Dow Jones Industrial Average Futures Signal Sharp Drop

A Compelling Case for Gold Bugs

May 3, 2016 at 9:08 AM
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Dow Jones Industrial Average ​​(DJIA) futures are signaling a sharp drop at the open, pressured by weak manufacturing data out of China. While Dow futures are more than 100 points below fair value, blue-chip stock Pfizer Inc. (NYSE:PFE) is 2.8% higher pre-market, after the company reported better-than-expected earnings and sales, and boosted its full-year guidance. Another drop in oil prices could also apply pressure to stocks today, with June-dated crude futures last seen 1.2% lower at $44.24 per barrel amid increased output from exporters Saudi Arabia and Iran.

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

Dow futures May 3

Futures on the Dow Jones Industrial Average (DJIA) are roughly 129 points below fair value.

5 Things You Need to Know Today
 

  1. Stocks in China shrugged off downbeat manufacturing data, potentially boosted by cryptic comments from President Xi Jinping.
  2. The Chicago Board Options Exchange (CBOE) saw 635,725 call contracts traded on Monday, compared to 470,392 put contracts. The resultant single-session equity put/call ratio fell to 0.74, while the 21-day moving average held steady at 0.68.
  3. While Carl Icahn recently expressed concerns over Apple Inc.'s (NASDAQ:AAPL) prospects in China, CEO Tim Cook said he "could not be more optimistic about China," citing a growing middle class as a potential catalyst for sales. That said, AAPL has suffered eight straight days of losses, and hasn't had a nine-day streak since June 1991.
  4. Yelp Inc (NYSE:YELP) is set to surge 4.7% at the open, after Greenlight Capital's David Einhorn disclosed a stake in the business review website, saying it could double its revenue by 2019. Einhorn also said his hedge fund has exited positions in Greek banks and financial services company Delta Lloyd -- not unlike what he recently did with Sunedison Inc (SUNE).
  5. CVS Health Corp (NYSE:CVS) reported better-than-expected quarterly earnings and sales, boosted by rising demand for its pharmacy benefit management services. The pharmacy chain also offered up an upbeat profit forecast.


Buzz Stocks May 3

Earnings and Economic Data

April auto sales data will be released today, while Cleveland Fed President Loretta Mester will speak in the morning. Atlanta Fed President Dennis Lockhart will follow this up with a speech after the close.

Companies reporting earnings include Archer-Daniels-Midland (ADM), Avis Budget (CAR), CBS (CBS), Clorox (CLX), Cummins (CMI), Duke Energy (DUK), Estee Lauder (EL), Etsy (ETSY), Fresh Del Monte (FDP), Glu Mobile (GLUU), GrubHub (GRUB), Halliburton (HAL), Hyatt Hotels (H), Illumina (ILMN)Molson Coors Brewing (TAP), Pitney Bowes (PBI), Sprint (S)Starwood Hotels (HOT), Western Union (WU), Valero Energy (VLO), and Zillow (ZG). To see what else is coming up on this week's schedule, click here

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