DJIA futures are below fair value, as traders eye oil and the retail sector
Dow Jones Industrial Average (DJIA) futures are signaling a disappointing finish to the week, sitting well below fair value. Global stocks are pulling back as the U.S. dollar strengthens and oil prices fall. June crude oil is down 1% at $46.23 per barrel this morning, after
three straight days of gains. Meanwhile,
retail remains in focus, after the Commerce Department reported a 1.3% jump in April retail sales -- the biggest gain in a year. However, department-store sales declined over the past 12 months, echoed by today's round of disappointing retailer earnings.
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are 65 points below fair value.
5 Things You Need to Know Today
- Japan snaps a winning streak, while China marks a fourth weekly loss.
- The Chicago Board Options Exchange (CBOE) saw 688,668 call contracts traded on Thursday, compared to 550,935 put contracts. The resultant single-session equity put/call ratio stayed flat at 0.80, while the 21-day moving average edged up to 0.74.
- Nordstrom, Inc. (NYSE:JWN) reported weak first-quarter earnings and lowered its full-year outlook, citing the need to offer larger discounts to clear inventory. The shares fell 17% in electronic trading, putting the stock on track to tap a new four-year low at the open.
- Echoing the disappointing trend among retailers, J C Penney Company Inc (NYSE:JCP) is off more than 10% ahead of the bell, after the company's sales also missed estimates, and were accompanied by lower 2016 guidance. One option bull in particular could be sweating as the shares fall today.
- On the other end of the spectrum, computing specialist NVIDIA Corporation (NASDAQ:NVDA) is on pace to open at an eight-year high, up 8% in pre-market trading. The company reported strong earnings, thanks to strength in its gaming and automotive sectors, and lifted its current-quarter sales guidance.
Earnings and Economic Data
Along with retail sales, the producer price index (PPI), business inventories, and the preliminary Thomson Reuters/University of Michigan consumer sentiment survey for May are all set for release. San Francisco Fed President John Williams will speak after today's close. To see what's coming up on next week's schedule, click here.
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