Stock futures see sudden halt in October rally
The S&P 500 just made its biggest two-day gain since March 2020
Stock futures are taking a break from October’s two-day rally, with Dow Jones Industrial Average (DJI) futures forecast for a 288-point drop. Futures on the Nasdaq-100 (NDX) and S&P 500 (SPX) are also deep in the red as the latter breaks out of its best gain over two days since March 2020. Meanwhile, bond yields are back up, although the 10-year Treasury yield is still below last week’s highs of nearly 4%.
Wall Street is also unpacking the latest ADP jobs report, showing companies added 208,000 jobs in September. The number beat estimates and marked a rise from the August reading.
Keep reading to learn more about the current market, including:
- It’s time to bet on a slowdown for Ross store stock.
- Options bulls came to this booming biotechnology name.
- Also, Musk puts the TWTR deal back on the table; and 2 big names attracting bullish notes.
5 things you need to know today
- The Cboe Options Exchange (CBOE) recorded more than 1.14 million buy contracts and 733,697 sell contracts traded on Tuesday. The single-session sell-to-buy ratio fell to 0.64, while the 21-day moving average remained at 0.68.
- After month of drama and a lawsuit, Tesla (TSLA) CEO Elon Musk again offers a Twitter Inc. (NYSE: TWTR) to resume. Musk wants to buy TWTR for its initial bid of $54.20 per share. In response, the social media stock is down 0.7% before the bell. Year-to-date, however, TWTR has added 20.3%.
- Bernstein launched the cover of Airbnb Inc (NASDAQ: ABNB) with a “outperform” rating and a price target of $143 today – a nearly 30% premium to Tuesday’s close. The stock was last seen up 0.6% in premarket trading, but remains down 33.4% in 2022.
- Morgan Stanley just hit Ford Motor Company (NYSE:F) with an upgrade, increasing his rating from “overweight” to “equal weight”. The analyst noted a buy opportunity in the stock price recent low. Ford Motor stock was last seen up 1.1%, although it has struggled to ameliorate an ugly 40.5% year-to-date deficit.
- There are a lot of things on the file todayincluding International Trade Balance data, Pending Home Sales Index, S&P Services PMI and ISM Services Index.
Eurozone PMI hits 20-month low
Stocks in Asia surged again on Wednesday. Hong Kong’s Hang Seng gained 5.9% on its return from vacation, supported by technology and banking stocks. Meanwhile, Japan’s Nikkei rose 0.5% and South Korea’s Kospi rose 0.3%, after the country’s consumer price index (CPI) showed a decline. inflation in September. China’s Shanghai Composite, meanwhile, remained closed for the Golden Week holiday.
European markets are pulling back today, after the Eurozone Composite Purchasing Managers’ Index (PMI) hit a 20-month low in September. At last check, London’s FTSE 100 is down 1% and France’s CAC 40 is down 0.7%. In Germany, the DAX is down 0.9%, after a survey by the Ifo Institute showed more companies plan to raise food, gas and electricity prices.