Dow Jones Industrial Average Futures Lower; Weekly Win Still in Sight

Analyst: Buy the Fear on 'FANG' Stocks

Nov 18, 2016 at 9:06 AM
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Dow Jones Industrial Average (DJIA) futures are just below fair value this morning, though the index is still on pace for a weekly win after post-election momentum kept stocks soaring through the early part of the week. Investors this morning are weighing comments from St. Louis Fed President James Bullard, who said he is "leaning towards supporting" an interest rate hike in December, echoing Thursday's hawkish remarks from Fed Chair Janet Yellen. Traders will be eyeing policymakers throughout the session, with several more speeches from Fed officials on tap today.

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

Dow Futures November 18

Futures on the Dow Jones Industrial Average (DJIA) are roughly 7 points below fair value.

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 984,385 call contracts traded on Thursday, compared to 635,296 put contracts. The resultant single-session equity put/call ratio edged up to 0.65, while the 21-day moving average sat put at 0.66.
  2. Alternative energy interest SolarCity Corp (NASDAQ:SCTY) is set to add 3.2% at the open following last night's vote, in which shareholders approved the pending merger with Tesla Motors Inc (NASDAQ:TSLA). TSLA shareholders also overwhelmingly voted in favor of the deal, and the automaker stock is up 1.2% in electronic trading.
  3. A strong showing in the earnings confessional has cloud concern, inc. (NYSE:CRM) up 7.2% ahead of the open, while analysts are already weighing in. Should these gains materialize, CRM would find itself on track for a close in positive year-to-date territory for the first time since August.
  4. Apparel retailer Abercrombie & Fitch Co. (NYSE:ANF) has shed nearly 12% in pre-market trading, putting it on pace to open within striking distance of a fresh 16-year low -- which should delight recent option bears. The company reported earnings and revenue well below analyst expectations as same-store sales fell by 6% for the quarter.
  5. Fed talk will be in focus today, with Kansas City Fed President Esther George, New York Fed President William Dudley, and Dallas Fed President Robert Kaplan slated to speak. Federal Reserve Governor Jerome Powell will also give a speech late this evening. In addition, the weekly Baker Hughes rig count will be released, as well as the Kansas City Fed manufacturing index. For earnings, retailers Buckle (BKE), Foot Locker (FL), and Hibbett Sports (HIBB) will step into the spotlight.

Buzz Stocks Nov 18

Overseas Trading

Asian markets ended the week mixed, as stocks reacted to U.S. Fed Chair Janet Yellen's relatively hawkish comments, along with a strengthening greenback. Japan's Nikkei gained 0.6% -- and entered a bull market -- on a weaker yen. China's Shanghai Composite shed 0.5%, as data showed new home prices rose at a faster pace in October than the previous month. Meanwhile, Hong Kong's Hang Seng tacked on 0.4%, while the South Korean Kospi finished down 0.3%.

European stocks are also mixed, as the U.S. dollar takes aim at a 10-day win streak against the euro -- the longest on record -- and European Central Bank President (ECB) Mario Draghi indicated a possible expansion of stimulus measures. Specifically, Draghi said the ECB "cannot yet drop [its] guard," and "will continue to act, as warranted, by using all instruments available" to help boost inflation. At last check, the German DAX is up 0.2%, as shares of Volkswagen trade higher after the automaker announced sweeping job cuts. London's FTSE 100 is 0.03% lower as energy and mining stocks retreat, and the French CAC 40 is down 0.2%.

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