Traders are getting nervous as the news flow over the weekend focused on spikes in cases in the U.S. and China. Second wave fears are widespread, as negative comments from Chinese officials on a Beijing outbreak is creating fears of more lockdowns.
S&P Futures gapped lower last night and accelerated before the European markets opened.
S&P Futures Trading Levels
Futures currently sit at 2960, off the overnight lows of 2923. The overnight move lower was significant and it will be interesting to see if the lows can retest in the cash session.
Support levels for the day will be 2945 and 2918
Upside resistance is 2980 and 3024.
The current environment is trending lower, with aggressive selling over the last two sessions.
Three Stocks to Watch
MMM- The stock is off 2% premarket as the company gave a poor outlook on May revenues, which were down 20% year over year. The stock is well off its 2020 lows, but looks to give into market weakness today.
IRBT- The company guided Q2 revenues this morning seeing a substantial beat, now expecting $260M-270M v the $183M expected. Expense management will allow the company to return to operating profitability, but they are also seeing higher than anticipated revenue due to sales in their premium products. The stock is trading up over 7% premarket.
SHOP – Walmart will team up with Shopify to grow Walmart’s Webmarket place business. The company will bring 1.2K Shopify sellers to the site with this deal. SHOP also got an upgrade from Piper/Sandler, with an $843 price target and is up about 4% in premarket trading
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