DJIA futures are slightly below fair value as oil prices slip
Dow Jones Industrial Average (DJIA) futures are below fair value today, signaling a negative start after
Wednesday's come-from-behind session. Oil prices are below breakeven, as traders await today's weekly crude inventories update, as well as developments from an Organization of the Petroleum Exporting Countries (OPEC) meeting, currently underway. At last check, July-dated crude futures were off 1.1% at $48.45 per barrel.
Additionally, stocks are digesting the latest jobs data and Fed speak, ahead of tomorrow's nonfarm payrolls report. Private companies added slightly fewer positions than expected, according to ADP, while weekly jobless claims unexpectedly fell. Elsewhere, Fed Governor Daniel Tarullo took a more dovish approach to raising interest rates, saying he wants "an affirmative reason to move."
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are nearly 13 points below fair value.
5 Things You Need to Know Today
- Japan stocks slumped as the yen surged, while the ECB's anticipated rate decision has left stocks in Europe mixed.
- The Chicago Board Options Exchange (CBOE) saw 694,650 call contracts traded on Wednesday, compared to 385,270 put contracts. The resultant single-session equity put/call ratio slipped to 0.55, while the 21-day moving average edged down to 0.73.
- Apple Inc. (NASDAQ:AAPL) is sitting 0.7% lower ahead of the bell, after Goldman Sachs cut its price target on the stock, citing expectations for lower smartphone growth expectations. Additionally, the brokerage firm lowered its full-year profit estimate and iPhone sales forecast.
- Johnson & Johnson (NYSE:JNJ) will purchase hair care company Vogue International. The deal, worth $3.3 billion, is set to close in the third quarter of this year.
- Goldman Sachs initiated coverage on chipmaker NVIDIA Corporation (NASDAQ:NVDA) with an upbeat "buy" rating and $54 price target -- in record-high territory. The shares are set to open 0.6% higher.
Earnings and Economic Data
Federal Reserve Governor Jerome Powell and Dallas Fed President Robert Kaplan will speak. The earnings slate is highlighted by Ambarella (AMBA), Broadcom (AVGO), Joy Global (JOY), and Zumiez (ZUMZ). To see what is coming up on this week's schedule, click here.
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