Dow Jones Industrial Average Futures Barely Higher After Record Close

What a Black Friday Hangover Could Mean for Stocks

Nov 23, 2016 at 9:08 AM
facebook twitter linkedin

Dow Jones Industrial Average (DJIA) futures are just above fair value this morning, after the index ended Tuesday's session above the 19,000 level for the first time ever. Meanwhile, the S&P 500 Index (SPX) and Nasdaq Composite (COMP) -- which also notched new record highs yesterday -- are pointing slightly lower ahead of the open. Among stocks in focus, Merck & Co., Inc. (NYSE:MRK) could weigh on the blue-chip index, with the drugmaker headed lower in sympathy with Eli Lilly & Co (NYSE:LLY), which abandoned a key drug.

Traders are preparing for a busy day of economic data ahead of the Thanksgiving holiday, which will have U.S. markets closed on Thursday, followed by a shortened session Friday. So far this morning, durable goods orders rose a bigger-than-expected 4.8% in October, and weekly jobless claims jumped by 18,000, to 251,000, just above predictions. Looking ahead, Wall Street will dissect the meeting minutes from the Fed's November policy meeting.

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

Dow Futures November 23

Futures on the Dow Jones Industrial Average (DJIA) are 11 points above fair value.

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 874,720 call contracts traded on Tuesday, compared to 551,658 put contracts. The resultant single-session equity put/call ratio climbed to 0.63, while the 21-day moving average remained at 0.67.
  2. Drugmaker Eli Lilly and Co (NYSE:LLY) is set to open at an annual low, giving up 14% in pre-market trading. The company announced that its experimental Alzheimer's treatment failed in a late-stage trial, leading the firm to abandon its plans to seek approval for the drug.
  3. After tapping an annual high on Tuesday, heavy machinery maker Deere & Company (NYSE:DE) is up 12% ahead of the bell, on track to open at its highest level in since mid-2000, and not far off a record peak. The company's quarterly report beat expectations, with CEO Samuel Allen noting, "The company in 2016 had one of its ten-best years in both sales and earnings, a noteworthy achievement in light of the difficult business climate."
  4. Recent put players could be vindicated today, with apparel retailer Urban Outfitters, Inc. (NASDAQ:URBN) down nearly 10% in electronic trading, following an earnings miss. Already pessimistic analysts have already begun lowering their outlooks on the stock, which is set to break with its recent earnings history.
  5. The purchasing managers manufacturing index (PMI), new home sales, weekly crude inventories, and the Thomson Reuters/University of Michigan consumer sentiment survey will round out a busy day for the economic calendar. Meanwhile, the earnings schedule will remain quiet for the rest of the week.

Buzz Stocks Nov 23

Overseas Trading

Asian stocks ended the day mostly lower, with Japanese markets closed for holiday. Hong Kong's Hang Seng closed with a modest 0.01% loss, while China's Shanghai Composite ended down 0.2%. South Korea's Kospi bucked the bearish trend, though, finishing up 0.2% -- despite reports the country's National Pension Service and Samsung Group offices were raided in suspicion of connections to the recently indicted President Park Geun-hye.

European stocks are mixed at midday, as stocks react to IHS Markit preliminary data that showed eurozone manufacturing activity rose at its fastest pace in 11 months in November. London's FTSE is up 0.2%, after U.K. Finance Minister Philip Hammond's "Autumn Statement" budget presentation, which cut Britain's economic growth forecast over the next two years. Elsewhere, the French CAC 40 is down 0.4%, while Germany's DAX is off 0.5%.

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners