Dow Jones Industrial Average Eyes Solid Start to May

Sell in May and Go Away? Maybe Not.

by Alex Eppstein

Published on May 2, 2016 at 9:08 AM
Updated on May 2, 2016 at 9:27 AM

Dow Jones Industrial Average ​​(DJIA) 
futures are above fair value ahead of the open, as traders prepare for a busy week of earnings and data -- culminating in Friday's crucial nonfarm payrolls report. This is a welcome sight for investors, who watched stocks stumble at the end of April. In focus today will be the Institute for Supply Management (ISM) manufacturing index, due out at 10 a.m. ET, and oil prices -- with June-dated crude futures last seen 0.2% lower at $45.83 per barrel, but still a stone's throw away from their 2016 highs.
Continue reading for more on today's market, including:

Dow Futures May 2

Futures on the Dow Jones Industrial Average (DJIA) are more than 32 points above fair value.

5 Things You Need to Know Today

  1. Japan's Nikkei collapsed under the weighed of a surging yen, while European automakers are driving higher.
  2. The Chicago Board Options Exchange (CBOE) saw 954,673 call contracts traded on Friday, compared to 817,026 put contracts. The resultant single-session equity put/call ratio jumped to 0.86, while the 21-day moving average edged up to 0.68.
  3. Amid strong resistance from regulators at home and abroad, Halliburton Company (NYSE:HAL) and Baker Hughes Incorporated (NYSE:BHI) decided to terminate their $28 billion merger -- confirming previous speculation. Following the news, BHI announced a $1.5 billion stock buyback plan.
  4. Facebook Inc's (NASDAQ:FB) plan to change its share structure by issuing new Class C stock is coming under fire, as one shareholder has filed a proposed class action lawsuit -- alleging the move will give CEO Mark Zuckerberg too much power.
  5. Apollo Education Group Inc (NASDAQ:APOL) is set to soar 12% out of the gate, after private equity firm Apollo Global Management LLC (NYSE:APO) upped its buyout bid to $10.50 per share from $10.

Buzz Stocks May 2

Earnings and Economic Data

Today, the Markit purchasing managers manufacturing index (PMI) and construction spending numbers will be released. Plus, Atlanta Fed President Dennis Lockhart and San Francisco Fed President John Williams will speak. As for earnings, Cabot (CBT), Community Health (CYH), Denny's (DENN), Loews (L), and Sysco (SYY) will report. To see what else is coming up on this week's schedule, click here

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