Stock Futures Looking to Bounce Off Harsh Weekly Losses

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The Dow is up over 400 points before the bell

It was a quiet long weekend on Wall Street, with last week’s interest rate hike still fresh in investors’ minds. Futures on the Dow Jones Industrial Average (DJIA) are up over 400 points ahead of the open, as the broader market attempts to recover from the last three weeks of losses. S&P 500 Index (SPX) and Nasdaq-100 (NDX) futures are on the rise as well, following the former’s worst week since March of 2020

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

  • Senior V.P. of Research Todd Salamone monitors the recent surge in VIX call buying
  • Incase you missed it: the most recent episode of Schaeffer’s Market Mashup
  • Plus, K rises on company split; PFE stake sends VALN soaring; and SCHW receives an upgrade.

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts and over 1 million put contracts traded on Friday. The single-session equity put/call ratio fell to 0.72, and the 21-day moving average stayed at 0.64.
  2. Kellogg Co (NYSE:K) is up 6.5% premarket, after news that the food giant plans to split into three separate public companies — snack and international cereal business, another U.S. cereal business, and a pure-play plant-based food producer. Heading into today, the stock is up 4.8% year-to-date. 
  3. Valneva SE ADR (NYSE:VALN) is soaring in electronic trading, up 84.7%, after Pfizer (PFE) agreed to buy an 8.1% stake in the French biotech name for over $95 million. The two companies are already working together on Lyme disease treatments. 

  4. UBS upgraded Charles Schwab Corporate (NYSE:SCHW) to “buy” from “neutral,” with a price-target hike to $75 from $68. SCHW is up 3.4% before the bell, and looking to bounce off its recent lows. 

  5. Today will bring The Federal Reserve Bank of Chicago’s national activity index and an existing home sales report.  

International Markets on the Rise as Well

Asian markets were mostly higher on Tuesday, with the exception of the Shanghai Composite in China, which fell 0.3%. Investors kept an eye on Bitcoin’s (BTC) rise, as well as Australia’s central bank projections that inflation will hit its peak by the end of 2022. In response, the Nikkei in Japan added 1.8%, the South Korean Kospi rose 0.8%, and the Hong Kong Hang Seng added 1.9%.

In Europe, stocks are also on the rise, as investor sentiment around the globe brightens. Traders are also trying to look past last week’s Fed decision in the U.S., as well as the Bank of England’s (BoE) fifth-straight interest rate hike. At last check, the London FTSE 100 is 0.5% higher, the French CAC 40 is up 0.9%, and the German DAX has added 0.3%.