Dow Jones Industrial Average Futures Lower Despite Wal-Mart, Cisco Beats

3 Stocks Moving on M&A Buzz; Plus, 2 Levels to Watch on JPMorgan

by Josh Selway

Published on May 19, 2016 at 9:12 AM
Updated on May 19, 2016 at 9:18 AM

The Dow Jones Industrial Average (DJIA) looks set to extend Wednesday's slide, with Dow futures trading below fair value. Fed jitters continue to weigh on stocks, but impressive earnings and strong pre-market moves from Dow stocks Wal-Mart Stores, Inc. (NYSE:WMT) and Cisco Systems, Inc. (NASDAQ:CSCO) lifted major index futures off their lows. The Fed fascination isn't likely to disappear anytime soon, though, with Fed Vice Chairman Stanley Fischer and New York Fed President William Dudley both set to speak today. For economic data, weekly jobless claims fell -- though not as much as expected -- and the Philadelphia Fed business outlook survey missed expectations. 

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

U.S. Stock Futures May 19

Futures on the Dow Jones Industrial Average (DJIA) are about 61 points below fair value.

5 Things You Need to Know Today

  1. Global stocks continue to struggle amid Fed fears
  2. The Chicago Board Options Exchange (CBOE) saw 732,150 call contracts traded on Wednesday, compared to 552,373 put contracts. The resultant single-session equity put/call ratio moved down to 0.75, while the 21-day moving average stayed at 0.76.
  3. Blue-chip retailer WMT is rallying in electronic trading, after the company's impressive turn in the earnings booth. First-quarter earnings and revenue both beat expectations, putting the shares on track to open 8% higher. This move would be a nightmare for recent WMT options traders
  4. Automaker Tesla Motors Inc (NASDAQ:TSLA) has struggled on the charts since hitting a near-term high of $269.34 in early April -- even as analysts have raised their expectations -- closing Wednesday at $211.17. It looked like things were going to get worse for the stock after the company Wednesday night said it'd be selling $2 billion worth of shares to raise money for its Model 3, sending the shares lower in overnight action. However, TSLA was last seen 1% higher ahead of the open. 
  5. Confirming recent speculation, Bayer AG has made an unsolicited takeover offer for agricultural giant Monsanto Company (NYSE:MON). While no details on the deal have yet been released, it wouldn't be surprising to see antitrust issues come into play, considering what's happened with other recent merger attempts. Regardless, MON has added over 8% in pre-market action. 

Buzz Stocks May 19

Earnings and Economic Data

Advance Auto Parts (AAP), Applied Materials (AMAT), Autodesk (ADSK), Dick's Sporting Goods (DKS)Gap (GPS), and Ross Stores (ROST) are due to unveil quarterly earnings. To see what's coming up on this week's schedule, click here

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