Tokyo Rate Cut Lifts Dow Jones Industrial Average Futures

The Oil Stock Making a Monstrous Comeback

Jan 29, 2016 at 9:15 AM

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After managing a win on a roller-coaster day Thursday, the Dow Jones Industrial Average (DJIA) appears ready to extend its upside momentum, with futures pointed firmly higher on surprise easing measures from the Bank of Japan (BoJ). In addition, traders are weighing the advance fourth-quarter gross domestic product (GDP) estimate, which showed economic growth slowed to 0.7%, compared to 2% in the previous quarter. Meanwhile, crude oil is continuing its rally, with March futures last seen 1.8% higher at $33.80 a barrel.

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

How pre-earnings option traders are betting on a ceiling for Alphabet Inc (NASDAQ:GOOGL).
The oil issue that's been staging a monstrous comeback.
Chevron Corporation (NYSE:CVX) is headed lower after earnings -- and one group could cash in big.
Plus... the global rally, Carl Icahn's latest victory, and Amazon's miss.

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Futures on the Dow Jones Industrial Average (DJIA) are 87.4 points above fair value.

5 Things You Need to Know Today

Global stocks are higher after the BoJ adopted a negative interest rate.
The Chicago Board Options Exchange (CBOE) saw 871,135 call contracts traded on Thursday, compared to 543,920 put contracts. The resultant single-session equity put/call ratio fell to 0.62, while the 21-day moving average edged up to 0.77.
The latest company to restructure based on pressure from activist investor Carl Icahn, Xerox Corp (NYSE:XRX) announced it will split into two separate companies. As part of the deal, Icahn will receive three seats on XRX's board.
Amazon.com, Inc. (NASDAQ:AMZN) may be burning option bulls this morning. The stock is down 10% ahead of the bell, after quarterly earnings and revenue came in far below expectations.
Merck & Co. (MYSE:MRK) popped 2% in pre-market trading, after the Food and Drug Administration (FDA) approved its new hepatitis C treatment. The drugmaker, which has reportedly been mulling a purchase of a struggling peer, is slated to announce quarterly earnings next Wednesday.

Earnings and Economic Data

Along with the GDP estimate, the employment cost index (ECI), Chicago purchasing managers index (PMI), and consumer sentiment will also be released.

AbbVie (ABBV), American Airlines (AAL), Colgate-Palmolive (CL), Honeywell (HON), MasterCard (MA), Newell Rubbermaid (NWL), Phillips 66 (PSX), Seagate Technology (STX), Sony (SNE), Tyco (TYC), and Whirlpool (WHR) will conclude the week's earnings reports. To see what's on next week's agenda, click here.

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