Stock market index futures moved higher on Friday as investors bet on more government stimulus to drive a post-pandemic economic revival, even as COVID-19 cases saw another record rise, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
Investors continued to hold out hope for more fiscal support to aid the U.S. economy rocked by the coronavirus pandemic.
The program that offers additional weekly $600 checks for the unemployed ends this month, leaving millions of gig workers and self-employed among others without income.
The S&P 500 and Dow Jones indexes have risen so far this week on promising data for a COVID-19 vaccine, which has helped investors look past a record-breaking increase on new virus cases in the U.S.
The Nasdaq, in contrast, has fallen about 1.4% since last Friday’s record closing high as investors rotated out of technology stocks and into more cyclical sectors.
As the second-quarter earnings season gets underway, investors continue to look for clues on a path to economic recovery. Stimulus measures and improving economic data have helped the S&P 500 move to within 5% of its February record high.
As of 9:15 a.m. EDT, Dow Jones futures were up 0.43%. S&P 500 futures moved up 0.57% and Nasdaq futures were 1.05% higher.
Stocks to Watch Today
JB Hunt Transport Services Inc. (Nasdaq: JBHT) — The transportation and logistics company reported quarterly earnings of $1.14 per share — above the $0.80 forecast by Wall Street. Revenue also exceeded expectations. Shares of JB Hunt were up 2.4% in premarket trading.
Netflix Inc. (Nasdaq: NFLX) — The media streaming company traded down 8.7% in premarket trading after posting earnings of $1.59 per share — well below Wall Street expectations of $1.81. The company said it added 10.1 million new subscribers in the quarter.
BlackRock Inc. (NYSE: BLK) — The global investment management corporation reported earnings of $7.85 per share — a 22.5% jump from the same period a year ago. The increase was attributed to $100 billion in client inflows. Shares of BlackRock were up 0.3%.
Active Fund Managers Trail the S&P 500 for 9th Straight Year
A report issued by S&P Dow Jones Indices found that active fund managers continue to trail their benchmarks in returns.
The report, disclosed by The Wall Street Journal, said that 64% of large-cap funds lagged the S&P 500 last year — the ninth straight year fund managers have fallen short.
After 10 years, 85% of large-cap funds underperformed the S&P 500, and after 15 years, nearly 92% are trailing the index.
Wirecard Issues Spread to Banks
Some banks that lent now insolvent German fintech Wirecard AG (Over-the-Counter: WCAGY) money are now having issues trying to recover the money.
Some of Europe’s largest lenders are struggling to recover even 20% of the nearly $2 billion they are owed, according to The Wall Street Journal.
Wirecard’s debt includes a $2 billion revolving credit facility. Lloyds Banking Group PLC (NYSE: LYG) is one of the 15 lenders to that facility and said it’s owed a little more than $137 million. It sold the holding at around $0.18 on the euro to distressed debt hedge funds.
British Airways Shuts Down 747 Fleet … Permanently
The largest operator of Boeing Co.’s (NYSE: BA) 747-400 passenger jet is retiring its entire fleet immediately.
According to Bloomberg, British Airways is shutting down all 31 of its jets because of the damage coronavirus has done to air travel.
The airliner used the jet — which could seat 345 passengers — to fly to destinations like Beijing, New York, San Francisco, Cape Town and Lagos. British Airways had already planned to phase out the fleet by 2024.
What We’re Reading
Don’t Worry About the Recent Blip. Tech Stocks Are Still Strong (Money & Markets)
Instacart Is Suing Uber’s Grocery Delivery Service Cornershop (CNN Business)
This Gold Mining Stock Is Gaining Steam in the Bull Run (Money & Markets)
Earnings Report
Here are the companies releasing earnings reports today:
Ally Financial Inc. (NYSE: ALLY)
BlackRock Inc. (NYSE: BLK)
Regions Financial Corp. (NYSE: RF)
State Street Corp. (NYSE: STT)
Ericsson (Nasdaq: ERIC)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.