U.S. stock market index futures fell Monday morning as a recent jump in coronavirus cases in China and the U.S. doused investor hopes of a rapid economic rebound, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
China implemented new measures to curb the spread of the coronavirus after a food market saw a spike in cases. A record of new infections was also reported in more U.S. states, including Texas and Florida, over the weekend.
Travel stocks were hit hard in premarket trading as passenger numbers fell on Monday with United Airlines Holdings Inc. (Nasdaq: UAL), American Airlines Group Inc. (Nasdaq: AAL), Carnival Corp. (NYSE: CCL) and Norwegian Cruise Lines Holdings Ltd. (NYSE: NCLH) dropping between 7% and 10%.
The VIX volatility index, a gauge of investor anxiety, jumped to its highest level since April 22 at 44.44 points.
Wall Street’s main indexes finished higher on Friday, but marked their worst week since the March sell-off, following the Federal Reserve’s sobering economic outlook and fears of a second wave of infections.
Earlier last week, the tech-heavy Nasdaq confirmed it was in bull market territory, and broke over 10,000 points for the first time ever.
As of 9:20 a.m. EDT, Dow Jones futures were down 2.26%. S&P 500 futures dropped 1.92% and Nasdaq futures were down by 1.25%.
Stocks to Watch Today
Moderna Inc. (Nasdaq: MRNA) — The American biotech company is reportedly in talks to sell its coronavirus vaccine to Israel. The news comes as Moderna said it was entering late-stage testing of its COVID-19 vaccine candidate. Shares of Moderna were up 4.6%
Hertz Global Holdings Inc. (NYSE: HTZ) — A bankruptcy judge is allowing the rental car company to sell up to $1 billion in potentially worthless stock. The ruling was part of a bankruptcy order for the company. Shares of Hertz fell 23%.
iRobot Corp. (Nasdaq: IRBT) — Shares of the technology company were up more than 11% in premarket trading after it reported a stronger demand for its products in the second quarter. The company said its quarterly sales could be $70 million more than in the first quarter.
Retail Investor Stock Picks Beating Hedge Fund Picks, Analysts Say
Mom-and-pop stock picks are beating those made by hedge funds and mutual funds, analysts at Goldman Sachs Group Inc. (NYSE: GS), say.
Stocks popular with individual investors surged 61% since the bear market trough compared to a gain of 45% for both hedge fund and mutual fund picks, according to Bloomberg. The S&P 500 Index is up 36%.
Analysts said daily turnover in retail favorites were up as were speculative options.
Chinese Consumers Fuel Spark in Economic Recovery
An increase in big-ticket purchases like homes and cars led to an improvement in the world’s second-largest economy.
As reported by The Wall Street Journal, Chinese officials released data indicating a slight fall in unemployment in May as well as an increase in industrial production.
Retail sales in China did decline, but much less than April’s decline, fueled by a jump in auto sales from a year earlier.
BP Writing Off Billions Due to Demand
BP plc (NYSE: BP) expects to write down nearly $17.5 billion as the coronavirus pandemic shifted demand from oil to other forms of energy.
It will be the biggest write-down in a decade for the British-based oil company, according to Bloomberg. The company also forecast the price of oil and gas being 20% to 30% cheaper in the coming decades.
What We’re Reading
2 Monthly 7% Dividends With an ‘On Switch’ for Gains (Money & Markets)
Return of the Road Trip Makes This Company a Buy Ahead of Summer (Money & Markets)
How to Fund Your Retirement in a World of Zero Fed Interest Rates (Money & Markets)
Earnings Report
Here are the companies releasing earnings reports today:
Centogene NV (Nasdaq: CNTG)
Limbach Holdings Inc. (Nasdaq: LMB)
Motorcar Parts of America Inc. (Nasdaq: MPAA)
Tata Motors Limited ADR (NYSE: TTM)
Townsquare Media Inc. (NYSE: TSQ)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.