Dow Jones Industrial Average Futures Edge Higher Amid Earnings Blowout

The Under-the-Radar SPY Trendline to Watch This Week

Oct 25, 2016 at 9:10 AM
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Dow Jones Industrial Average (DJIA) futures are trading above fair value, as stocks react to a swarm of blue-chip earnings. Ahead of the open, Dow stocks DuPont (NYSE:DD), Merck & Co., Inc. (NYSE:MRK), Procter & Gamble Co (NYSE:PG), and United Technologies Corporation (NYSE:UTX) are all pointed higher post-earnings, while Caterpillar Inc. (NYSE:CAT), 3M Co (NYSE:MMM), and Visa Inc (NYSE:V) are in the red. Of course, this doesn't even include iPhone maker Apple Inc. (NASDAQ:AAPL), which reports after the close. Aside from earnings, traders will have the S&P CoreLogic Case-Shiller home price index and the Conference Board's consumer confidence survey to consider on the data front, as stocks look to gain for a second straight day. 

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

U.S. Stock Futures October 25

Futures on the Dow Jones Industrial Average (DJIA) are 7 points above fair value. 

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 877,340 call contracts traded on Monday, compared to 516,812 put contracts. The resultant single-session equity put/call ratio moved up to 0.59, while the 21-day moving average remained at 0.64.
  2. Athletic apparel stock Under Armour Inc (NYSE:UA) was looking like another post-earnings winner this morning, after the company beat Wall Street's third-quarter earnings expectations. However, the stock -- which has struggled in recent weeks -- was last seen 15% lower ahead of the open, as traders pan falling profit margins. 
  3. After adding almost 3% on Monday, General Motors Company (NYSE:GM) is edging higher once again, after the automaker blew past earnings estimates. The stock has been consolidating above its long-term 320-day moving average since a mid-September pullback, and could now take aim at its year-to-date breakeven mark. 
  4. Lockheed Martin Corporation (NYSE:LMT) is also on the rise pre-market thanks to an earnings beat, adding 1.4%. With LMT already up 6.9% in 2016, a round of positive analyst attention could drive the shares even higher, since just five of 11 brokerage firms recommend buying the stock. 
  5. Chipotle Mexican Grill, Inc. (CMG), Panera Bread Co (PNRA), and Express Scripts (ESRX) are some of the companies joining the earnings party after the close. 

Buzz Stocks Oct 25

Overseas Trading

It was a mixed finish for stocks in Asia, as traders reacted to economic data out of South Korea and a volatile session for oil prices. Specifically, South Korea's Kospi shed 0.5% for the day after data from the Bank of Korea showed a slowdown in gross domestic product (GDP) growth for the third quarter. Hong Kong's Hang Seng also closed lower, dropping 0.2%. Meanwhile, a stronger U.S. dollar translated to a weaker yen, boosting exporters in Japan, and helping the Nikkei tack on 0.8%. China's Shanghai Composite climbed 0.1%, boosted by commodity stocks, while the yuan fell to another six-year low against the dollar.

European markets are mostly higher at midday, with another round of corporate earnings in focus. While bank stocks are under pressure today, miners are among the top advancers, thanks to gains in metal prices. An upbeat report on business sentiment in Germany has the DAX up 0.3%, and fresh off a 2016 high. London's FTSE 100 has added 0.4%, and France's CAC 40 is up nearly 0.1%.

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