DJIA futures are pointed lower, as stocks react to inflation data and hawkish Fed talk weigh
The
Dow Jones Industrial Average (DJIA) is set to snap its winning streak, after
seven straight up days and four consecutive record closing highs. Dow futures are below fair value, as stocks react to the latest inflation data and Fed fodder. Specifically, the producer price index (PPI) was unchanged in October, defying expectations for a modest gain. The core PPI -- which excludes food and energy -- fell 0.2%. Meanwhile, Minneapolis Fed President Neel Kashkari weighed in on the financial sector, stating, "I believe the biggest banks are still [too big to fail] and continue to pose a significant, ongoing risk to our economy," while St. Louis Fed President James Bullard said, "A single policy rate increase, possibly in December, may be sufficient to move monetary policy to a neutral setting," echoing
yesterday's comments from Boston Fed President Eric Rosengren.
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are 42 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.03 million call contracts traded on Tuesday, compared to 530,572 put contracts. The resultant single-session equity put/call ratio slipped to 0.51, while the 21-day moving average edged down to 0.66.
- DryShips Inc. (NASDAQ:DRYS) is set to pop almost 33% at the open, after tacking on a whopping 70.3% yesterday, as the shipping sector rallies in hopes that a Trump presidency will bring rising commodity prices and act as a boon to the shipping industry. DRYS has added a whopping 1,500% in the past week.
- Home improvement retailer Lowe's Companies, Inc. (NYSE:LOW) is poised to slide 4.4% at the open, after delivering a disappointing -- but not surprising --earnings report. LOW also downwardly revised its full-year forecast.
- Home Depot Inc (NYSE:HD) is set to continue its post-earnings slide at the open. Despite upwardly revising its full-year outlook, HD is positioned to drop another 0.7%, falling in step with LOW. Further, BMO, JPMorgan Securities, and Jefferies weighed in on HD with price-target cuts.
- Wal-Mart Stores, Inc. (NYSE:WMT) is riding sector peer Target Corporation's (NYSE:TGT) coattails higher, after TGT delivered an earnings win this morning, and upwardly revised its full-year forecast. WMT is set to pop 1.1% and continue its pre-holiday shopping boost, while TGT is headed for a 7.6% rally.
Overseas Trading
Asian indices closed mixed, with a weaker yen and a surge in energy and bank shares boosting Japan's Nikkei to a 1.1% advance, marking its highest close since Feb. 1. South Korea's Kospi also closed higher, adding 0.6%. Elsewhere, China's Shanghai Composite fell 0.1%, while Hong Kong's Hang Seng lost 0.2%.
In Europe, stocks are cooling after two days of strong gains. The latest employment data out of the U.K. is in focus, which showed unemployment in the region fell to 4.8% in the most recent quarter -- the lowest reading in more than 10 years. Among equities, engine manufacturer Rolls-Royce Holdings PLC and home builder Barratt Developments were among the biggest losers, while mining stocks also struggled. France's CAC 40 was last seen 0.9% lower, Germany's DAX was down 0.8%, and London's FTSE was sitting on a 0.7% retreat.
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