Dow Jones Industrial Average Futures Fall as GDP, Oil Weigh

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Jul 29, 2016 at 9:13 AM
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Dow Jones Industrial Average (DJIA) futures are trading below fair value this morning, signaling a fifth straight loss for the benchmark. The Dow has already shed 0.6% for the week, and downbeat earnings from blue-chip stocks Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) could exacerbate these losses. At the same time, futures on the Nasdaq Composite (COMP) are in the black, thanks to strong earnings reports from tech stocks Alphabet Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN). 

Stocks are also reacting to this morning's preliminary second-quarter gross domestic product (GDP) data, which indicated the U.S. economy grew at an annual rate of 1.2% -- well below expectations. What's more, oil prices continue to fall, with September-dated crude futures last seen 1.2% lower at $40.65 per barrel. 

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


U.S. stock futures July 29

Futures on the Dow Jones Industrial Average (DJIA) are 57 points below fair value. 

5 Things You Need to Know Today
 

  1. Stocks in Asia swooned following the Bank of Japan's (BoJ) surprise policy decision.
  2. The Chicago Board Options Exchange (CBOE) saw 967,086 call contracts traded on Thursday, compared to 596,175 put contracts. The resultant single-session equity put/call ratio declined to 0.62, while the 21-day moving average remained at 0.62.
  3. Analysts are once again scrambling to raise their price targets on AMZN, after the company reported strong second-quarter earnings and revenue. Among the many that upped their expectations for the stock was Deutsche Bank, setting a price target of $985 -- a 30.9% premium to AMZN's close of $752.61 on Thursday. Shares of AMZN are up 2% in pre-market trading, set to open at all-time highs. 
  4. GOOGL is up over 4% before the open, thanks to the company's stronger-than-expected earnings report. Several analysts put their price targets in record-high territory, including Deutsche Bank, setting the bar at $1,050 -- a 37% premium to last night's close of $765.84. Elsewhere, it would seem GOOGL options traders will make out quite nicely today. 
  5. Travel stock Expedia Inc (NASDAQ:EXPE) is on the way lower this morning, dropping over 5% in electronic trading, following disappointing quarterly revenue. Although a few brokerage firms reduced their price targets on EXPE, J.P. Morgan Securities was the only one to set its target at a discount to the stock's Thursday close at $119.27. This is a change of pace for EXPE, which stormed higher following last quarter's earnings release

Buzz Stocks July 29

Earnings and Economic Data

The employment cost index (ECI), the Chicago PMI, and the Thomson Reuters/University of Michigan consumer sentiment index are all set for release. San Francisco Fed President John Williams and Dallas Fed President Rob Kaplan are also set to speak. 

Merck (MRK), AbbVie (ABBV), Anheuser-Busch (BUD), LyondellBasell (LYB), Phillips 66 (PSX), Sony (SNE), Spirit Airlines (SAVE)United Parcel Service (UPS), and Xerox (XRX) are scheduled to reveal earnings. To see what's coming up on next week's schedule, click here

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