Dow Jones Industrial Average Futures Signal a Higher Start

Exposing the Stock Market's Short-Term Vulnerabilities

by Karee Venema

Published on Aug 9, 2016 at 9:14 AM
Updated on Aug 9, 2016 at 9:20 AM

The Dow Jones Industrial Average (DJIA) looks poised to resume its longer-term uptrend, with futures trading above fair value. Stocks are reacting to a continued rise in oil prices -- with September-dated crude futures up 0.2% at $43.09 per barrel -- ahead of next month's highly anticipated meeting among global oil producers. Traders are also digesting a third straight (and unexpected) quarterly decline in productivity, as well as 2% annual increase in labor costs in the second quarter, following last Friday's blowout payrolls report. Looking ahead, wholesale inventories will be released at 10 a.m. ET, while Dow component Walt Disney Co (NYSE:DIS) is slated to report earnings after the close.

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

Dow futures August 9

Futures on the Dow Jones Industrial Average (DJIA) are 12 points above fair value.

5 Things You Need to Know Today

  1. Stocks in the U.K. are getting a lift following strong retail sales data, and after one central bank official threw out the idea of an additional interest rate cut.
  2. The Chicago Board Options Exchange (CBOE) saw 750,977 call contracts traded on Monday, compared to 435,289 put contracts. The resultant single-session equity put/call ratio rose to 0.58, while the 21-day moving average remained at 0.62.
  3. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is up nearly 10% in electronic trading, after the drugmaker unexpectedly confirmed its full-year guidance, even as second-quarter earnings fell short of estimates. Today's projected pop is much-need for the embattled stock, although it could have options traders on edge.
  4. Despite reporting a fiscal fourth-quarter top-line beat, shares of Coach Inc (NYSE:COH) are down 3.5% ahead of the bell, after the retailer's revenue missed the consensus estimate. Nevertheless, the stock is just a chip-shot away from annual-high territory, and sentiment among analysts is decidedly optimistic.
  5. Similar to sector peer LinkedIn Corp (NYSE:LNKD), Monster Worldwide, Inc. (NYSE:MWW) has received a $429 million buyout bid from Dutch recruitment firm Randstad Holding NV. This equates to $3.40 per MWW share -- a 23% premium to last night's close at $2.77. As such, shares of the job search engine are up 22% in electronic trading.

Buzz Stocks August 9_2

Earnings and Economic Data

Wholesale inventories will be released later this morning. Earnings are due from Fossil (FOSL), Cheniere Energy (LNG), Cyberark Software (CYBR), Halozyme Therapeutics (HALO), Infinity Pharmaceuticals (INFI), Jazz Pharmaceuticals (JAZZ), Mylan (MYL), Myriad Genetics (MYGN), Red Robin Gourmet Burgers (RRGB), SolarCity (SCTY)SunPower (SPWR), WhiteWave Foods (WWAV), Yelp (YELP), and ZIOPHARM Oncology (ZIOP). To see what else is coming up on this week's schedule, click here

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