Dow Jones Industrial Average Futures Signal New Highs

Is It Time to Buy Calls on These 25 Stocks?

by Josh Selway

Published on Mar 30, 2016 at 9:06 AM
Updated on Jun 24, 2020 at 10:16 AM

Dow Jones Industrial Average (DJIA) futures are pointing to a positive start, as stocks continue to react to Fed Chair Janet Yellen's dovish comments from Tuesday. Oil prices are also on the rise, with May-dated crude futures picking up 2% at $39.05 per barrel, ahead of the Energy Information Administration's (EIA) domestic inventories update. Also on the data front, ADP's private sector job report for March -- often seen as a precursor to the Labor Department's nonfarm payrolls report -- was roughly in line with estimates, showing 200,000 new jobs. Against this backdrop, Dow futures are more than 100 points above fair value, with the Dow taking aim at fresh year-to-date highs. 

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

  • Is it time to buy calls on these 25 stocks? Schaeffer's Senior Quantitative Analyst Rocky White investigates. 
  • Why ACADIA Pharmaceuticals Inc.'s (NASDAQ:ACAD) monumental drug victory isn't good news for everyone. 
  • The "best-case scenario" for Chipotle Mexican Grill, Inc. (NYSE:CMG).
  • Plus... Global markets rally, the Dow component cutting jobs, and a bullish note on Apple. 

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Futures on the Dow Jones Industrial Average (DJIA) are almost 104 points above fair value. 

5 Things You Need to Know Today

 

  1. China is leading a global stock rally following Yellen's speech, although one region is missing out
  2. The Chicago Board Options Exchange (CBOE) saw 698,255 call contracts traded on Tuesday, compared to 423,600 put contracts. The resultant single-session equity put/call ratio slid to 0.61, while the 21-day moving average moved down to 0.69.  
  3. Yoga apparel retailer Lululemon Athletica inc. (NASDAQ:LULU) is up almost 6% in electronic trading after reporting better-than-expected fourth-quarter profit. The expected price action would make this LULU's first post-earnings win in three quarters, which isn't something option bears were expecting
  4. Dow component Boeing Co (NYSE:BA) has announced it will be cutting more than 4,000 jobs over the next few months. The shares have underperformed in 2016, dropping 9.5% to trade at $130.88, and hit a two-year low just last month. 
  5. As expected, a judge has vacated the government's request for Apple Inc. (NASDAQ:AAPL) to unlock the iPhone of one of the San Bernardino shooters. Separately, the firm signed a deal with the MLB to equip each coaching staff with iPad Pros, while the stock was upgraded at Cowen and Company to "outperform." The brokerage also upped its price target to $135 -- just above AAPL's all-time high of $134.54 from last April. 


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Earnings and Economic Data

Chicago Fed President Charles Evans is scheduled to speak today. Reporting earnings are Micron Technology (MU) and Paychex (PAYX). To see what else is coming up on this week's agenda, click here.


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