Investors used Thursday’s nosedive fueled by fear of a second wave of coronavirus as a buying opportunity, pushing U.S. stock market futures up in a rebound swing Friday morning, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
All three major U.S. stock indexes jumped higher at the opening bell after experiencing the worst day of trading in three months Thursday. The S&P 500 closed around 6% lower, erasing most of its gains for the month.
Investors also hedged their bets on a smooth reopening of the economy after new COVID-19 cases in the U.S. increased for the first time, a sign that a second wave of the novel virus may hit the country that has already confirmed around 2 million cases, according to The New York Times.
Big U.S. lenders including Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C) and Morgan Stanley (NYSE: MS) rose between 3% and 7% in morning trading after taking a hammering earlier this week.
The CBOE volatility index also eased about 4.8 points after spiking to 40, its highest level since April 23.
Stocks to Watch Today
Adobe Inc. (Nasdaq: ADBE) — The software company responsible for Photoshop and many other creative applications posted record quarterly revenue of $3.13 billion, representing 14% year-over-year growth and beating projections. The stock was up 2.4% in morning trading.
Lululemon Athletica Inc. (Nasdaq: LULU) — Shares of the yoga apparel maker fell almost 1.8% in the morning after its earnings report did meet expectations for the first time in three years. Net revenue came in at $652 million in the first quarter ended May 3, below expectations of $688.4 million, according to Refinitiv IBES data.
Microsoft Corp. (Nasdaq: MSFT) — Big tech has been a bit of a darling in the recent rally off March lows. Microsoft fell by more than 5% Thursday, though, presenting a possible buying opportunity. Shares were trading 2.4% higher Friday morning.
JP Morgan: Saudi Oil Market Share Set to Hit Highest Since 1980s
Saudi Arabia’s share of the oil market is set to rise this decade to its highest since the 1980s as investment in production elsewhere dries up in the wake of the coronavirus crisis, J.P. Morgan said in a report.
Oil prices have plunged more than 40% this year after an unprecedented collapse in demand, prompting oil and gas companies to announce spending cuts that will total $625 million by the end of the decade, according to the Wall Street bank.
The investment crunch will lead to a loss of output that is set to push benchmark Brent oil prices to $60 a barrel within two years, J.P. Morgan analyst Christyan Malek told Reuters.
ECB Poll Hints at More Easing After Fed’s Pledge
It looks like the Fed isn’t the only one committed to keeping the economy in check.
A recent Reuters poll of the European Central Bank found it is going to continue providing stimulus to help the European economy survive amid the coronavirus pandemic. The ECB expanded its bond-buying effort by $600 billion to $1.35 trillion June 4.
Central Bank Symposium Won’t Happen in Jackson Hole, WY This Year
The world’s top central bankers will have to break a 40-year tradition of meeting in Jackson Hole, Wyoming for the Federal Reserve Bank of Kansas City’s annual monetary policy symposium thanks to the coronavirus.
Central bankers instead will hold a virtual meeting Aug. 27-28 that will focus on: “Navigating the Decade Ahead: Implications for Monetary Policy.”
What We’re Reading
Return of the Road Trip Makes This Company a Buy Ahead of Summer (Money & Markets)
Coronavirus Pandemic Makes Unemployment Calculation Harder (The Wall Street Journal)
What the Buffett Indicator Tells Us About the Highest Market Valuation Ever (Money & Markets)
Here are the companies releasing earnings reports today:
Azure Power Global Ltd. (NYSE: AZRE)
FuelCell Energy Inc. (Nasdaq: FCEL)
Globus Maritime Ltd. (Nasdaq: GLBS)
Optical Cable Corp. (Nasdaq: OCC)
Party City Holdco Inc. (NYSE: PRTY)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.
Reuters contributed to this report.