DJIA futures are trading above fair value this morning, as stocks react to this morning's GDP release
Dow Jones Industrial Average (DJIA) futures are trading above fair value this morning, with stocks reacting to this morning's advance reading on third-quarter gross domestic product (GDP). For the period, the U.S. economy grew by 2.9%, topping analysts' expectations of 2.5% growth. Meanwhile,
earnings season continues to roll on, headlined today by mixed results from Dow stocks Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM), as well as tech titans Alphabet Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN).
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are 19 points above fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1,024,239 call contracts traded on Thursday, compared to 563,813 put contracts. The resultant single-session equity put/call ratio fell to 0.55, while the 21-day moving average remained at 0.64.
- Tech heavyweights Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc (NASDAQ:GOOGL) are in focus this morning after releasing their quarterly results last night. Ahead of the open, AMZN is down 4.4%, after posting lower-than-expected profit for the period. Meanwhile, GOOGL is edging higher, after topping Wall Street's profit estimates.
- Chocolate master Hershey Co (NYSE:HSY) is also gaining in pre-market action, up 2%, thanks to strong quarterly results and an upbeat outlook. The shares already boast a 7% year-to-date lead, but obviously stand far below their M&A-induced highs from June.
- A major loser ahead of the open is drugmaker Novo Nordisk A/S (ADR) (NYSE:NVO). Down 13%, the shares are on pace to open at a two-year low, after the company halved its long-term growth forecast -- echoing concerns voiced in August.
- The Thomson Reuters/University of Michigan consumer sentiment index is also set for release today, as are earnings from Anheuser-Busch InBev (BUD) and Xerox (XRX). Meanwhile, next week's schedule features Facebook Inc (FB) earnings and the Federal Open Market Committee's (FOMC) November meeting.
Overseas Trading
Asian markets finished the day mixed, as crude oil traded slightly lower despite Thursday's upbeat comments regarding the Organization of Petroleum Exporting Countries (OPEC) potential production-cut deal. Stocks in the region continued to feel pressure from China's disappointing industrial profits data, with the Shanghai Composite and South Korea's Kospi giving back 0.2% apiece, and Hong Kong's Hang Seng dropping 0.8%. Japan's Nikkei bucked the downbeat trend -- adding 0.6% for the day -- as bank stocks surged on solid earnings for investment issue Nomura Holdings and a cooling yen boosted exporters. This helped overshadow the release of relatively weak inflation data, which showed consumer prices fell for a seventh straight month in September.
Thursday's gross domestic product (GDP) figures out of the U.K. are still in focus in Europe, where a sell-off in government bonds has led to higher bond yields globally. Additionally, fresh economic data showed economic confidence in the eurozone hit a 10-month high in October, fueled by strong gains in France and Spain. Among specific stocks in the spotlight today are French drugmaker Sanofi, up 7% after raising its forecast for the year, and beer giant Anheuser-Busch InBev, which dropped as much as 5% after cutting its growth guidance. At last check, London's FTSE 100 is up 0.1%, France's CAC 40 has added 0.3%, and Germany's DAX has given back 0.2%.
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