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Dow Jones Industrial Average Futures Slip; Oil Pops

Why Analysts Are Running From This Biotech

Mar 7, 2016 at 9:08 AM
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After closing atop 17,000 on Friday, the Dow Jones Industrial Average (DJIA) could struggle to maintain that key level, with futures indicating a lower open. While there's little on the docket aside from an afternoon speech by Fed Vice Chair Stanley Fischer, traders are still mulling Friday's largely upbeat jobs report. Also, oil remains in view, with April-dated crude futures last seen 1.3% higher at $36.37 per barrel, as Organization of the Petroleum Exporting Countries (OPEC) producers are reportedly eyeing a price equilibrium around $50 a barrel. In stock news, Dow component DuPont (NYSE:DD) is pointed higher on chatter of a possible takeover bid from BASF.

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

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Futures on the Dow Jones Industrial Average (DJIA) are nearly 60 points below fair value.

5 Things You Need to Know Today

 

  1. Stocks are selling off across the pond, as traders exercise caution ahead of Thursday's European Central Bank (ECB) policy meeting.
  2. The Chicago Board Options Exchange (CBOE) saw 1.2 million call contracts traded on Friday, compared to 693,598 put contracts. The resultant single-session equity put/call ratio rose to 0.59, while the 21-day moving average edged down to 0.73.  
  3. Apple Inc. (NASDAQ:AAPL) Mac computers were reportedly hit with their first-ever ransomware hacking campaign over the weekend, according to Palo Alto Networks Inc (NYSE:PANW) researchers. This may have prompted Pacific Crest to cut its price target on AAPL to $127 from $132, and more negative attention remains a possibility. However, the shares are unaffected ahead of the open, up 0.1% after settling at $103.01 on Friday.
  4. Alibaba Group Holding Ltd's (NYSE:BABA) main financial affiliate has taken a controlling stake in AGTech Holdings Ltd., returning the e-tailer to the Chinese lottery market after it previously suspended operations. This follows last week's reports that BABA was considering a stake in Caixin Media. The stock is down 0.4% pre-market after landing at $72.22 on Friday.
  5. Former Chesapeake Energy Corporation (NYSE:CHK) CEO Aubrey McClendon, who died in a car accident last week, was honored over the weekend in Oklahoma City. Meanwhile, the stock has been on a tear recently, and is up another 1.8% pre-market after settling Friday at $5.08.

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Earnings and Economic Data

The only notable event on the economic docket today is Fed Vice Chairman Stanley Fischer's speech to the National Association for Business Economics (NABE), slated for 2:30 p.m. ET. Shake Shack (SHAK), United Natural Foods (UNFI), and Urban Outfitters (URBN) will report earnings. To see what else is on this week's agenda, click here.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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