Dow Jones Industrial Average Futures Dive on Data

Time to Be Cautious on Big-Cap Volatility?

May 4, 2016 at 9:08 AM

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Dow Jones Industrial Average (DJIA) futures are sitting well below fair value following yesterday's triple-digit loss, with stocks being pressured by a rough day overseas and disappointing jobs data. Specifically, ADP's report on private-sector payrolls revealed employers added just 156,000 jobs in April, well short of the 195,000 expected -- a bad omen for Friday's closely watched nonfarm payrolls report. On the other hand, the U.S. trade deficit fell more than forecast to $40.4 billion -- its lowest level since February 2015 -- while labor productivity dropped less than expected.

Continue reading for more on today's market, including:

Schaeffer's Senior Quantitative Analyst Rocky White explains why you should exercise caution after big-cap stocks -- like Apple Inc. (NASDAQ:AAPL) -- make big moves.
How Fitbit Inc (NYSE:FIT) could spark a short squeeze.
A C-suite shake-up had option bulls swarming Valeant Pharmaceuticals Intl Inc (NYSE:VRX).
Plus... Dollar drills Asian stocks, Priceline set to plunge, and self-driving minivans.

Dow futures May 4

Futures on the Dow Jones Industrial Average (DJIA) are nearly 92 points below fair value.

5 Things You Need to Know Today

Asian stocks slumped on a strengthening greenback, while earnings and commodities are weighing on European markets.
The Chicago Board Options Exchange (CBOE) saw 635,725 call contracts traded on Tuesday, compared to 470,392 put contracts. The resultant single-session equity put/call ratio rose to 0.77, while the 21-day moving average edged up to 0.69.
Unlike February's bull gap, Priceline Group Inc (NASDAQ:PCLN) is poised to open about 10% lower following a poorly received earnings report. While the travel site's first-quarter results topped expectations, its current-quarter earnings outlook registered south of the consensus view.
Time Warner Inc (NYSE:TWX) reported a better-than-expected first-quarter profit, boosted by strength in its HBO and Turner units -- sending the entertainment stock 1.5% higher pre-market.
Fiat Chrysler Automobiles NV (NYSE:FCAU) and Alphabet Inc (NASDAQ:GOOGL) are joining forces to produce a fleet of 100 self-driving minivans -- the latest chapter in GOOGL's push for autonomous vehicles.

Buzz Stocks May 4

Earnings and Economic Data

The economic calendar is busy today. While plenty of data has already come out, factory orders, the Institute for Supply Management (ISM) non-manufacturing index, and weekly crude inventories will be released later. Minnesota Fed President Neel Kashkari will speak after the close.

As for earnings, Allstate (ALL), Anheuser-Busch Inbev (BUD), bluebird bio (BLUE), Delphi Automotive (DLPH), GoDaddy (GDDY), Humana (HUM), InterActiveCorp (IAC), InterXion (INXN), Kate Spade (KATE), Kraft Heinz (KHC), Marathon Oil (MRO), MetLife (MET), Prudential (PRU), TASER International (TASR), Tesla Motors Inc (NASDAQ:TSLA), Transocean (RIG), TripAdvisor (TRIP), Weight Watchers (WTW), Whole Foods Market (WFM), Yamana Gold (AUY), and Zynga (ZNGA) will report. To see what else is coming up on this week's schedule, click here.

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