Dow Jones Industrial Average Futures Eye Lower Start to 4Q

The Shocking Biotech Insider Trading Scandal

Josh Selway

Oct 3, 2016 at 9:12 AM

DB
TSLA
MACK
DJIA
CAB

Dow Jones Industrial Average (DJIA) futures are signaling a slightly lower start to the historically best quarter of the year, as traders await a busy morning of economic data. Specifically, Markit's purchasing managers manufacturing index (PMI) and the Institute for Supply Management's (ISM) manufacturing index are both set for release, on top of construction spending and auto sales. Investors are also keeping an eye trained on Deutsche Bank AG (USA) (NYSE:DB) and some major M&A news out of the retail sector, while anticipation for Friday's nonfarm payrolls report could play a role in stocks' performance throughout the week.

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

The insider trading scandal that shocked this biotech.
A $30 billion M&A rumor boosted this chipmaker to record highs.
How Universal Display Corporation (NASDAQ:OLED) moved on Apple Inc. (NASDAQ:AAPL) chatter.
Plus... Europe responds to "Brexit" news, Tesla's big quarter, and the retail sector's $5.5 billion M&A deal.

U.S. Stock Futures October 3

Futures on the Dow Jones Industrial Average (DJIA) are about 15 points below fair value.

5 Things You Need to Know Today

Stocks in Europe are gaining amid a weekend "Brexit" announcement.
The Chicago Board Options Exchange (CBOE) saw 990,168 call contracts traded on Friday, compared to 606,949 put contracts. The resultant single-session equity put/call ratio fell to 0.61, while the 21-day moving average sank to 0.64.
After another Autopilot crash pressured the stock on Friday, Tesla Motors Inc (NASDAQ:TSLA) is up almost 4% in electronic trading, after the company reported a 70% quarterly increase in deliveries, and confirmed its fourth-quarter deliveries outlook. The stock closed at $204.03 on Friday, 15% lower year-to-date.
Cabelas Inc (NYSE:CAB) is up 14.7% ahead of the open, on reports that fellow retailer Bass Pro Shops will buy the company for $5.5 billion -- or $65.50 per share -- in an all-cash deal. CAB shares hit a fresh annual high of $55.07 on Friday, with prior M&A buzz providing a tailwind, before closing at $54.93.
Biotech Merrimack Pharmaceuticals Inc (NASDAQ:MACK) is set to fall roughly 8% at the open, on news the company is planning a major corporate restructuring. Not only is the drugmaker's CEO resigning, effective immediately, but it plans to cut 22% of its workforce. While MACK has recovered some since its post-earnings dip back in August, the shares are off 19.6% in 2016 at $6.35.

Buzz Stocks Oct 1

Earnings and Economic Data

There are no notable earnings reports on tap. To see what else is coming up on this week's schedule, click here.

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