Oil Fuels Gains in Dow Jones Industrial Average Futures

The Earnings Event That Could Haunt Bill Ackman

by Alex Eppstein

Published on May 5, 2016 at 9:04 AM

Dow Jones Industrial Average ​​(DJIA) futures are perched above fair value, boosted by an earnings beat by Dow stock Merck & Co., Inc. (NYSE:MRK) and rising oil prices. Specifically, June-dated crude futures are up 3.5% at $45.31 per barrel, as a fire near Canada's oil sands region and mounting political tensions in Libya threaten near-term supply. On the data front, weekly jobless claims rose much more than expected, to 274,000, but the impact on stocks has been negligible so far.

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

dow futures may 5

Futures on the Dow Jones Industrial Average (DJIA) are nearly 51 points above fair value.

5 Things You Need to Know Today

  1. Chinese markets ended a choppy session higher thanks to crude oil, while European stocks are up modestly as traders brace for tomorrow's U.S. nonfarm payrolls report.
  2. The Chicago Board Options Exchange (CBOE) saw 703,647 call contracts traded on Wednesday, compared to 562,726 put contracts. The resultant single-session equity put/call ratio rose to 0.80, while the 21-day moving average remained at 0.69.
  3. Alibaba Group Holding Ltd (NYSE:BABA) is pointed 3.5% higher pre-market, as a 39% year-over-year rise in revenue offset an earnings miss -- turning up the heat on this big-time bearish bettor.
  4. One week after reporting an earnings beat, Ford Motor Company (NYSE:F) posted its biggest year-over-year retail sales drop on record in China last month, with sales tumbling 11%. Meanwhile, U.S. rival General Motors Company (NYSE:GM) bounced back from March's 0.6% sales decline, gaining 7.5% in April.
  5. Tesla Motors Inc (NASDAQ:TSLA) is set to pop 4% at the open, after the electric automaker reported a narrower-than-expected quarterly loss and matched revenue estimates, while also raising its production targets. No fewer than six analysts have raised their price targets on the results, and short sellers may be rethinking their bearish positions, as well.

Buzz Stocks May 5_2

Earnings and Economic Data

There is nothing notable on the economic front. Earnings wise, 3D Systems (DDD)Activision Blizzard (ATVI), AMC Networks (AMCX), AmerisourceBergen (ABC), Avon Products (AVP), Chesapeake Energy (CHK)Clovis Oncology (CLVS)Cyberark Software (CYBR), Discovery Communications (DISCA), Dreamworks Animation (DWA), El Pollo Loco (LOCO), FireEye (FEYE), GoPro (GPRO), Kellogg (K), MGM Resorts (MGM)Mobileye N.V. (MBLY), Motorola Solutions (MSI), News Corp (NWSA), Regeneron Pharmaceuticals (REGN)SeaWorld (SEAS)Square (SQ), SunPower (SPWR), Tableau Software (DATA), TreeHouse Foods (THS), Windstream (WIN), and Yelp (YELP) will announce. To see what else is coming up on this week's schedule, click here

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