Dow futures down 300 points, reopening plays drop

Bank of America Securities clients sold $3.2 billion in U.S. equities last week while the S&P 500 gained nearly 5%. The clients bought ETFs and sold single stocks for the fifth straight week. “Selling was broad-based across client groups, where hedge funds and retail clients have been sellers for the last eight and five consecutive weeks, respectively,” Bank of America equity and quant strategist Jill Carey Hall said in a note. “Financials led the outflows last week with its second-largest selling in our data history since 2008 — consistent with the record low investor positioning.” — Fitzgerald 

The Federal Open Market Committee begins its two-day meeting Tuesday with markets watching for news on several fronts. The Fed’s policymaking body is unlikely to make any major policy changes, with its benchmark rate near zero and the asset purchasing programs continuing. However, investors will be watching for thoughts on possibly implementing yield caps and strengthening forward guidance on how long the Fed will keep current policies in place. The meeting concludes Wednesday with the release of a policy statement and the quarterly summary of economic projections, then Chairman Jerome Powell’s news conference. – Cox

Shares of retailer Macy’s soared more than 11% in premarket trading after the company reported better-than-expected preliminary earnings. The department store reported a loss of $2.03 per share, while Wall Street analysts were expecting a loss of $2.34 per share, according to Refinitiv. Revenue also beat estimates coming in at $3.02 billion. Analysts forecast $3.01 billion. Shares of the retailer are down about 43% in 2020. — Fitzgerald 

Investors shifted away from stocks that are expected to benefit from the economy reopening on Tuesday. Airlines and cruise lines have been on a tear as market participants bet on a return in travel demand; however, the equities fell in premarket trading on Tuesday. American Airlines fell 7% before the bell. Delta Air Lines and Alaska Air Group both dropped more than 4%. United Airlines and Southwest both fell about 3.9%. 

Cruise operators also ticked lower in premarket trading on Tuesday. Carnival Corp. and Royal Caribbean fell more than 4% and Norwegian Cruise Lines dropped about 3.8%. —Fitzgerald 

U.S. equity futures fell on Tuesday as investors pulled back on riskier assets after a major comeback for stocks from the coronavirus market rout. The Dow Jones Industrial Average futures fell 320 points and the S&P 500 futures fell about 26 points. Nasdaq Composite futures indicated a drop of 41 points at the open. Reopening plays — airlines, cruise lines and retailers — ticked lower in premarket…