Dow Futures Inch Lower; Oil Prices Continue Higher

Stock futures are taking a breather this morning

On the heels of big daily and weekly wins for Wall Street in the previous session, stock futures are taking a breather. S&P 500 Index (SPX) futures are pointed at breakeven, while futures on the Dow Jones Industrial Average (DJIA) and Nasdaq-100 Index (NDX) are slipping into the red.

Recession and interest rate concerns linger in the face of a strong labor market, but oil prices surged after Saudi Arabia announced a crude output cut, and the Organization of the Petroleum Exporting Countries and their allies (OPEC+) maintained production targets for 2023.

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

  • Why options bulls blasted Trade Desk stock.
  • Our subscribers won big with this vertical debt spread.
  • Plus, PANW joining SPX; Target stock downgraded; and behind this regional bank stock’s surge.

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.8 million call contracts and 955,420 put contracts exchanged on Friday. The single-session equity put/call ratio fell to 0.52 and the 21-day moving average stayed at 0.69.
  2. Palo Alto Networks Inc (NASDAQ:PANW) will take Dish Network’s (DISH) spot on the SPX June 20. The security is surging in premarket trading, last seen up 5%, and could nab its eighth consecutive daily win, should today’s gains hold. Year-to-date, PANW has added 55.7%.
  3. Keybanc downgraded Target Corp (NYSE:TGT) to “sector weight” from “overweight,” warning that the retailer’s margins may suffer from student loan payments resuming. TGT is down 0.9% ahead of the open, and has shed more than 19% over the past nine months.
  4. Valley National Bancorp (NASDAQ:VLY) stock is up 5.9% before the bell, following an upgrade from J.P. Morgan Securities to “overweight” from “neutral.” The brokerage noted only 1% of the regional bank’s loans are Manhattan offices, making commercial real estate fears “overblown.” VLY shed 29.3% in the last 12 months, though. 
  5. Today features factory orders and the ISM services purchasing managers’ index (PMI).

Asian Markets Surge on Host of Economic Data

Asian markets rose on Monday, with Japan’s Nikkei jumping 2.2% to climb above the 32,000 mark for the first time since 1990. The debt ceiling bill success stateside gave sentiment a boost, as investors unpacked a host of economic data. China’s Caixin services purchasing managers’ index (PMI) rose to 57.1 in May, while Hong Kong’s composite PMI fell to 50.6. Japan’s services PMI, meanwhile, came in at 55.9, marking a record rate of expansion. Hong Kong’s Hang Seng added 0.8% for the day, while China’s Shanghai Composite and the South Korean Kospi tacked on 0.07% and 0.5%, respectively.

European bourses are mixed. London’s FTSE 100 is in the lead with a 0.5% pop, while the German DAX is 0.2% higher, and the French CAC 40 dips 0.1%. The Euro zone’s PMI fell to 52.8 in May, which is below estimates of 53.3, but still in growth territory above the 50 mark.