ADP Data Weighs on Dow Jones Industrial Average

20 Stocks to Buy Before Labor Day

by Celeste Taylor

Published on Aug 31, 2016 at 9:17 AM
Updated on Aug 31, 2016 at 9:17 AM

Dow Jones Industrial Average (DJIA) futures are set to open slightly lower, as stocks react to the ADP employment  report, which showed private-sector jobs increased by slightly more than expected in August. The data is often considered a precursor to the Labor Department's nonfarm payrolls report -- set for release on Friday, and a metric that has grown even more important after recent Fed comments on an impending interest rate hike.

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

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Futures on the Dow Jones Industrial Average (DJIA) are about 24 points below fair value.

5 Things You Need to Know Today
 

  1. Japanese stocks rallied as exporters celebrated a weaker yen.
  2. The Chicago Board Options Exchange (CBOE) saw 675,596 call contracts traded on Tuesday, compared to 423,609 put contracts. The resultant single-session equity put/call ratio rose to 0.63, while the 21-day moving average remained at 0.61.
  3. Palo Alto Networks Inc (NYSE:PANW) is set to drop 4.8% at the open, much to the dismay of recent options buyers. The cybersecurity company reported a steeper-than-expected fiscal fourth-quarter loss and forecast fiscal first-quarter earnings below estimates. This morning, Raymond James issued a downgrade to "outperform" from "strong buy," and cut its price target to $165 from $180. Meanwhile, no fewer than six brokerage firms issued price-target cuts, while at least three others issued price-target hikes for PANW.
  4. Gilead Sciences, Inc. (NASDAQ:GILD) is pointed 0.2% lower in pre-market trading, after the biopharmaceutical company received a price-target cut from Jefferies, to $91 from $93. The stock has struggled to make a comeback since its post-earnings drop in late April.
  5. Under Armour Inc (NYSE:UA) is set to open down 0.8% after receiving some negative analyst attention. UA was downgraded to "hold" from "buy" by Argus. This comes just one day after the apparel retailer announced it would open a 1.3 million square foot distribution center in Maryland to expand its e-commerce capabilities.

Buzz Stocks August 31

Earnings and Economic Data

The Chicago purchasing managers index (PMI), pending home sales, and the weekly crude inventories update are due. Earnings from Box Inc (BOX), Chico's FAS (CHS), Ctrip.com (CTRP), Five Below Inc (FIVE), Ollie's Bargain Outlet (OLLI), and salesforce.com (CRM) will be released. To see what else is coming up on this week's schedule, click here

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