DJIA futures suggest the index's historic streak of record highs may be in trouble
Dow Jones Industrial Average (DJIA) futures are trading below fair value this morning, pointing toward a lower open for stocks. Traders are considering a larger-than-expected increase in durable goods orders for January, fueled by a surge in orders for military goods and passenger planes, while awaiting the pending home sales index, due out later in the day. But mostly Wall Street is looking ahead to tomorrow, when President Donald Trump will give his first address to Congress, with investors searching for any clues on important policy changes, such as
tax reform and healthcare. In the meantime, the Dow will need to find a spark if it intends to extend its
historic streak of record highs.
Continue reading for more on today's market, including:
- What sent one biotech stock rallying nearly 40%?
- The Chapter 11 news that lit a fire under this energy stock.
- Analyst: The Apple Inc. (NASDAQ:AAPL) run to record highs isn't over.
- Plus, Apple rises on Buffett comments, Harley-Davidson stalls, and Chevron's big bull note.
Futures on the Dow Jones Industrial Average (DJIA) nearly 30 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 852,693 call contracts traded on Friday, compared to 615,915 put contracts. The resultant single-session equity put/call ratio rose to 0.72, while the 21-day moving average stayed at 0.65.
- Berkshire Hathaway Inc. (NYSE:BRK.A) founder and CEO Warren Buffett this morning told CNBC that his firm purchased "a lot more" AAPL since the start of the year. AAPL is edging higher in pre-market trading, and has gained considerably since Berkshire's position was revealed last May. AAPL closed Friday at $136.66, and hit a record high last week.
- Motorcycle giant Harley-Davidson Inc (NYSE:HOG) is dipping in electronic trading, due to a negative Barron's article. The financial publication cited slowing sales and a strengthening dollar as reasons the stock could struggle. HOG shares rallied in late 2016 on buyout rumors, but have since gone sideways.
- Dow stock Chevron Corporation (NYSE:CVX) could get a boost today after Jefferies set an ambitious price target of $147 -- well above the stock's Friday close of $110.12. The shares have pulled back slightly since their annual highs from last month, but remain comfortably above their rising 200-day moving average.
-
Dallas Fed President Robert Kaplan will speak today, and JinkoSolar (JKS), Novavax (NVAX), and Priceline (PCLN) are some names that will report earnings.
Overseas Trading
Stocks in Asia finished the session lower, as investors await economic reports out of the U.S., including preliminary fourth-quarter gross domestic product (GDP), due for release on Tuesday -- the same day President Trump is due to speak before Congress. A stronger yen weighed on major exporters in Japan, where financial stocks and electronics makers were among the top decliners. The Nikkei shed 0.9% for its fourth straight daily loss. China's Shanghai Composite fell 0.8%, while South Korea's Kospi slid 0.4%, and Hong Kong's Hang Seng gave back 0.2%.
In Europe, meanwhile, major indexes are mixed at midday. In the U.K., the pound dropped on reports Prime Minister Theresa May is anticipating a new referendum vote to take place in Scotland, which could choose to become independent as Brexit negotiations begin. The weaker pound sterling is serving as a boon for stocks, however, with London's FTSE last seen 0.1% higher. Elsewhere in the region, traders seem to be avoiding risk ahead of tomorrow's speech from the U.S. president, with many key policy issues still in doubt. Germany's DAX is up nearly 0.1% at last check, while France's CAC 40 has dropped 0.1%.
Stay on top of breaking stock market news with Schaeffer's Midday Market Check.