Proposed Payroll Tax Cut Props Up Stock Futures
President Trump proposed a tax cut to combat the negative economic effects of COVID-19
Stocks are recovering some of yesterday's historic losses in pre-market trading today, as the Dow Jones Industrial Average (DJI) signals a nearly 900 point open. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also eyeing a significant pop, after U.S. President Donald Trump proposed the idea of "a payroll tax cut or relief"to help curb some of the negative effects the coronavirus has had on the U.S. economy. However, some Trump administration officials have said that specific proposals are far from being rolled out. Oil prices, meanwhile, are seeing a respite from yesterdays steep selloff, with April-dated crude futures last seen up 9.3% at $34.01 per barrel.
Continue reading for more on today's market, including:
Analyst sees promise for GrubHub stock as coronavirus fears deepen. Facebook stock in more hot water after Australian privacy breach allegation. Plus, Tesla makes its millionth car; SFIX unravels on forecast miss; and Dick's Sporting Goods surges after earnings.
5 Things You Need to Know Today
The Cboe Options Exchange (CBOE) saw 96.3 million call contracts traded on Monday, compared to 83.2 million put contracts. The single-session equity put/call ratio moved to 0.86, and the 21-day moving average was 0.65.Tesla Inc (NASDAQ:TSLA) is taking back some of yesterday's selloff, up 8.6% on an announcement from its CEO Elon Musk via Twitter (TWTR) that the electric automaker has now produced 1 million cars. The equity is looking to open back atop its 50-day moving average -- a trendline it breached yesterday for the first time since October. Online stylist Stitch Fix Inc (NASDAQ:SFIX) is limping out of the earnings confessional after posting fiscal second-quarter revenue of $451.78 million, which missed analyst estimates. The firm also posted fiscal third-quarter and full-year forecasts that fell below expectations, sparking no less than nine analyst price target cuts and bringing the equity down 29.2% in pre-market trading. Dicks Sporting Goods Inc (NYSE:DKS) is up 9.9% in early market trading after posting fourth-quarter profits of $1.32 on $2.61 billion in revenue for its fourth quarter, both of which exceeded analysts' estimates. The retailer also announced that it would be pulling guns from another 440 of its stores this year. The NFIB small business optimism index is due out today.
Markets in Asia, Europe Rebound
Markets in Asia participated in the bounce back today, as investors eye possible stimulus measures to combat the global COVID-19 outbreak. China's Shanghai Composite added 1.8%, while tech stocks Tencent and Alibaba lifted Hong Kong's Hang Seng 1.4%. Rounding out the region, South Korea's Kospi tacked on 0.4%, while Japan's Nikkei pared earlier losses to finish 0.9% higher.
In Europe, stocks are also trying to rebound from yesterday's global rout. Italy's government has extended its quarantine to the entire country and continues to be the worst-hit area outside of Asia. London's FTSE 100 is up 3.2%, while the French CAC 40 is up 2.9% thanks to a big day from automaker Renault. The German DAX is 2.4% higher at last check.