FBI News Sends Dow Jones Industrial Average Futures Soaring Ahead of Election

What the Dow Is Saying About Who Will Win the White House

Nov 7, 2016 at 9:07 AM
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Dow Jones Industrial Average (DJIA) futures are more than 200 points above fair value, putting the index on track to win back most of last week's losses, and retake the key 18,000 level. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) are also on pace to snap their historic losing streaks. With no major economic reports on the docket today, stocks are responding to news that the FBI has again cleared presidential candidate Hillary Clinton in its probe of her private email use. The report comes just one day before Americans head to the polls. Meanwhile, oil prices are also on the rise. December-dated crude futures have added 1.4% to $44.70 per barrel, after the secretary-general of the Organization of the Petroleum Exporting Countries (OPEC) noted that all members of the group remain committed to a production-cut agreement.

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

Dow Futures November 7

Futures on the Dow Jones Industrial Average (DJIA) are more than 240 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 951,739 call contracts traded on Friday, compared to 666,015 put contracts. The resultant single-session equity put/call ratio slid to 0.70, while the 21-day moving average sat put at 0.69.
  2. Drugmaker Horizon Pharma PLC (NASDAQ:HZNP) is set to add 5.3% at the opening bell after reporting third-quarter earnings that topped analysts' expectations. The stock has been struggling lately, sitting on a year-to-date deficit of more than 30% heading into today's session.
  3. A slimmer-than-predicted quarterly loss is boosting shares of biotech Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) -- up 6.5% in electronic trading. This upbeat result may not be what recent option bears were hoping for, however.
  4. Financial stock LendingClub Corp (NYSE:LC) reported better earnings and revenue than expected for the third quarter, and said it secured a $1.3 billion purchase program from the National Bank of Canada. The stock is up nearly 10% ahead of the open, and LC could reward traders who listened to a recent bullish analyst note.
  5. Today's economic calendar is bare, but Chicago Fed President Charles Evans is scheduled to speak this afternoon. Among the companies slated to report earnings are ACADIA Pharmaceuticals (ACAD), Ariad Pharmaceuticals (ARIA), Depomed (DEPO), Horizon Pharma (HZNP). Hertz Global (HTZ), MGM Resorts (MGM), Microchip Technology (MCHP), and Priceline Group (PCLN).

Buzz Stocks Nov 7

Overseas Trading

Asian stock markets also responded favorably to news the FBI has cleared Hillary Clinton. In China, the Shanghai Composite ended the day up 0.3%, even as capital outflows fell by more than expected in October. Elsewhere, electronic and auto stocks pushed Japan's Nikkei 1.6% higher, as the dollar strengthened against the yen. Rounding out the region, South Korea's Kospi finished the day up 0.8%, and Hong Kong's Hang Seng gained 0.7%.

European stocks are also rising at midday, on the latest developments surrounding the U.S. presidential election, with the dollar strengthening against the euro. London's FTSE 100 is up 1.4%, boosted by post-earnings gains from banking stock HSBC Holdings PLC. Elsewhere, Germany's DAX has tacked on 1.6%, even as data showed German industrial orders dipped in September, while France's CAC 40 is sitting 1.6% higher.

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