Dow futures are slightly below fair value this morning
Futures on the Dow Jones Industrial Average (DJI) are trading slightly below fair value this morning, reversing course from yesterday's stimulus-fueled optimism as the number of coronavirus cases across the country continues to rise, and restrictions in many states dampen hopes of a smooth economic recovery. Meanwhile, futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are mostly flat. On the flip side, helping keep a cap on early losses is news Pfizer (PFE) and BioNTech (BNTX) are applying for emergency use authorization from the Food and Drug Administration (FDA) for their coronavirus vaccine today. Within hours of approval, the companies said they will be ready to ship doses.
Continue reading for more on today's market, including:
- Retail stock attracts bulls after stellar earnings report.
- Texas Roadhouse stock may be the right call for contrarians.
- Plus, Williams-Sonoma bests quarterly estimates; luxury retail stock gets lofty upgrade; and World Health Organization (WHO) shuns COVID-19 treatment.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.8 million call contracts traded on Thursday, and 859,335 put contracts. The single-session equity put/call ratio rose to 0.46 and the 21-day moving average stayed at 0.49.
- Williams-Sonoma, Inc. (NYSE:WSM) is up 7% in pre-market trading, after the home goods retailer reported better-than-expected third-quarter earnings and revenue. The company attributed the blowout results to digital sales jumping 49%, which helped it post record operating profit margins. Year-over-year, WSM is up roughly 50%.
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Capri Holdings Ltd (NYSE:CPRI) is up 4.6% before the bell, after the luxury fashion company, which is parent to brands such as Michael Kors and Versace, received an upgrade to "buy" from "neutral" at BTIG. The analyst in question said the company's rebound and current valuation level are underappreciated. In the last six months, CPRI has gained 129.9%.
- The shares of Eli Lilly And Co (NYSE:LLY) are down 0.8% in electronic trading, after the company received emergency use authorization from the FDA to combine its arthritis drug barictinib with Gilead Sciences' (GILD) remdesivir to treat severe COVID-19 cases. The World Health Organization (WHO) today has advised against the use of remdesivir, however. Year-over-year, LLY is up 25%.
- The week ends on a dull note, with no noteworthy economic data.
Asian, European Markets Close Higher Despite Rising COVID-19 Infections
Asian stocks finished Friday mostly higher, with the short-term economic impact of rising global coronavirus cases at the forefront of investors’ minds. Mainland stocks notched a win, with Hong Kong’s Hang Seng and China’s Shanghai Composite each tacked on 0.4%, respectively. Rounding out the region, South Korea’s Kospi rose 0.2%. Still, Japan’s Nikkei lost 0.4%, after the sharp declines of core consumer prices and factory activity.
In Europe, the markets are trading higher, despite rising COVID-19 cases and the U.S. Treasury’s decision to let pandemic relief lending programs expire at the end of December. In response, London’s FTSE 100, France’s CAC 40, and the German DAX were all last seen 0.4% higher.