Dow Jones Industrial Average Futures Shaky Ahead of Fed Week

Dow Jones Industrial Average (DJIA) futures are below fair value this morning, as U.S. stocks look set to cool after notching year-to-date highs. Ahead of the Organization of the Petroleum Exporting Countries' (OPEC) monthly report, April-dated crude futures are down 2.5% at $37.54 per barrel, after Iran said it wouldn't agree to an output freeze until it met its daily production targets. Meanwhile, traders are looking ahead to the Federal Open Market Committee's (FOMC) two-day policy meeting, which kicks off tomorrow -- though the Fed is widely expected to hold interest rates at current levels.  

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

• What the Dow's defeat of its 200-day moving average could mean for stocks.
• The software stock putting bears on notice.
• The bullish outlook that helped boost Anadarko Petroleum Corporation (NYSE:APC) and several of its sector peers.
• Plus... A looming policy decision in Japan, a slew of M&A developments, and the bullish Tesla hype. 

Futures on the Dow Jones Industrial Average (DJIA) are 49.3 points below fair value. 

5 Things You Need to Know Today

 

1. Stocks in Asia rallied ahead of a Bank of Japan (BOJ) decision, while mining stocks are leading the way in Europe. 
2. The Chicago Board Options Exchange (CBOE) saw 811.985 call contracts traded on Friday, compared to 483,356 put contracts. The resultant single-session equity put/call ratio dropped to 0.60, while the 21-day moving average edged down to 0.70.  
3. Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) is on pace to add 8% when the market opens, thanks to an unsolicited takeover offer from a group of companies led by Chinese insurer Anbang. Interestingly, Anbang has also worked a $6.5 billion deal with Blackstone Group LP (NYSE:BX) to buy the company's Strategic Hotels & Resorts Inc. unit. The HOT deal is more complicated, though, since the company is already being bought by another American firm. 
4. In other -- and less convoluted -- M&A news, The Fresh Market Inc (NASDAQ:TFM) agreed to be purchased by Apollo Global Management LLC (NYSE:APO) for $1.36 billion in cash -- or $28.50 per share. TFM closed Friday at $22.98. The news dispels rumors that another grocery giant would take over TFM. 
5. Tesla Motors Inc (NASDAQ:TSLA) looks poised to extend its recent momentum, after Baird upgraded the stock to "outperform" and boosted its price target to $300 from $230. This price marks a 44.6% premium to TSLA's settlement of $207.50 from Friday, and represents all-time-high territory for the stock. 

Earnings and Economic Data

There are no notable economic reports due out on today. Fuel Tech (FTEK), MannKind (MKND), Rosetta Stone (RST), and Solazyme (SZYM) will release their quarterly earnings reports. To see what is else on this week's agenda, click here.