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Thomas Hughes
Wall street in New York

Futures Trading Is Volatile In The Overnight Session

The U.S. futures are indicating a positive open on Tuesday following a volatile evening of trading. The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite are looking to open with gains in the range of 2.5%. Earlier in the session, trades on all three major indices hit their limit-up triggers of +5.0%. The moves come a day after the major indices posted their largest declines of the selloff. The Dow posted its third-worst decline ever while the NASDAQ set a record.

The S&P 500 is down about 30% from its most recent high and may be nearing a bottom. Another 3% or so will put the index at the lows of 2018 and what many traders consider critical support.  If the index moves below this level it could signal a much deeper decline for U.S. stocks.

Overnight, President Donald Trump tweeted the U.S. will support the industries hurt worst by the virus. This morning’s news includes rumors Treasury Secretary Steve Mnuchin will ask Congress for an aid package worth $850 billion. If passed, the bill would provide emergency funding for key industries as well as U.S. workers.

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The Threat To U.S. Economy Is Spreading

The number of cases globally has risen to over 170,000. The number of cases in the U.S. now tops 4,280 with over 70 dead. All 50 states report a growing number of cases and intensifying efforts to control the spread. Businesses like McDonald’s are closing their dining rooms while ramping up take-out services. eCommerce giant Amazon says it needs to hire 100,000 new workers to meet the rising demand.

Shares of Regeneron are moving higher in early trading. The company is speeding up the timeline for its Covid-19 therapy/vaccine and sees it entering human trials by late spring. Shares of the stock, among other healthcare equities, have been holding up well during the crisis and moving higher by 10% today.

Retail In Focus This Morning

Retail sales were reported this morning and show a net-decline in sales for February. The headline figure came in at -0.5% versus an expectation for increase. At the core-level, retail sales are down but the YOY comparisons are much better. YOY, retail sales are tracking 4.3% higher than last year. Sales for the three-month period ending February 2020 are up 4.9% from last year.

In stock news, retailer Land’s End reported this morning. The seller of specialty outdoor clothing reported a 9.4% increase in revenue that beat consensus estimates. Shars of the stock are moving lower despite the beat due to the worsening outlook for discretionary spending.

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