Dow Jones Industrial Average Futures Surge on Payrolls Beat

Could the S&P's Brutal Week Lead to a Bullish January?

by Alex Eppstein

Published on Jan 8, 2016 at 9:05 AM

After yesterday's dive into correction territory, Dow Jones Industrial Average (DJIA)​ futures are pointed sharply higher after a rebound in Chinese stocks and an upbeat nonfarm payrolls report. Specifically, 292,000 jobs were added last month, topping estimates, while the unemployment rate held at 5%. Meanwhile, traders will keep a close watch as San Francisco Fed President John Williams and Richmond Fed President Jeffrey Lacker take the mic around midday to address the economic outlook. Elsewhere, crude oil is fighting its way higher from Thursday's 12-year low, with February-dated futures last seen up 1.8% at $33.86 per barrel.

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


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Futures on the Dow Jones Industrial Average (DJIA) are nearly 227 points above fair value.

5 Things You Need to Know Today

 

  1. Chinese markets rebounded following a huge sell-off, calming investor fears globally.
  2. The Chicago Board Options Exchange (CBOE) saw 936,704 call contracts traded on Thursday, compared to 832,730 put contracts. The resultant single-session equity put/call ratio jumped to 0.89, while the 21-day moving average held steady at 0.71. 
  3. Family Dollar CEO Howard Levine is resigning, after helping the company integrate with Dollar Tree, Inc. (NASDAQ:DLTR) following last July's acquisition. Also this morning, DLTR received a price-target hike to $92 from $88 at UBS.
  4. European regulators have approved FedEx Corporation's (NYSE:FDX) purchase of Dutch rival TNT Express. As a result, FDX shares are 2% higher ahead of the bell.
  5. A day after bucking the broad-market downturn, Gap Inc (NYSE:GPS) is bracing for a 7% drop this morning after the retailer reported a bigger-than-expected decline in December same-store sales. Adding insult to injury, Wedbush trimmed its price target on GPS to $25 from $27.


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Earnings and Economic Data

The week ends with data on wholesale inventories and consumer credit. San Francisco Fed President John Williams and Richmond Fed President Jeffrey Lacker will speak, and Acuity Brands (AYI) will unveil its quarterly report. To see what's coming up on next week's agenda, click here.


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