Nasdaq Lags; Dow Jones Industrial Average Futures Point Higher

2 Plunging Medical Stocks In Need of CPR

Nov 3, 2016 at 9:16 AM
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Dow Jones Industrial Average (DJIA) futures are comfortably above fair value, looking to break a five-day losing streak that has the large-cap index down 1% so far for November, and below a key technical level. Stocks are reacting to a hefty round of earnings results this morning -- though Facebook Inc (NASDAQ:FB) results are weighing on the tech-heavy Nasdaq Composite (COMP) -- along with a bounce in oil prices. At last check, December-dated crude futures were 0.8% higher at $45.68 per barrel. 

Also influencing stocks this morning are weekly jobless claims, which came in slightly above estimates, hitting a roughly three-month high. Meanwhile, the preliminary reading on U.S. productivity signaled the highest level of growth in two years, after three consecutive quarters of declines. Finally, traders are eyeing an interest rate decision and upwardly revised gross domestic product (GDP) forecast from the Bank of England (BOE), as well as a high court's key Brexit decision.

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

Dow Futures November 3

Futures on the Dow Jones Industrial Average (DJIA) are 45 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 702,186 call contracts traded on Wednesday, compared to 697,220 put contracts. The resultant single-session equity put/call ratio rose to 0.99, while the 21-day moving average climbed to 0.68.
  2. Wearable tech specialist Fitbit Inc (NYSE:FIT) is set to open at a record low, plunging more than 29% in electronic trading, to the likely delight of bearish traders. The company reported earnings in line with estimates, but revenue fell short and FIT's current-quarter and full-year outlooks came in well below predictions.
  3. Option bulls may be cheering Chesapeake Energy Corporation's (NYSE:CHK) results, meanwhile. The company surprised the Street by reporting an adjusted profit for the first time in six quarters, sending the stock up 5.5% ahead of the bell.
  4. FB shareholders may be taking it on the chin this morning, as the company's slowing growth outlook seems to be overshadowing yet another quarterly earnings beat. The shares are set to open nearly 5% in the red, at their lowest level since late July.
  5. Factory orders and the ISM non-manufacturing index round out a busy day on the economic calendar. Among the companies heading into the earnings confession will be Starbucks (SBUX), GoPro (GPRO), Activision Blizzard (ATVI),  FireEye (FEYE), Las Vegas Sands (LVS), Level 3 Communications (LVLT), Skyworks Solutions (SWKS), and Weight Watchers International (WTW).

Buzz Stocks Nov 3

Overseas Trading

Asian markets ended mostly higher, with China's Shanghai Composite tacking on 0.8%, after the Caixin services purchasing managers index (PMI) signaled expansion in October. Elsewhere, South Korea's Kospi added 0.3%. Meanwhile, a 20th straight month of contraction in the Nikkei Hong Kong PMI weighed on the Hang Seng, dragging the regional benchmark down 0.6%. Markets in Japan were shuttered for holiday, with stocks unable to respond as the yen continued to strengthen against the U.S. dollar.

Most European stocks are higher at midday, as bank stocks rally amid a surging pound and a well-received round of earnings. Specifically, sterling is on the rise after a U.K. high court ruled the government will need a parliamentary vote of approval before initiating Brexit plans -- known as Article 50 -- though the government said it plans to appeal this ruling. Recovering oil prices are also boosting markets, with the French CAC 40 up 0.7%, and the German DAX tacking on 0.2%. Nevertheless, London's FTSE 100 is down 0.5%, pressured by the Brexit ruling -- and in the wake of the BoE's decision to leave interest rates unchanged. The central bank also indicated it would stand pat on its current monetary policy for the remainder of 2016.

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