Dow Jones Industrial Average Futures Follow Crude Lower

The Next Big Biotech Buyout?

Dec 7, 2015 at 8:58 AM
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After Friday's huge win, futures on the Dow Jones Industrial Average (DJIA) are signaling a rocky start, as investors eye an extended sell-off in oil futures amid a day relatively light on data. Specifically, the December contract is now firmly below $40 per barrel, down 2.7% at $38.88 per barrel, after the Organization of the Petroleum Exporting Countries (OPEC) on Friday decided to lift its production ceiling. Of course, Wall Street also continues to consider the implications of a possible rate hike from the Federal Open Market Committee (FOMC), with its next meeting just over a week away. 

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

And now, on to the numbers…


Futures on the Dow Jones Industrial Average (DJIA) are 26.6 points below fair value. 

5 Things You Need to Know Today


  1. Stocks in Europe are making strong moves higher after some dovish commentary from their central bank boss.
  2. The Chicago Board Options Exchange (CBOE) saw 712,072 call contracts traded on Friday, compared to 436,353 put contracts. The resultant single-session equity put/call ratio slipped to 0.61, while the 21-day moving average came in at 0.72. 
  3. E. coli concerns continue to sting Chipotle Mexican Grill, Inc. (NYSE:CMG). Today, the shares are looking at a 8.7% dip out of the gate, after the company suggested on Friday that the health scare could significantly weigh on current-quarter numbers. Several brokerage firms have since followed Deutsche Bank's lead and lowered their price targets for the restaurant chain. 
  4. Biotech stock bluebird bio Inc (NASDAQ:BLUE) has given back 32.1% in pre-market trading, as the firm's blood disorder treatment, LentiGlobin BB305, failed to live up to expectations in its most recent trial. The stock has been a long-term underperformer, though it got a slight lift last week thanks to news of a fresh partnership
  5. Struggling coffee brewer Keurig Green Mountain Inc (NASDAQ:GMCR) will be taken private by an investor group headed by JAB Holding. The group will purchase GMCR for $92 per share in cash -- well north of GMCR's Friday close at $51.70 -- making the deal worth almost $14 billion. Hopefully some of those GMCR option bulls stuck around


Earnings and Economic Data

The week begins on a quiet note, with only a speech from St. Louis Fed President James Bullard and the Fed's consumer credit report due out. Stepping into the earnings confessional will be H&R Block (HRB) and Mattress Firm (MFRM). To see what else is on this week's agenda, click here


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