Stock Futures Cool as Wall Street Eyes $2 Trillion Stimulus Deal

Sen. Chuck Schumer called it the "largest rescue package in American history"

by Lillian Currens

Published on Mar 25, 2020 at 9:15 AM

Dow Jones Industrial Average (DJI) futures are eyeing modest gains this morning following last night's wild surge, with all eyes on the $2 trillion stimulus package negotiations that were finally agreed upon late last night. Republican Senate Majority Leader Mitch McConnell called the stimulus package "a war time level of investment in our nation," while Senate Minority Leader Chuck Schumer referred to it as "the largest rescue package in American history." Official terms of the deal have not been disclosed yet. Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures, however, are still swimming below breakeven before the bell. 

Continue reading for more on today's market, including: 

  • There may be a light at the end of the tunnel for this struggling China stock
  • Schaeffer's Senior Quantitative Analyst Rocky White breaks down what the market crash means for stocks' historical volatility
  • Plus, Nike enjoys an earning beat; J.P. Morgan upgrades KHC; and Whirlpool withdraws its full-year forecast. 

Futures Chart March 25

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.22 million call contracts traded on Wednesday, and 767,498 put contracts. The single-session equity put/call ratio rose to 0.63, and the 21-day moving average stayed at 0.85.
  2. Dow component Nike Inc (NYSE:NKE) is up 10.4% after stepping into the earnings confessional last night. The firm posted fiscal third-quarter profits of 78 cents per share and revenue of $10.1 billion, both of which beat analysts estimates. Nike said digital sales helped offset some of it's weaker sales in China, but added that business is rebounding in the region. Going into today, NKE was down 66% year-to-date.
  3. J.P. Morgan Securities upgraded Kraft Heinz Co (NASDAQ:KHC) to "overweight" fro "neutral," saying that the coronavirus-related surge in the packaged food business could help offset some of KHC's debts. The stock is up 0.7% in electronic trading, but the 20-day moving average still looms overhead.  
  4. Whirlpool Corporation (NYSE:WHR) joined the growing number of businesses withdrawing their 2020 outlook, based on COVID-19 uncertainty. The appliance specialist also said it would be slashing production in its U.S. plants. The equity is trading just below breakeven before the bell. In addition, Deutsche Bank cut its price target to $94 from $158. 
  5. Today's economic calendar will bring weekly crude inventories, durable goods orders, and core capital orders. On the earnings docket for the day are reports from Micron Technology, Cronos Group (CRON), and Paychex (PAYX).

Buzz Chart March 25

U.S. Stimulus Bill Gives Stocks in Asia a Boost

Asian markets are extending their rally today, boosted by the stimulus deal passed by U.S. lawmakers. Japan's Nikkei paced the region with an 8% win, with Fast Retailing once again leading the charge. South Korea's Kospi added 5.6%, while China's Shanghai Composite and Hong Kong's Hang Seng gained 2.2% and 3.8%, respectively.

Over in Europe, stocks are more of a mixed bag, as lackluster economic data weighs on indexes. London's FTSE 100 is 1.2% higher at last check, despite consumer price inflation retreating last month by a lower-than-expected margin. The French CAC 40 is up 1.5% while the German DAX is down 1.1%, after Ifo business climate index fell to its lowest level since 1990.


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