Futures rebound from last week's decline
01-Feb-21 07:58 ET
Market is Closed
[BRIEFING.COM] S&P futures vs fair value: +37.60. Nasdaq futures vs fair value: +144.00. The S&P 500 futures trade 38 points, or 1.0%, above fair value as the market tries to rebound from last week's steep decline that briefly carried over to the futures market. Investors are buying the dip while assessing the latest updates on the short-squeeze mania.
Brokerage firm Robinhood has kept trading restrictions in place for certain stocks like GameStop (GME 301.00, -34.00, -7.4%) and AMC Entertainment (AMC 15.00, +1.74, +13.1%). GME and AMC shares trade mixed in pre-market action, but one new asset to watch is silver as traders have targeted the metal as another short-squeeze candidate.
Silver futures are currently up 11.5% to $30.01/ozt -- its highest price in nearly eight years. Overall, nothing too wild just yet, which may be supporting risk sentiment.
In positive-sounding developments, AstraZeneca (AZN 51.44, +0.84, +1.7%) will reportedly increase its COVID-19 vaccine deliveries by 30% in Europe, Tesla (TSLA 819.85, +26.32, +3.3%) had its price target raised to a Street-high $1200 from $515 at Piper Sandler, and Thermo Fisher (TMO 519.00, +9.30, +1.8%) beat top and bottom-line estimates.
On the data front, investors will receive the final IHS Markit Manufacturing PMI for January at 9:45 a.m. ET, followed by the ISM Manufacturing Index for January (Briefing.com consensus 60.1%) and Construction Spending for December (Briefing.com consensus 0.8%) at 10:00 a.m. ET.
U.S. Treasuries trade near their flat lines. The 2-yr yield is flat at 0.11%, and the 10-yr yield is down one basis point to 1.08%. The U.S. Dollar Index is up 0.3% to 90.84. WTI crude futures are up 1.0%, or $0.55, to $52.74/bbl.
In U.S. Corporate news:
- Tesla (TSLA 819.85, +26.32): +3.3% after its price target was raised to a Street-high $1200 from $515 at Piper Sandler.
- Thermo Fischer (TMO 519.00, +9.30): +1.8% after beating top and bottom-line estimates.
- First Majestic Silver (AG 24.86, +5.71): +37.2% as the silver miner benefits from the 11% rise in silver prices.
- Virgin Galactic (SPCE 48.55, +4.26): +9.6% after providing a new flight window for its next test flight. Specifically, the flight window will open on February 13 with opportunities to fly throughout the month.
Reviewing overnight developments:
- Equity indices in the Asia-Pacific region began the week on a higher note with Sensex jumping 5.0% after the release of India's budget for 2021. Japan's Nikkei: +1.5% Hong Kong's Hang Seng: +2.2% China's Shanghai Composite: +0.6% India's Sensex: +5.0% South Korea's Kospi: +2.7% Australia's ASX All Ordinaries: +0.8%.
- In economic data:
- China's January Manufacturing PMI 51.3 (expected 51.6; last 51.9) and Non-Manufacturing PMI 52.4 (last 55.7). January Caixin Manufacturing PMI 51.5 (expected 52.7; last 53.0)
- Japan's January Manufacturing PMI 49.8 (last 49.7)
- South Korea's January Nikkei Manufacturing PMI 53.2 (last 52.9). January trade surplus $3.96 bln (last $6.77 bln). January Imports 3.1% yr/yr (expected 1.9%; last 2.2%) and Exports 11.4% yr/yr (expected 9.8%; last 12.6%)
- Australia's January AIG Manufacturing Index 55.3 (last 52.1) and January Manufacturing PMI 57.2 (last 55.7). January Home Loans 7.1% m/m (last 5.5%) and ANZ Job Advertisements 2.3% m/m (last 8.6%)
- India's January Nikkei Markit Manufacturing PMI 57.7 (expected 56.0; last 56.4)
- In news:
- China's Manufacturing PMI expanded for the 11th consecutive month, though the pace of expansion slowed for the second month in a row.
- Australia's Manufacturing PMI remained at its highest level since December 2016. Xiaomi filed a lawsuit against the U.S., alleging immediate and irreparable harm from being blacklisted.
- Myanmar's leader was arrested after the country's military seized power.
- Major European indices trade on a firmly higher note. STOXX Europe 600: +1.4% Germany's DAX: +1.5% U.K.'s FTSE 100: +1.2% France's CAC 40: +1.4% Italy's FTSE MIB: +1.0% Spain's IBEX 35: +0.9%.
- In economic data:
- Eurozone's December Unemployment Rate 8.3%, as expected (last 8.3%). January Manufacturing PMI 54.8 (expected 54.7; last 54.7)
- Germany's December Retail Sales -9.6% m/m (expected -2.6%; last 1.1%); 1.5% yr/yr (expected 5.0%; last 5.0%). January Manufacturing PMI 57.1 (expected 57.0; last 58.3)
- U.K.'s December Mortgage Approvals 103,380 (expected 105,000; last 105,320) and Mortgage Lending GBP5.59 bln (expected GBP5.59 bln; last GBP5.73 bln). January Manufacturing PMI 54.1 (expected 52.9; last 52.9)
- France's January Manufacturing PMI 51.6 (expected 51.5; last 51.5)
- Italy's December Unemployment Rate 9.0% (expected 8.8%; last 8.8%) and January Manufacturing PMI 55.1 (expected 52.4; last 52.8)
- Spain's January Manufacturing PMI 49.3 (expected 50.9; last 51.0)
- Swiss December Retail Sales 4.7% yr/yr (last 1.8%) and January procure.ch PMI 59.4 (expected 57.0; last 58.0)
- In news:
- There is growing speculation that former European Central Bank President Draghi could become Italy's next prime minister.
- ECB chief economist Lane said that purchases of equities or bank bonds are not being considered at this time.
- Royal Dutch Shell expects to maintain its current oil and gas production levels until 2030.
- Moody's affirmed Germany's AAA rating with a Stable outlook.
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