Dow Jones Industrial Average Futures Slide With Oil; McDonald's Set to Pop

The Only Thing Traders Need to Fear

by Josh Selway

Published on Jan 25, 2016 at 9:07 AM
Updated on Jun 24, 2020 at 10:16 AM

Coming off its best week of 2016, the Dow Jones Industrial Average (DJIA)​ is set to backpedal, with Dow futures trading below fair value. Earnings will again be in focus -- headlined by blue chip McDonald's Corporation (NSYE:MCD), which is surging ahead of the open after strong results. However, homebuilder D.R. Horton, Inc. (NYSE:DHI) is looking at a drop following its quarterly report, while a big-name oil services stock is also pointed lower after earnings. Elsewhere, traders are gearing up for this week's Federal Open Market Committee (FOMC) meeting, and are keeping a close eye on oil, as March-dated crude futures fall 3.1% to $31.20 per barrel. 


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


160125Futures

Futures on the Dow Jones Industrial Average (DJIA) are 60.5 points below fair value.

5 Things You Need to Know Today

 

  1. Stocks in Asia got a lift on fresh stimulus hopes
  2. The Chicago Board Options Exchange (CBOE) saw 845,652 call contracts traded on Friday, compared to 542,233 put contracts. The resultant single-session equity put/call ratio edged down to 0.64, while the 21-day moving average moved down to 0.75. 
  3. Twitter Inc (NYSE:TWTR) is bracing for a 4.5% drop when the market opens. The stock is hurting on news that four top executives are leaving the company, according to a tweet from CEO Jack Dorsey -- and additional headwinds are possible on the sentiment front.
  4. Oil-and-gas issue Halliburton Company (NYSE:HAL) is poised to open 2.2% lower, following the company's fourth-quarter earnings release. While earnings topped analysts' forecasts, revenue came in lower than expected. Ahead of the report, volatility expectations for HAL were unusually high.
  5. Despite posting record-breaking numbers in the U.S. and China in 2015, Ford Motor Company (NYSE:F) is going a different direction in Japan. The automaker is shuttering operations in both Japan and Indonesia, where it's struggled recently. Shares of F are up 0.4% ahead of the open. 


160125OV_Buzz

Earnings and Economic Data

The lone economic report of note today is the Dallas Fed's manufacturing index. To see what else is on this week's agenda, click here.


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