Dow Jones Industrial Average Futures Dip Despite Jobs Data

25 Stocks to Avoid in the Third Quarter

by Josh Selway

Published on Jul 7, 2016 at 9:07 AM

Dow Jones Industrial Average (DJIA) futures are trading slightly below fair value this morning. Stocks look ready to cool after Wednesday's afternoon turnaround, despite another round of promising economic data ahead of Friday's nonfarm payrolls report. Specifically, weekly jobless claims handily beat expectations, falling to a near three-month low of 254,000, while private-sector employment rose by more than expected in June, according to ADP's report. Meanwhile, a government report on domestic crude inventories is set for release shortly after the open, with August-dated crude oil futures last seen 1% higher at $47.92 per barrel. 

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

U.S. Stock Futures July 7

Futures on the Dow Jones Industrial Average (DJIA) are 7.6 points below fair value. 

5 Things You Need to Know Today

  1. While stocks in Asia finished mixed, European equities are on the mend after yesterday's sell-off.
  2. The Chicago Board Options Exchange (CBOE) saw 662,230 call contracts traded on Wednesday, compared to 501,918 put contracts. The resultant single-session equity put/call ratio moved up to 0.76, while the 21-day moving average was also higher at 0.70.
  3. WhiteWave Foods Co (NYSE:WWAV) has jumped by 19% in electronic trading, on news that France-based Danone will buy the health-focused food company for $12.5 billion, or $56.25 per share -- a premium of 18.6% to WWAV's close of $47.43 on Wednesday. This is likely great news for a number of WWAV options traders
  4. Beverage and snack giant PepsiCo, Inc. (NYSE:PEP) is also gaining in pre-market action, up almost 2% -- and aiming for new highs in this historically positive quarter -- after the company reported better-than-expected second-quarter revenue and lifted its full-year profit outlook. Unfortunately, PEP options traders have been buying puts at a rapid pace in recent weeks -- a strategy they've employed since the beginning of the year. Still, PEP is up 6% in 2016, as of Wednesday's close at $105.92. 
  5. Data storage stock Western Digital Corp (NASDAQ:WDC) is another pre-market winner, picking up 4.3%. The company last night raised its fiscal fourth-quarter earnings and revenue forecast, while announcing a new chief financial officer. WDC shareholders have been holding out for some good news, as the stock is down 42% in the past 12 months -- though 70% of analysts still recommend buying the shares.

Buzz Stocks July 7

Earnings and Economic Data

Barracuda Networks (CUDA) will report earnings today. To see what else is coming up on this week's schedule, click here

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