DJIA futures are trading below fair value ahead of the release of the FOMC's April meeting minutes
Dow Jones Industrial Average (DJIA) futures are trading below fair value, as traders exercise caution with the release of the Federal Open Market Committee's (FOMC) April meeting minutes set for 2 p.m. ET. Talk of a June rate hike has accelerated dramatically in recent days, following yesterday's
inflation data and
hawkish comments from regional Fed presidents. The economic calendar is relatively clear otherwise, while retail stocks remain in the earnings spotlight.
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are 47 points below fair value.
5 Things You Need to Know Today
- Rate-hike worries are sinking stocks around the globe.
- The Chicago Board Options Exchange (CBOE) saw 669,465 call contracts traded on Tuesday, compared to 539,064 put contracts. The resultant single-session equity put/call ratio jumped to 0.81, while the 21-day moving average edged up to 0.76.
- Not to be outdone by its primary competitor, Lowe's Companies, Inc. (NYSE:LOW) this morning posted a first-quarter earnings beat and raised its full-year forecast. The retail stock is pointed 2.3% higher in electronic trading, as the shares try to break out from recent consolidation in the $75-$78 area. Looking back, LOW's all-time high rests at $78.13.
- We've recently highlighted the growing bullish tilt toward Tesla Motors Inc (NASDAQ:TSLA) among analysts, which began after the company's earnings report earlier this month. Goldman Sachs is the latest to join in, this morning raising its opinion on TSLA to "buy" from "neutral," sending the shares 2.7% higher in pre-market trading.
- The next post-earnings retail loser looks to be Target Corporation (NYSE:TGT), as the shares slide 7.4% before the open. The retailer's first-quarter per-share earnings were better than Wall Street anticipated, but same-store sales and revenue disappointed, and the company offered cautious current-quarter guidance. This pending sell-off should at least benefit these TGT speculators, though.
Earnings and Economic Data
Weekly crude inventories will also be released today. Stepping up to the earnings plate Wednesday are Cisco Systems (CSCO), American Eagle (AEO), Hormel Foods (HRL), L Brands (LB), salesforce.com (CRM), Staples (SPLS), Take-Two Interactive (TTWO), and Urban Outfitters (URBN). To see what's coming up on this week's schedule, click here.
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