Dow Jones Industrial Average Futures Eye 225-Point Surge

How One Drugmaker Lost Half Its Value

by Andrea Kramer

Published on Jan 19, 2016 at 9:06 AM

Dow Jones Industrial Average (DJIA)​ futures are indicating a triple-digit gain out of the gate -- and should climb back atop the key 16,000 level -- as traders cheer GDP data from China. In addition, Bank of America Corp (NYSE:BAC) is headed higher after reporting earnings, while Dow component Johnson & Johnson (NYSE:JNJ) is up in electronic trading after announcing job cuts.


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


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Futures on the Dow Jones Industrial Average (DJIA) are about 225 points above fair value.

5 Things You Need to Know Today

 

  1. Solid gross domestic product (GDP) data from China is lifting global stocks.
  2. The Chicago Board Options Exchange (CBOE) saw 977,462 call contracts traded on Friday, compared to 1.1 million put contracts. The resultant single-session equity put/call ratio jumped to 1.14, while the 21-day moving average rose to 0.77. 
  3. Shares of BAC are up 2% ahead of the bell, after the banking giant said its fourth-quarter earnings of 28 cents per share beat analysts' estimates, even as its $19.53 billion in sales fell short of the consensus forecast. Ahead of the event, the options market was banking on a much bigger post-earnings move from BAC.
  4. Yahoo! Inc. (NASDAQ:YHOO) is eyeing a 2.3% gain in pre-market trading, after Barron's over the weekend said the company could net a 35% profit on the sale of several of its core assets, including its stakes in Yahoo! Japan and Alibaba Group Holding Ltd (NYSE:BABA). Activist investors have been putting pressure on YHOO in recent weeks to make big changes.
  5. In the latest biotech news, Acorda Therapeutics Inc (NASDAQ:ACOR) has made a tender offer to purchase Finland-based Biotie Therapies Oyj (ADR) (NASDAQ:BITI) for roughly $363 million, in order to secure BITI's Parkinson's disease drugs. ACOR is up 0.3% ahead of the bell, while BITI is set to soar 89%.


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Earnings and Economic Data

Traders return from the long weekend with the National Association of Home Builders (NAHB) housing market index, as well as Treasury International Capital (TIC) data. 

On the earnings front, International Business Machines (IBM), UnitedHealth Group (UNH), Netflix (NFLX)Advanced Micro Devices (AMD), Charles Schwab (SCHW), Cree (CREE), and Delta Air Lines (DAL) are all slated to report. To see what else is coming up on this week's agenda, click here​.


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