Wal-Mart, Home Depot Lift Dow Jones Industrial Average Futures

2 Major Risks to the Bullish Case

by Josh Selway

Published on Nov 17, 2015 at 8:59 AM

The Dow Jones Industrial Average (DJIA) is looking to build off of Monday's triple-digit win, with futures comfortably higher following a strong round of blue chip earnings. Both Wal-Mart Stores, Inc. (NYSE:WMT) and Home Depot Inc (NYSE:HD) posted impressive quarterly numbers -- an encouraging sign after retail's dismal performance last week, although a few smaller retail names are plummeting today post-earnings. Elsewhere, oil futures are cooling off after Monday's surge, though energy stocks in Europe continue to rise. 

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

And now, on to the numbers…


151117Futures

Futures on the Dow Jones Industrial Average (DJIA) are roughly 59 points above fair value. 

 5 Things You Need to Know Today

 

  1. Airline stocks rebounded across Asia, while energy names are leading the charge in Europe. 
  2. The Chicago Board Options Exchange (CBOE) saw 726,547 call contracts traded on Monday, compared to 514,674 put contracts. The resultant single-session equity put/call ratio fell to 0.71, while the 21-day moving average stayed at 0.70. 
  3. WMT and HD are booming ahead of the open following promising earnings reports, posting pre-market gains of 2.4% and 3.3%. For Home Depot, this move is roughly in line with what the options market was expecting. As such, HD could make a push toward another all-time high, extending its impressive year-to-date lead
  4. It's not all sunshine and rainbows for retailers, though. Urban Outfitters, Inc. (NASDAQ:URBN) is set to open 13.4% lower after the company posted disappointing quarterly results. Still, a negative post-earnings reaction from the Street isn't anything new for URBN.
  5. Online payment service Paypal Holdings Inc (NASDAQ:PYPL) has been struggling on the charts since last month's mixed earnings report. Luckily for shareholders, there's Carl Icahn. The activist investor swapped his stake in eBay Inc (NASDAQ:EBAY) with shares of PYPL. As a result, PYPL is set to open 1.1% higher. 

151117OV_Buzz

Earnings and Economic Data

 

The consumer price index (CPI), industrial production and capacity utilization, and the National Association of Home Builders (NAHB) housing market index will all be released today. Fed Governor Jerome Powell will also speak.

JA Solar (JASO), Jack in the Box (JACK), La-Z-Boy (LZB), and TJX Companies (TJX) will all report earnings. Meanwhile, Electronic Arts (EA) is slated to release its highly anticipated Star Wars game. To see what else is coming up on this week's schedule, click here


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