Yellen Momentum Lifts Dow Jones Industrial Average Futures

Dow Jones Industrial Average (DJIA) futures are trading above fair value this morning, as stocks look to carry over Monday's positive momentum. The Nasdaq Composite (COMP) and S&P 500 Index (SPX) are also eyeing positive starts, with the latter hoping to knock out another year-to-date high after Fed Chair Janet Yellen's speech on Monday boosted the broader stock market. Elsewhere, fresh M&A reports have Dow stock Verizon Communications Inc. (NYSE:VZ) in the news, while productivity and labor costs headlines today's economic data. 

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

• The SPY level to watch amid the Fed and "Brexit" drama, courtesy of Schaeffer's Senior V.P. of Research Todd Salamone. 
• This stock got rocked after analysts called for an industry slowdown.
• Why more highs could be in store for Johnson & Johnson (NYSE:JNJ). 
• Plus... Verizon eyes Yahoo, Valeant tanks, and another drug stock booms. 

Futures on the Dow Jones Industrial Average (DJIA) are almost 39 points above fair value. 

5 Things You Need to Know Today
 

1. Stocks around the world are moving higher following Yellen's speech. 
2. The Chicago Board Options Exchange (CBOE) saw 646,574 call contracts traded on Monday, compared to 382,361 put contracts. The resultant single-session equity put/call ratio stayed at 0.59, while the 21-day moving average edged down to 0.71.
3. Reports this morning suggest VZ is planning to bid roughly $3 billion for Yahoo! Inc.'s (NASDAQ:YHOO) core internet business. VZ has long been considered the favorite to buy the struggling YHOO arm, despite reports late last month that the telecom giant's main competitor was considering a bid, as well. Meanwhile, YHOO is down 1% in pre-market trading. 
4. As some analysts predicted, it appears more trouble is ahead for Valeant Pharmaceuticals Intl Inc (NYSE:VRX). The drugmaker is looking at an 18% setback when the market opens, after it released a worse-than-expected (delayed) first-quarter earnings report, and slashed its full-year guidance. The pending move will put the stock near its five-year low from last month. 
5. Fellow drugmaker Sarepta Therapeutics Inc (NASDAQ:SRPT) has also been all over the charts this year, amid ongoing speculation surrounding its Duchenne muscular dystrophy (DMD) treatment, eteplirsen. Today, the shares are eyeing a 34% surge, after the company last night said the Food and Drug Administration (FDA) has asked for more data on the treatment before it makes it a decision. What's more, Wedbush upgraded SRPT to "outperform" from "neutral," and boosted its price target to $36 from $14. 

Earnings and Economic Data

Dave & Buster's (PLAY), HD Supply Holdings (HDS), and VeriFone (PAY) are set to release results. To see what is coming up on this week's schedule, click here. 

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