Dow Jones Industrial Average Eyes a Bounceback Session

2 Auto Stocks About to Break Out? Plus, Tesla's 'Master Plan' Bombs

by Alex Eppstein

Published on Jul 22, 2016 at 9:16 AM

Dow Jones Industrial Average (DJIA) futures are sitting modestly above fair value -- just a day after the index snapped its nine-day win streak -- on pace for a fourth straight weekly win, as stocks react to the latest raft of earnings. Among Dow stocks, Visa Inc (NYSE:V) is slightly higher pre-market after the firm announced an earnings beat and a $5 billion stock buyback plan, while General Electric Company (NYSE:GE) is 2.4% lower after the blue chip's warning about the "volatile and slow growth economy" and a 2% slip in orders. Stocks could move on data later this morning, too, with Markit's flash purchasing managers manufacturing index (PMI) due out. 

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

dow futures july 22

Futures on the Dow Jones Industrial Average (DJIA) are nearly 19 points above fair value.

5 Things You Need to Know Today
 

  1. Japanese stocks dove despite the launch of Pokemon Go, pressured by a stronger yen and falling oil prices.
  2. The Chicago Board Options Exchange (CBOE) saw 834,207 call contracts traded on Thursday, compared to 506,596 put contracts. The resultant single-session equity put/call ratio jumped to 0.61, while the 21-day moving average dipped to 0.64.
  3. After getting hit with sector headwinds yesterday, American Airlines Group Inc (NASDAQ:AAL) delivered adjusted per-share earnings and revenue that topped the Street's consensus estimate. However, the airline's net profit plunged 44% year-over-year due to a huge income tax provision, while consolidated passenger revenue per available seat mile (PRASM) fell 6.3%.
  4. Starbucks Corporation (NASDAQ:SBUX) is bracing for another negative earnings reaction, pointed 2.5% lower pre-market, after the coffee concern reported disappointing same-store sales growth. Making matters worse, no fewer than seven analysts have responded with price-target cuts.
  5. More bad news for Chipotle Mexican Grill, Inc. (NYSE:CMG) -- the restaurant operator's quarterly earnings and sales came up short of Wall Street's consensus view, while comparable-store sales fell a wider-than-forecast 23.6% amid lingering food-safety concerns. At least three brokerage firms have responded by reducing their price targets, pressuring CMG 3% lower pre-market.

Buzz Stocks July 22

Earnings and Economic Data

The week will wrap up with Markit's flash PMI. Reports from Honeywell (HON), Stanley Black & Decker (SWK), VF Corp (VFC), and Whirlpool (WHR) will round out the week's earnings calendar. To see what is on next week's schedule, click here

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