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

The Only Thing Traders Need to Fear

Josh Selway

Jan 25, 2016 at 9:07 AM

MCD
HAL
F
TWTR
DJIA

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:

Schaeffer's contributor Adam Warner explains why the only thing we have to fear is a lack of fear.
A new strategic partnership helped this oil stock shrug off a $1 billion loss.
What pressured American Express Company (NYSE:AXP) to a three-year low.
Plus... Asian stocks get a boost, Twitter execs hit the road, and where Ford's closing its doors.

160125Futures

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

5 Things You Need to Know Today

Stocks in Asia got a lift on fresh stimulus hopes.
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.
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.
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.
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.

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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