Stock futures knitted their way through a mixed premarket session Monday, as techs lagged and commodities staged a broad-based rally. Miners led among growth stocks, with Freeport McMoRan and Southern Copper notching early gains. Germany’s BioNTech soared on Q1 results. Chevron easily led the Dow Jones today, as Apple, Intel and Microsoft lagged.
Dow Jones futures ratcheted up a 0.3% advance, while S&P 500 futures managed only a fractional gain. Nasdaq 100 futures lagged 0.4% below fair value on the stock market today, as JD.COM (JD), Marriott International (MAR) and Facebook (FB) dragged at the bottom of the list.
Freeport McMoRan (FCX) led the S&P 500, climbing 2.9% as copper, iron ore and gold prices rallied. Gasoline prices also rose, due to a critical pipeline closure caused by a cyberattack, sending oil-related stocks to seven of the 10 largest premarket moves on the S&P 500 list.
Stocks to watch for Monday, according to IBD’s Investing Action Plan, include Ruth’s Hospitality (RUTH) is back above a 26.97 buy point. MarineMax (HZO) is just above a 64.09 entry. Deere (DE) has broken out from a 392.52 buy point. Thor Industries (THO) is below a 148.18 entry, and rival Winnebago (WGO) is working on an 87.63 pivot. Jefferies Financial (JEF) is nearing a 34.96 buy point but is already above a 33.68 early entry.
After the closing bell, Maravai Life Sciences (MRVI), Trex (TREX) and Virgin Galactic (SPCE) are among the companies set to report. Trex ended Friday in a buy range, above a 107.74 buy point in a cup base.
Chevron Paces Dow Jones Today
Chevron (CVX) easily led the premarket action on the Dow Jones today, rising 0.9% as gasoline prices jumped. Tech stocks impeded progress for the Dow, with Intel (INTC), Microsoft (MSFT) and Apple (APPL) hanging at the bottom of the list.
The Dow Jones returns after a week-long break from the earnings roster with Walt Disney (DIS) reporting its fiscal second-quarter results late Thursday. Analysts polled by Zacks Investment Research expect EPS to fall 55% year over year to 28 cents. They see revenue declining 10% to $16.1 billion compared to the year-ago quarter.
Earnings News: BioNTech,
BioteNTech (BNTX) scrambled 8.5% higher, after reporting first-quarter results. The Germany-based biotech also announced plans to establish a fully integrated mRNA manufacturing facility in Singapore, set to be operational in 2023. BioNTech and Pfizer (PFE) partner on BioNTEch’s Covid-19 vaccine in the U.S. and Europe. BioNTech handles the vaccine independently in Germany, China and Turkey.
BioNTech shares are extended from a rebound on Friday from its 10-week moving average. Shares are up almost 40% from an April 14 breakout.
Magic Software Enterprises (MGIC) vaulted 4% higher after reporting a solid first-quarter sales and earnings win. The Israel-based developer of business applications tools is trading below an 18.45 buy point in an 11-week cup base.
Cosmetics brand Coty (COTY) and Marriott International were among the stock moving lower on earnings Monday, down 4.3% and 1.8%, respectively.
Fuel Prices/Colonial Pipeline Shutdown
Colonial Pipeline reported it was forced by a ransomware attack to shut down its massive refined products pipeline. The conduit supplies 2.5 million barrels a day — almost half of the total gasoline, diesel and jet fuel supply — to Northeastern markets from Gulf Coast refineries.
The privately held company revealed the shutdown late Friday. It has not said when the pipeline would restart, or whether it planned to meet the ransom demands.
RBOB gasoline futures (reformulated blendstock for oxygenate blending), the price benchmark for U.S. gasoline products, have been rising since March. RBOB hit its highest mark in 33 months on Friday. Price briefly jumped above $2.21 a gallon on Monday, their highest mark since May 2018, before settling back to a 1.5% gain at around $2.15 a gallon.
Oil, Copper, Bond Yields
From a supply/demand perspective, the pipeline shutdown would technically place downward pressure on crude oil prices. But oil moved higher Monday as commodities in general rallied, with copper striking new highs and iron ore rallying 10% on China’s markets. West Texas Intermediate crude gained 0.6% to trade above $65 a barrel — below its 66.76 high from last week still well under the 33-month high of 67.98, recorded on March 8.
Copper blasted almost 3% higher to a new record above $4.87 per pound. Copper broke past its previous record, set in Feb. 2011, on Wednesday.
Action in the bond market remained tame, with the 10-year yield holding above 1.57%, roughly at its settling level from Friday, according to CBOE data. The 10-year yield is now entering its fifth day below its 50-day moving average, its longest period below that level of support since August. Yields skirted pre-pandemic levels late in March, climbing to almost 1.76% — the highest level since January 2020.
IBD50/Leaderboard: Freeport, Southern Copper
Commodities played ruled the IBD 50 list in early action. Freeport McMoRan swept ahead 3.2%, angling to extend its rally to a sixth day. The stock is up about 17% since clearing a 37.71 buy point in what IBD MarketSmith analysis plots as a double-bottom base.
Southern Copper (SCCO) popped 2.4%, also bucking for a sixth straight advance. Shares ended Friday about 8% below an 83.25 buy point in an 11-week cup base.
IBD 50 gold miner Sibanye Stillwater (SBSW) added 1.2% in premarket trade.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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