Dow Jones Industrial Average Futures Edge Higher as Fed Meeting Kicks Off

Which Conflicting SPY Chart Pattern Will Prevail?

Nov 1, 2016 at 9:23 AM
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Dow Jones Industrial Average (DJIA) futures are perched above fair value this morning, after the large-cap index ended its third straight month in the red. The Federal Open Market Committee (FOMC) will begin its two-day policy meeting today, though no changes to fiscal policy are expected. Still, traders will be looking ahead to the Fed's statement tomorrow afternoon for clues on whether interest rates will be raised in December.

Uncertainty over next week's U.S. presidential election continues to take center stage, as well. In the latest twist, a New York Times report alleges Donald Trump may be hiding "dubious" tax avoidance strategies. Meanwhile, the Street continues to digest the latest earnings reports, as well as upbeat manufacturing data out of China.

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

Dow Futures November 1

Futures on the Dow Jones Industrial Average (DJIA) are nearly 25 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 605,766 call contracts traded on Monday, compared to 454,430 put contracts. The resultant single-session equity put/call ratio slipped to 0.75, while the 21-day moving average edged up to 0.65.
  2. Recent call buyers could be on edge today, after drugmaker Pfizer Inc. (NYSE:PFE) reported earnings below expectations, sending the stock down 2.2% in electronic trading. The company also cut its full-year guidance and announced it will abandon development of cholesterol drug bococizumab.
  3. Automaker Tesla Motors Inc (NASDAQ:TSLA) revealed it will hold a webcast today at 5 p.m. ET to discuss the planned acquisition of SolarCity Corp (NASDAQ:SCTY), which will follow a Q&A format. A vote on the pending merger is due later this month.
  4. Online retail giant Amazon.com, Inc. (NASDAQ:AMZN) has holiday shopping in sight, announcing the launch of its "Black Friday Deals Store," which will offer new deals as often as every five minutes through Dec. 22.
  5. Motor vehicle sales, the Markit PMI manufacturing index, and the Institute for Supply Management's (ISM) manufacturing index are slated for release, while the two-day FOMC meeting kicks off. Boyd Gaming (BYD), Electronic Arts (EA), Gilead Sciences (GILD), Square (SQ), and U.S. Steel (X) are among the companies due to report earnings.

buzz_stocks nov 1

Overseas Trading

Stocks in Asia ended higher, after China's official purchasing managers manufacturing index (PMI) hit a two-year high of 51.2 for the month of October, indicating stabilization within the Chinese economy. The news lifted stocks across the board, with commodity stocks in particular enjoying big days. By the close, the Shanghai Composite tacked on 0.7%, and Hong Kong’s Hang Seng was 1.1% higher.

Elsewhere, the Bank of Japan (BoJ) decided to keep its stimulus policy unchanged -- though the central bank lowered its inflation forecast. As a result, Japan’s Nikkei edged up 0.1%. In South Korea, the Kospi closed slightly lower amid the ongoing political drama surrounding President Park Geun-hye.

European markets are mostly lower so far today, with several major companies reporting lackluster earnings results. Most notably, oil stock BP plc is sliding at midday, after the company reported net income that fell by nearly half year-over-year. Still, mining stocks are outperforming thanks to China's upbeat manufacturing data. In addition, uncertainty around the U.S. presidential election is also weighing on investors, although Hillary Clinton managed to maintain a solid lead over Donald Trump in the latest polls. At last check, London's FTSE 100 is clinging to fractional gains, while Germany's DAX is down 0.2%, and France's CAC 40 is 0.2% lower.

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