Dow Jones Industrial Average Futures Set to Pop, Despite Durable Goods Drop

Breaking Down a $1M SPY Bet

by Kirra Fedyszyn

Published on Jan 28, 2016 at 9:17 AM

The Dow Jones Industrial Average (DJIA)​ is looking to pare some of Wednesday's losses, with futures pointed higher ahead of the bell. The index turned lower in electronic trading after a steep drop in December durable goods orders, but has since recovered, as oil futures surge. Adding to the bullish sentiment is Dow component Caterpillar Inc. (NYSE:CAT), which is set to enjoy some earnings-inspired tailwinds.


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

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Futures on the Dow Jones Industrial Average (DJIA) are 102.5 points above fair value.

5 Things You Need to Know Today

 

  1. Europe and Asia stocks reacted to dovish Fed comments.
  2. The Chicago Board Options Exchange (CBOE) saw 865,712 call contracts traded on Wednesday, compared to 613,916 put contracts. The resultant single-session equity put/call ratio rose to 0.71, while the 21-day moving average remains at 0.76. 
  3. Under Armour Inc (NYSE:UA) spiked 13.9% in pre-market trading, after announcing earnings and revenue significantly above estimates. The company, which has been slipping on the charts for months, also reported a strong sales outlook for 2016.
  4. Restructuring is underway at troubled Yahoo! Inc. (NASDAQ:YHOO), which has been feeling the pressure from investors lately. CEO Marissa Mayer reportedly now has a list of business segments the company will invest in, maintain, or kill. Significant job cuts are also expected after YHOO reports earnings next week.
  5. Chinese e-tailer Alibaba Group Holding Ltd (NYSE:BABA) is pointed 3.1% higher ahead of the bell, after announcing strong fiscal third-quarter revenue, helped by holiday sales. Option traders have been pricing in a lofty 10% post-earnings swing, and call buyers will be pleased with today's positive report.


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Earnings and Economic Data

Weekly jobless claims, durable goods orders, and pending home sales highlight the day's economic data. 

Microsoft (MSFT), Visa (V),  AMZN, Blackstone (BX), Bristol-Myers Squibb (BMY), Celgene (CELG), Electronic Arts (EA), Eli Lilly (LLY), Ford Motor (F), Harley-Davidson (HOG), JetBlue Airways (JBLU), Northrop Grumman (NOC), PulteGroup (PHM), Raytheon (RTN), Skyworks Solutions (SWKS), Sherwin-Williams (SHW), and Time Warner Cable (TWC) will all step into the earnings confessional.


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