Dow futures rally 200 points, volatile week, Lowe’s jumps

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Charging Bull Statue is seen at the Financial District in New York City, United States on March 29, 2020.

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8:06 am:Market’s ‘bullish structure’ still intact after Tuesday’s late drop, technical analyst says

Mark Newton, managing member at Newton Advisors, told clients that further market gains are still likely even after a sudden drop late Tuesday. “The late day weakness did nothing to take away from the bullish structure that resulted from Monday’s breakout,” Newton said. “We look to be at a juncture where the worst performing laggards of this year have begun a sharp counter-trend rally and can play catchup. I expect this to last into late week/early next.” Newton added that, unless the S&P 500 breaks down to 2,860, “this dip should be buyable for a push to 3020-30.” The S&P 500 closed at 2,922.94 on Tuesday. —Imbert

8:04 am: Wednesday marks the first auction of 20-year Treasury bonds since 1986

The Treasury is bringing back 20-year bonds, last issued in 1986, in a bid to extend the length of time it has to pay off its record level of borrowing to support the economy through the coronavirus pandemic. A $20 billion auction will be held at 1 p.m. ET on Wednesday. Analysts expect the new issue to be met with good demand as the 20-year note is particularly appealing to foreign investors, pension funds and insurers, who look for longer duration holdings to match their liabilities. –Li, Domm

8:02 am: Meeting minutes will provide detailed look into Fed thinking

Investors will learn more about the mindset of the Federal Reserve when minutes are released from the central bank’s last meeting. The Federal Open Market Committee held its benchmark borrowing rate near zero following a meeting that ended April 29. In addition, the FOMC pledged to keep policy steady “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.” Markets had been looking for a bit firmer of a commitment to when the Fed would consider tightening policy again. The meeting summary will come out at 2 p.m. ET. –Cox

7:49 am: Target says online sales doubled year-over-year during the first quarter

Shares of Target gained about 1% during Wednesday’s premarket trading after the company’s first quarter earnings results showed that digital sales jumped 141% year-over-year. Overall, Target’s same-store sales grew by 10.8% as people shopped at the big box retailer amid the pandemic. But sales of higher-margin items, such as apparel, dropped, hitting the company’s bottom line. For the quarter the big-box retailer earned 56 cents per share, down from $1.53 a year earlier, while revenue rose 11.3% to $19.62 billion. CEO Brian Cornell said that coronavirus-related expenses, such as higher wages, has risen to about $500 million.  —Stevens

7:23 am: Lowe’s stock pops 5% after it reports surge in first-quarter sales

Shares of home improvement retailer Lowe’s jumped more than 5% in premarket trading after the company said its first-quarter same-store sales surged 11.2% even amid the Covid-19 outbreak. For the company’s first quarter, ended May 1, Lowe’s reported net income rose to $1.34 billion compared to earnings of $1.05 billion one year ago. CEO Marvin Ellison said he was pleased with strong online demand, with Lowes.com sales increasing 80% during the quarter. —Franck

7:21 am: Stock futures rally as Wall Street braces for even more volatility

U.S. stock futures were sharply higher on Wednesday morning as the market’s volatility this week keeps investors on their toes. Dow Jones Industrial Average futures were up 253 points, or 1.1%. S&P 500 and Nasdaq 100 futures both gained 1%. Wednesday’s move up comes after a sharp decline in the previous session that snapped a three-day winning streak. Sentiment was lifted Wednesday in part by strong earnings from Lowe’s. —Imbert 

—With reporting from Jeff Cox, Yun Li and Patti Domm. 

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