MMR

Dow Jones Industrial Average Futures Up With Oil Prices

7 Signs Caution Reigns Supreme

May 24, 2016 at 9:07 AM
facebook X logo linkedin


Dow Jones Industrial Average (DJIA) futures are seated well above fair value in pre-market trading, setting up Dow stocks to recover nicely after Monday's modest retreat. The possibility of the Fed raising interest rates next month remains front and center, amid several rounds of hawkish comments from central bank officials. This group now includes Philadelphia Fed President Patrick Harker, who said last night he "can easily see the possibility of two or three rate hikes over the remainder of the year." However, stabilizing oil prices -- July-dated crude futures were last seen up 0.9% at $48.49 per barrel -- appear to be momentarily overshadowing the interest-rate chatter.

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

Dow futures May 24

Futures on the Dow Jones Industrial Average (DJIA) are roughly 92 points above fair value.

5 Things You Need to Know Today
 

  1. Asian markets buckled under rate-hike worries, while a rebound in crude oil prices is boosting stocks in Europe.
  2. The Chicago Board Options Exchange (CBOE) saw 733,580 call contracts traded on Monday, compared to 475,412 put contracts. The resultant single-session equity put/call ratio fell to 0.65, while the 21-day moving average held at 0.76.
  3. Best Buy Co Inc (NYSE:BBY) is pointed 4.2% lower pre-market, after the electronics retailer's current-quarter guidance fell shy of estimates -- overshadowing better-than-expected first-quarter earnings and sales. Additionally, BBY said Corie Barry will replace Sharon McCollam as chief financial officer, effective at the conclusion of the company's annual shareholder meeting on Tuesday, June 14. A downside gap could be received well by yesterday's crop of option bears
  4. Although Facebook Inc's (NASDAQ:FB) internal probe did not detect political bias in the social network's "Trending Topics" section, the company has nonetheless modified procedures to address the potential suppression of conservative news.
  5. The Coca-Cola Co (NYSE:KO) has temporarily shut down beverage production in Venezuela, due to a sugar shortage. However, sugarless drinks like Diet Coke will continue to be manufactured.


Buzz Stocks May 24


Earnings and Economic Data

Today's docket includes new home sales. Earnings are slated for DSW (DSW), Hewlett Packard Enterprise (HPE), and Intuit (INTU). To see what else is coming up on this week's schedule, click here

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check
 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
 (ad)