DJIA futures are below fair value after the ECB decided to keep interest rates unchanged
Dow Jones Industrial Average (DJIA) futures are indicating a lower open this morning, as stocks react to the European Central Bank's (ECB) policy decision and latest round of
blue-chip earnings. Specifically, the ECB decided to keep interest rates unchanged, with traders now turning their attention to a press conference from bank president Mario Draghi. Back at home, Dow stock American Express Company (NYSE:AXP) is set for a post-earnings rally, though blue-chip peers Verizon Communications Inc. (NYSE:VZ) and Travelers Companies Inc (NYSE:TRV) are in the red. Meanwhile on the data front, weekly jobless claims rose slightly more than predicted, totaling 260,000 versus the 250,000 expected.
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are 12.6 points below fair value.
5 Things You Need to Know Today
- Stocks in Europe are struggling to hold gains following the ECB's decision.
- The Chicago Board Options Exchange (CBOE) saw 882,679 call contracts traded on Wednesday, compared to 522,220 put contracts. The resultant single-session equity put/call ratio fell to 0.59, while the 21-day moving average stayed at 0.67.
- AXP is on pace to open 6.4% higher, thanks to impressive quarterly results and a raised full-year outlook. Although the company topped Wall Street's estimates last quarter as well, today's potential pop would mark only the second times the shares have enjoyed a post-earnings gain during the last nine quarters, at least.
- VZ, on the other hand, is down 2.8% in electronic trading, after third-quarter revenue disappointed investors. Recent call buyers are also likely to be disappointed in the pending drop, while VZ shareholders await final word on the company's potential purchase of Yahoo! Inc. (NASDAQ:YHOO) assets.
- Also falling ahead of the open is Dunkin Brands Group Inc (NASDAQ:DNKN), down 1.4%. Despite posting slightly better-than-expected earnings for the third quarter, the company's sales disappointed. And even though DNKN sports a solid year-to-date lead of almost 20%, most analysts remain bearish.
Earnings and Economic Data
The Philadelphia Fed business outlook survey and existing home sales are also due out today. What's more, New York Fed President William Dudley will step behind the mic. Slated to report earnings are Microsoft (MSFT), Advanced Micro Devices (AMD), American Airlines (AAL), athenahealth (ATHN), E*TRADE Financial (ETFC), Fifth Third Bancorp (FITB), PayPal (PYPL),PulteGroup (PHM), Quest Diagnostics (DGX), Schlumberger (SLB), and Walgreens Boots Alliance (WBA). To see what else is on this week's schedule, click here.
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