Dow Jones Industrial Average Futures Rally On Big-Cap Earnings

Rates, Earnings, and the Critical Juncture for Oil Stocks

Josh Selway

Oct 18, 2016 at 9:13 AM

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Dow Jones Industrial Average (DJIA) futures are trading more than 100 points above fair value, as traders digest earnings reports from several major U.S. companies. Keeping bank stocks' recent hot streak alive, Goldman Sachs Group Inc (NYSE:GS) is trading higher following an impressive earnings report. Meanwhile, fellow Dow stock UnitedHealth Group Inc (NYSE:UNH) is also set for a post-earnings gain, while streaming giant Netflix, Inc. (NASDAQ:NFLX) is on pace for a double-digit percentage surge of its own. Economic data will also be in focus, after the closely watched consumer price index (CPI) rose in line with expectations in September.

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

2 analysts expecting record highs from Facebook Inc (NASDAQ:FB).
The healthcare event that has this biotech stock's options pits buzzing.
Rates, earnings, and the critical juncture for oil stocks, according to Schaeffer's Senior Equity Analyst Joe Bell, CMT.
Plus... Inflation data lifts European markets, Netflix subscriber growth impresses, and IBM sinks again.

U.S. Stock Futures October 18

Futures on the Dow Jones Industrial Average (DJIA) are nearly 105 points above fair value.

5 Things You Need to Know Today

European stocks are gaining following stronger-than-expected inflation data out of the U.K.
The Chicago Board Options Exchange (CBOE) saw 677,746 call contracts traded on Monday, compared to 417,696 put contracts. The resultant single-session equity put/call ratio fell to 0.62, while the 21-day moving average held steady at 0.65.
NFLX is eyeing a 19% surge at the open, after the entertainment company added far more subscribers during the third quarter than Wall Street expected. The upside move would put NFLX stock in territory not seen since January, and should make pre-earnings speculators very, very happy.
One stock not celebrating this morning is blue chip International Business Machines Corp. (NYSE:IBM). Although the tech giant once again posted stronger-than-expected quarterly earnings, it's down 2.7% in pre-market trading, due to a drop in margins. Amazingly, this would mark at least the ninth straight one-day, post-earnings move to the downside for IBM -- although the shares are up 12.5% year-to-date, as of Monday's close of $154.77.
Looking past this morning's earnings buzz, automaker Ford Motor Company (NYSE:F) announced that it is halting production of its F-150 truck series for a week at a Kansas City assembly plant, while also closing down three other plants during the same time period. Overall, 13,000 hourly workers will be laid off. Shares of F are down almost 23% over the past year.

Buzz Stocks Oct 18_2

Earnings and Economic Data

Today's docket also contains the NAHB housing market index and Treasury International Capital (TIC) data. Telling all in the earnings booth are Intel Corporation (INTC), Johnson & Johnson (JNJ), BlackRock (BLK), Cree (CREE), Domino's Pizza (DPZ), Harley-Davidson (HOG), Intuitive Surgical (ISRG), and Philip Morris International (PM). To see what else is on this week's schedule, click here.

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