Dow Jones Industrial Average Futures Surge on PBOC, Microsoft

China News Sends Dow Futures Soaring; Plus, One Biotech's Wild Ride

by Josh Selway

Published on Oct 23, 2015 at 9:01 AM
Updated on Oct 23, 2015 at 9:03 AM

The Dow Jones Industrial Average (DJIA) could be on the verge of its second straight triple-digit triumph, thanks to an overseas rally and another strong round of big-cap earnings. Stocks in Europe shot higher after a big announcement from the People's Bank of China (PBOC), which comes on the heels of Thursday's dovish comments from European Central Bank (ECB) President Mario Draghi. Back at home, tech giants Alphabet Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN), along with Dow component Microsoft Corporation (NASDAQ:MSFT), are all surging following blowout quarterly results. With the Dow already 1.6% higher on the week as of Thursday's close, it appears the blue-chip index is well on its way for a fourth straight weekly win. 

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


And now, on to the numbers…

151023Futures

Futures on the Dow Jones Industrial Average (DJIA) are nearly 171 points above fair value. 


 5 Things You Need to Know Today

 

  1. Global stocks are soaring, thanks in no small part to the PBOC's latest move to accommodate markets.
  2. The Chicago Board Options Exchange (CBOE) saw 819,713 call contracts traded on Thursday, compared to 541,564 put contracts. The resultant single-session equity put/call ratio slid to 0.66, while the 21-day moving average edged down to 0.74. 
  3. GOOGL is set to make a bigger post-earnings move than the Street expected, as the shares are pointed 10.4% higher after the firm beat expectations with its third-quarter numbers. What's more, the company announced a $5.1 billion share buyback plan, the first in its 11-year history as a publicly traded stock. 
  4. On the other hand, music provider Pandora Media Inc (NYSE:P) has been shattered in electronic trading. The shares are set to open 30.4% lower, after the company announced disappointing quarterly numbers and a $90 million royalties settlement. This truly makes October a month to forget for P -- a stock that had actually been outperforming for most of the year
  5. Tesla Motors Inc (NASDAQ:TSLA) is set to open higher, after CEO Elon Musk announced the electric car maker could begin producing cars in China within two years. The news could help pare losses after what's been a tough week for the "Musk portfolio."


151023OV_Buzz2


Earnings and Economic Data

 

The sole economic report for today is Markit's flash purchasing managers manufacturing index (PMI). Companies stepping into the earnings confessional include Dow conglomerate PG, American Airlines Group (AAL), Cabot Oil & Gas (COG), Lear (LEA), Tenneco (TEN), and V.F. Corp (VFC). To see what's on next week's docket, click here


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