Dow Jones Industrial Average Futures On Eggshells Ahead of Yellen

Analysts: New Highs In Store for These 3 Stocks

by Celeste Taylor

Published on Aug 26, 2016 at 9:17 AM

Dow Jones Industrial Average (DJIA) futures are cautiously higher ahead of this morning's highly anticipated speech from Fed Chair Janet Yellen, which traders hope will provide insight about the timing of the next interest rate hike. Stocks are also holding steady after second-quarter gross domestic product (GDP) was downwardly revised to show 1.1% growth, compared to initial estimates of 1.2%.

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

160826OV1

Futures on the Dow Jones Industrial Average (DJIA) are about 11 points above fair value.

5 Things You Need to Know Today
 

  1. European markets are hovering near breakeven, as traders overseas anxiously await today's speech by U.S. Fed Chair Janet Yellen.
  2. The Chicago Board Options Exchange (CBOE) saw 621,103 call contracts traded on Thursday -- the fewest since June 9 -- compared to 467,199 put contracts. The resultant single-session equity put/call ratio rose to 0.75, while the 21-day moving average rose to 0.62.
  3. Herbalife Ltd. (NYSE:HLF)is down 6.3% in pre-market trading, after activist investor (and long-time HLF short) Bill Ackman told CNBC that he was contacted by Jefferies to buy HLF shares that Carl Icahn was looking to sell. This comes just two days after HLF sold off on chatter that Icahn was cutting his 18% stake.
  4. Dollar General Corp. (NYSE:DG)is set to open up 0.7%, paring some of yesterday's 17.6% post-earnings plunge. Since announcing its disappointing earnings results, the discount retailer has been hit with a slew of bearish analyst attention, including at least three downgrades and eight price-target cuts, and just this morning Credit Suisse cut DG to "neutral" from "outperform" and slashed its price target to $80 from $95.
  5. Big Lots, Inc. (NYSE:BIG) is up 1.9% ahead of the open, after once again announcing stronger-than-expected earnings -- bucking the discount-retailer trend. The company also upwardly revised its full-year outlook, and the stock could come within striking distance of its all-time high, touched on Aug. 15. 

Buzz Stocks August 26

Earnings and Economic Data

The week concludes with the international trade balance and the Thomson Reuters/University of Michigan consumer sentiment survey. Meanwhile, the earnings front will be relatively quiet. To see what else is coming up on next week's schedule, click here

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