Dow Jones Industrial Average Futures Signal Strong Start to 3Q

Dow Jones Industrial Average (DJIA) futures are trading above fair value ahead of the first day of the third quarter. Trading volume may be muted with the market set to close early ahead of the Fourth of July holiday, but there will still be plenty of economic data to keep stock traders busy. Specifically, construction spending and auto sales reports are due, along with the ISM manufacturing index. Oil prices are signaling an eighth straight win, too, with August-dated crude futures up 0.7% at $46.37 per barrel. As for individual equities, Tesla stock will stay in focus thanks to news the company's Model 3 received regulatory approval, while Disney is also buzzing amid reports Verizon is considering buying the company. 

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

• 5 ETFs to watch heading into the 3Q.
• The benefits of trading weekly options.
• One options trader bet on a 10% biotech surge by Christmas.
• Plus, BABA's big price target; homebuilders stay hot; and Bristol-Myers stock pushes higher.

5 Things You Need to Know Today
  

1. The Chicago Board Options Exchange (CBOE) saw 785,145 call contracts traded on Friday, compared to 525,699 put contracts. The single-session equity put/call dipped to 0.67, and the 21-day moving average remained at 0.63.
2. Chinese e-commerce stock Alibaba Group Holding Ltd (NYSE:BABA) is in analysts' bullish crosshairs once again, with Deutsche Bank boosting its price target to $201 from $158 -- a nearly 43% premium to last Friday's close at $140.90. BABA stock hit a record high of $148.29 on June 9, and is up 60.5% year-to-date. 
3. Another stock making a notable pre-market move is homebuilder PulteGroup, Inc. (NYSE:PHM), which is pointed almost 3% higher ahead of the open. It's not clear what's driving this price action, but PHM -- like its sector peer KB Home -- has been outperforming all year, up 33.5% in 2017. In fact, if today's projected move plays out, it will put PulteGroup at a fresh 10-year high. 
4. Bristol-Myers Squibb Co (NYSE:BMY) is also ready to open higher, last seen up 1.6% in electronic trading, thanks to a positive mention in financial magazine Barron's. BMY stock has been bouncing between $52 and $58 since mid-February, but recently took back its 200-day moving average for the first time in almost a year. 
5. The earnings calendar is bare as the NYSE and Nasdaq prepare for an early 1 p.m. ET close. U.S. markets will be closed tomorrow for the Fourth of July holiday.

Overseas Trading

Asian markets closed higher today, following a round of regional economic data. In China, the Shanghai Composite edged up 0.07%, after the Caixin manufacturing purchasing managers index (PMI) hit a three-month high in June. Hong Kong's Hang Seng followed suit, adding 0.08% as the China-Hong Kong bond-trading link opened. Elsewhere, Japan's Nikkei added 0.1%, after the Bank of Japan's Tankan survey showed confidence among large manufacturers rose to a three-year high in the second quarter. Rounding things out, South Korea's Kospi settled up 0.1%.

Stocks in Europe are trading in positive territory at midday as bank and oil shares rise. A six-year high for IHS Markit's eurozone PMI is also fueling the risk-on backdrop. At last check, the French CAC 40 was trading up 1%, the German DAX has jumped 0.6%, and London's FTSE 100 was flirting with a 0.4% lead.