Dow Jones Industrial Average Futures Signal a Rebound

The Accidental Downgrade That Sparked a Dramatic Sell-Off

May 20, 2016 at 9:08 AM
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​The Dow Jones Industrial Average (DJIA) looks ready to follow global stock indexes higher this morning, after two days of Fed-induced losses. Traders are turning their attention back to oil prices, as they stare down 2016 highs -- though June-dated crude futures, which expire today, were last seen slightly lower at $48.09 per barrel. Elsewhere, corporate earnings are slim today, putting more attention on existing home sales, set for release shortly after the market opens. Against this backdrop, Dow futures are trading comfortably above fair value, though the large-cap index remains on pace for a fourth straight weekly loss. 

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

U.S. Stock Futures May 20

Futures on the Dow Jones Industrial Average (DJIA) are 53.6 points above fair value. 

5 Things You Need to Know Today

  1. Global stock markets moved higher, despite recent hawkish comments from Fed members. 
  2. The Chicago Board Options Exchange (CBOE) saw 727,104 call contracts traded on Thursday, compared to 581,805 put contracts. The resultant single-session equity put/call ratio moved up to 0.80, while the 21-day moving average stayed at 0.76.
  3. Applied Materials, Inc. (NASDAQ:AMAT) is poised to add over 8% -- and topple the closely watched $20 level -- after the company's fiscal second-quarter earnings beat and impressive current-quarter forecast. A round of bullish analyst notes has ensued, including an upgrade to "buy" from "neutral" at B. Riley. 
  4. Yahoo! Inc. (NASDAQ:YHOO) has given back over 5% in pre-market trading, after The Wall Street Journal reported the auction for the digital company's core business is expected to fetch around $2 billion-$3 billion -- well below previous estimates. YHOO should still sit above breakeven year-to-date, but options traders can't be happy about this news
  5. After seeing its shares fluctuate yesterday following mixed drug data, biotech ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) is eyeing another 5.6% tumble at the open. The stock has been carving out lower highs and lows in recent months, and today's potential dip would mark its lowest open since Feb. 23. 

Buzz Stocks May 20

Earnings and Economic Data

A short list of companies due to report earnings includes Buckle (BKE), Campbell Soup (CPB), Deere (DE), and Foot Locker (FL). To see what's coming up on next week's schedule, click here

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