The Federal Reserve cut interest rates yesterday
Stock futures are quiet this morning, following a busy week that brought in a new President elect, a subsequent market rally, and an interest rate cut from the Federal Reserve. The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are headed for their best weeks since November 2023, despite struggling for direction before the bell today. Meanwhile, oil prices are moving lower after China's stimulus package appears to have disappointed traders.
Continue reading for more on today's market, including:
- Back to basics: 2 stock market strategies companies use.
- Lyft stock fared a lot better than rival Uber after earnings.
- Plus, 2 stocks making outsized post-earnings moves; and BNTX jumps on upgrade.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw over 2.6 million call contracts and more than 1.2 million put contracts exchanged on Thursday. The single-session equity put/call ratio fell to 0.47 and the 21-day moving average remained at 0.62.
- Upstart Holdings Inc (NASDAQ:UPST) is up 15.6% premarket, extending its recent rally after the company posted narrower-than-expected losses of 6 cents per share, a revenue beat, and upbeat current-quarter forecast. Should these gains hold, UPST will open at 52-week highs.
- On the flip side, Pinterest Inc (NYSE:PINS) is down 11.9% before the bell, after the image-sharing platform announced disappointing fourth-quarter guidance. Year to date, the equity is down 8.4%.
- Shares of BioNTech SE ADR (NASDAQ:BNTX) are up 4.2% in electronic trading, following an upgrade from Goldman Sachs to "buy" from "neutral." The Germany-based biotech name is up 8.2% in the last 12 months.
- Key inflation data due out next week.
All Eyes on Germany's Government
Asian markets moved mostly lower to end the week, reacting to the Fed rate cut stateside as well as economic updates across the region. Japan’s Nikkei added 0.3%, even though household spending slowed in September and auto giant Nissan gapped lower after an earnings whiff. The Shanghai Composite gave back 0.5%, after the country signed off on a $1.4 trillion plan to aid local governments. The Hang Seng lost 1.1%, after Hong Kong’s monetary authority trimmed its interest rate in lockstep with the Fed. South Korea’s Kospi shed 0.1%.
Over in Europe, bourses are moving lower. The German DAX is down 0.7% at last check, after Chancellor Olaf Scholz removed Finance Minister Christian Lindner and appointed Jorg Kukies, essentially dissolving a ruling coalition and likely triggering a snap election. Mining stocks are also in the red today, with Antofagasta dragging London’s FTSE 100, the latter last seen down 0.6%. The French CAC 40 is off by 0.9%, at last check.