Dow Jones Industrial Average Futures Take Off as Crude Surges

2 Breakout Oil Stocks; Plus, Uber Drives GrubHub Lower

Jan 22, 2016 at 8:56 AM
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The Dow Jones Industrial Average (DJIA)​ is looking at another potential triple-digit win to end the week -- and a test of the 16,000 level -- with futures pointed sharply higher amid a big bounce in crude. Specifically, March-dated oil jumped as much as 7%, and was last seen 5.2% higher at $31.06 per barrel, as investors bank on wintry conditions buoying demand. Meanwhile, traders are digesting a global stock market rally and earnings from Dow components American Express Company (NYSE:AXP) and General Electric Company (NYSE:GE), while looking forward to the release of manufacturing and existing home sales data later this morning.


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


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Futures on the Dow Jones Industrial Average (DJIA) are more than 197 points above fair value.

5 Things You Need to Know Today

 

  1. Stocks around the world are on fire, fueled by crude's comeback and rising stimulus expectations.
  2. The Chicago Board Options Exchange (CBOE) saw 742,255 call contracts traded on Thursday, compared to 515,502 put contracts. The resultant single-session equity put/call ratio jumped to 0.69, while the 21-day moving average held at 0.76. 
  3. GE is pointed 1.3% lower pre-market, after the Dow component topped earnings estimates, but fell short on the revenue front. This is welcome news for option traders, who have been buying to open puts over calls at a breakneck speed in recent months.
  4. Starbucks Corporation (NASDAQ:SBUX) is also struggling ahead of the bell, down 2% on weaker-than-forecast current-quarter guidance -- though the swing is roughly in-line with what the options market was pricing in. At the same time, the coffee chain's per-share earnings and sales for the fiscal first quarter squeaked past the Street's consensus view.
  5. AXP has given up nearly 6% in electronic trading, as the credit card giant's earnings beat is being overshadowed by a poorly received full-year earnings forecast. Already, no fewer than 11 analysts have cut their price targets on AXP -- including KBW, which also downgraded the stock's rating to "market perform" from "outperform." As such, the shares are poised to open at a new two-year low.


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Earnings and Economic Data

Markit's flash purchasing managers' manufacturing index (PMI) and existing home sales will close out the week's economic calendar. Legg Mason (LM) and SunTrust Banks (STI) will tell all in the earnings confessional. To see what's coming up on next week's agenda, click here.

 

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