The 10-year Treasury yield remains in focus
Stock futures are eyeing modest gains this morning, with the Dow Jones Industrial Average (DJI) pointed over 150 points higher, while the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) linger just above fair value. The Nasdaq is looking at a muted pop following yesterday's wild rally, with the 10-year Treasury yield once again in focus as investors eye muted inflation data, which fell in-line with estimates at 0.4%. Wall Street is also looking toward this afternoon's 10-year Treasury auction of $38 billion in notes to provide guidance on the direction of rates going forward. Meanwhile, the $1.9 trillion stimulus bill is set to be passed by House Democrats this morning, while checks to individuals are expected to be sent starting this month.
Continue reading for more on today's market, including:
- Should you fear the Nasdaq's latest correction?
- Morgan Stanley stock could nab fresh highs, if history is any indicator.
- Plus, Eli Lilly jumps on positive Covid-19 treatment study; EXPR sees surprise post-earnings pop; and LEVI Chairman retires.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.65 million call contracts traded on Tuesday, and 690,668 put contracts. The single-session equity put/call ratio fell to 0.42 and the 21-day moving average stayed at 0.45.
- Eli Lilly and Co (NYSE:LLY) just announced that its combination Covid-19 antibody drug reduced hospitalization and death in patients with the virus by 87% during its phase 3 trial. The equity is slightly higher in response, last seen up 0.9% ahead of the open and 52% higher year-over-year.
- The shares of clothing retailer Express, Inc. (NYSE:EXPR) are surging in the premarket, last seen up 25.1%, after the company posted a much smaller-than-expected loss per share for its fourth quarter. Revenue also topped estimates, though same-store sales came in worse-than-expected. The stock suffered a 16.1% drop during yesterday's pre-earnings session, though in the last three months, EXPR has nearly tripled.
- Another apparel retailer in the spotlight today is Levi Strauss & Co. (NYSE:LEVI), following news that its Chairman Stephen Neal will resign on March 26. Stephen has reached mandatory retirement age at 72 and will be replaced by chairman of Levi Strauss' board Robert Eckert. LEVI is down 0.9% ahead of the open, coming off yesterday's all-time high of $25.10.
- Today's calendar will pick up slightly, with the CPI and core CPI for February both due out. Later in the day, the most recent Federal budget balance will be released.
Asian Markets Mixed as Investors Eye Bond Yields
Asian markets finished today mixed, after benchmarks in the region gave back earlier gains. However, retreating bond yields and a comeback from major tech stocks kept more substantial losses in check. Hong Kong’s Hang Seng walked away 0.5% higher, while Japan’s Nikkei tacked on a marginal win. Elsewhere, China’s Shanghai Composite lost 0.1%, and South Korea’s Kospi rounded out the region with a 0.6% loss.
Stocks in Europe are mixed as well at midday, failing to capitalize on Wall Street’s latest tally. Meanwhile, a round of earnings reports poured in from names like Adidas, The Restaurant Group, and Geberit that could give investor sentiment a boost. At last check, France’s CAC 40 and the German DAX are up 0.7% and 0.4%, respectively, and the London FTSE 100 is off 0.2%.