter profit beat. Lastly, the South Korean Kospi fell 0.6%, despite news that the country’s real gross domestic product (GDP) grew 1.9% in the third quarter.
Stocks in Europe are a mixed bag midday, as investors focus on the rising coronavirus cases and corporate earnings. London’s FTSE 100 is 0.2% higher, while the French CAC 40 and German DAX are down 0.6% and 0.05%, respectively.