Bailout Bill Optimism Gives Stock Futures Big Boost
Schumer and Mnuchin are optimistic that an stimulus bill agreement will soon be reached
Dow Jones Industrial Average (DJI) futures are swinging higher in early market trading, up over 900 points before the bell. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are seeing sizable swings of their own, with all three indexes hitting their "limit up" earlier. This morning's market surge comes from news that Senate Minority Leader Chuck Schumer and Treasury Secretary Steve Mnuchin plan on continuing stimulus bill negotiations this morning, with both parties optimistic that an agreement will be reached shortly.
Continue reading for more on today's market, including:
What stopped Nike stock dead in its tracks just before earnings. The Verizon rival Cowen likes right now. Plus, IHS Markit's earnings beat; a bull note for Dollar Tree stock; and GILD's coronavirus treatment gets FDA approval.
5 Things You Need to Know Today
The Cboe Options Exchange (CBOE) saw 1.09 million call contracts traded on Monday, and 679,682 put contracts. The single-session equity put/call ratio fell to 0.62, and the 21-day moving average climbed to 0.85. IHS Markit Ltd (NYSE:INFO) is up 5% before the bell after posting first-quarter earnings of 66 cents which beat analysts' estimates, while its revenuefell in line with estimates. INFO added that it has a strong plan to deal with the changing economic climate and reiterated its full-year forecast. Dollar Tree, Inc. (NASDAQ:DLTR) is up 4.8% this morning after Telsey Advisory Group upgraded the discount retailer to "outperform" from "market perform." The analyst commended DLTR's product mix and said the firm is well-positioned to gain market share and attract traffic. Gilead Sciences, Inc. (NASDAQ:GILD) is in the spotlight once again, up 4.3% after it's experimental drug remdesivir -- viewed as a potential treatment for the coronavirus -- was granted orphan drug designation by the Food and Drug Administration (FDA). This designation gives remdesivir seven-year marketing exclusivity and tax incentives. GILD is up 11.7% in 2020.Due out today is data on new home sales, the Markit manufacturing Purchasing Managers' Index (PMI) and the Markit services PMI. Meanwhile, Nike and Carnival (CCL) will report earnings.
Asia, Europe Encouraged by Stimulus Efforts
Asian stocks roared to life today, with investors encouraged by the progress countries such as the U.S. and Germany are making in injecting stimulus measures to prop up the global economy. Japan's Nikkei added 7.1%, with Fast Retailing and SoftBank each bagging double-digit gains. South Korea's Kospi paced the region with an 8.6% win. Elsewhere, China's Shanghai Composite rose by 2.3%, while Hong Kong's Hang Seng gained 4.5%, given a boost by tech giant Tencent.
Over in Europe, markets are also propped up by stimulus optimism and the Fed's money printing actions yesterday. There's also encouragement in Italy, after the country reported the smallest daily increase in new coronavirus cases for the second straight day on Monday. London's FTSE 100 is up 4.2% at last check, with U.K. prime minister Boris Johnson announcing stricter lockdown measures. The German DAX and French CAC 40 are up 6% and 4.3%, respectively.