Recession warnings still loom large, however
Stocks are looking to add to Monday's impressive rally, with futures on the Dow Jones Industrial Average (DJI) pointed more than 500 points higher, and sitting comfortably above the closely watched 30,000 mark. Meanwhile, the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are both up over 2% ahead of the open, as investors pore over strong earnings from the likes of Johnson & Johnson (JNJ) and Goldman Sachs (GS).
Though sentiment is upbeat this morning, recession warnings still loom large. In fact, Goldman Sachs CEO David Solomon warned that there is a "good chance" the U.S. economy will sink into a recession, and that business leaders should act accordingly.
Continue reading for more on today's market, including:
- A bullish case for Marathon Oil stock.
- Why options bears are targeting Alcoa stock.
- Plus, Meta forced to sell Giphy; HAS shares profit miss; and AMZN named top pick.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.09 million call contracts and 663,978 put contracts traded on Monday. The single-session equity put/call ratio fell to 0.61, while the 21-day moving average stayed at 0.68.
- Meta Platforms Inc (NASDAQ:META) is back in the spotlight after U.K. antitrust regulators reordered it to sell its GIF unit Giphy. Despite this, META is up 2.3% in premarket trading, adding to yesterday's 5.7% pop.
- The shares of Hasbro, Inc. (NASDAQ:HAS) are lower ahead of the bell, last seen down 0.3%, after the company's third-quarter earnings of $1.42 per share missed estimates, while revenue fell in line with expectations. Earlier this month, Hasbro lowered its sales outlook, noting inflation issues. The stock has shed 33.5% this year.
- Amazon.com, Inc. (NASDAQ:AMZN) is adding to yesterday's impressive 6.5% jump, up 3.8% ahead of the bell ,after Citigroup named the e-commerce giant a top pick, noting that AMZN would perform well in both hard and soft economic landing scenarios.
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The industrial production index, the capacity utilization rate, and the NAHB home builders' index will all be due out shortly after the open today.
China Delays Release of GDP Data
Asian markets settled mostly higher Tuesday, though at least one economist is speculating that China is “managing the message,” after the country delayed the release of its gross domestic product (GDP) and other economic data. This move runs simultaneous to the Communist Party of China’s 20th National Congress. Austin Goolsbee, an economist and professor at the University of Chicago Booth School of Business said on CNBC’s Squawk Box Asia, “Given the obvious economic negative impact of the zero-Covid policy…that probably was going to show up in the GDP data and they just didn’t want to have that coming up.” In response, Hong Kong’s Hang Seng added 1.8%, while Japan’s Nikkei and South Korea’s Kospi both tacked on 1.4%. China’s Shanghai Composite, meanwhile, shed 0.1%.
European stocks trending up as well, after the U.K. reversed fiscal policy on Monday, with new Finance Minister Jeremy Hunt scrapping most of Prime Minister Liz Truss’ policies. The move sent the British pound and bond yields tumbling, while the European Union (EU) is expected the propose new emergency energy measures today in response to rising prices. At last glance, London’s FTSE 100 and France’s CAC 40 are both 1.1% higher, and Germany’s DAX has added 1.6%.