Dow Jones Industrial Average Futures Bounce Back on Strong GDP

Why a Rally Pause Right Now Is No Cause for Panic

Nov 29, 2016 at 9:03 AM
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Dow Jones Industrial Average (DJIA) futures are above fair value, indicating stocks are set to bounce back after stumbling on Monday. Boosting the markets this morning is the preliminary third-quarter gross domestic product (GDP) reading, which showed 3.2% annual growth for the period -- higher than the 2.9% expected, and the strongest growth seen in two years. Meanwhile, oil prices are pulling back as anxiety rises ahead of Wednesday's meeting of the Organization of Petroleum Exporting Countries (OPEC) in Vienna. The latest chatter is casting doubts upon a deal to cut production being reached, while non-OPEC member Russia will reportedly not attend the meeting. At last check, crude futures for January were off 3% at $45.66 per barrel.

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

Dow Futures November 29

Futures on the Dow Jones Industrial Average (DJIA) are 34 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 770,092 call contracts traded on Monday, compared to 436,091 put contracts. The resultant single-session equity put/call ratio fell to 0.57, while the 21-day moving average edged up to 0.67.
  2. Biotech issue Nivalis Therapeutics Inc (NASDAQ:NVLS) is set to open at a record low, dropping 52% in electronic trading after being briefly halted for news -- taking a sharply diverging path from this sector peer's action on Monday. The company reported its cystic fibrosis drug failed to meet endpoints in a mid-stage trial.
  3. Strong Black Friday sales could boost TrueCar Inc's (NASDAQ:TRUE) new vehicle sales for November by 3.6%, according to the company's chief industry analyst. The news has TRUE shares pointed 0.5% higher ahead of the bell, but the stock is still plagued by short sellers.
  4. Luxury jeweler Tiffany & Co. (NYSE:TIF) is set to add 5.2% at the open, which would put the stock at a fresh annual high. The company reported its first sales increase in eight quarters, beating analysts' expectations for both earnings and revenue.
  5. The S&P CoreLogic Case-Shiller home price index and the Conference Board's consumer confidence survey will be released today, and New York Fed President William Dudley is due to speak. Stepping into the earnings confessional will be Autodesk (ADSK), Mallinckrodt (MNK), Nutanix (NTNX), and Splunk (SPLK).  

Buzz Stocks Nov 29

Overseas Trading

Asian markets ended mixed, with stocks in Tokyo and Hong Kong following in Wall Street's bearish footsteps ahead of tomorrow's OPEC meeting, where an output cut agreement hangs in the balance. Japan's Nikkei gave up 0.3%, as a drop in bank and electronic stocks overshadowed steady unemployment data, and a less-than-expected decline in household spending and retail sales. Hong Kong's Hang Seng, meanwhile, dipped 0.4%. Elsewhere, the South Korean Kospi ended fractionally higher, paring earlier losses after a speech from scandal-ridden President Park Geun-hye, who offered to resign from her position. Elsewhere, China's Shanghai Composite tacked on 0.2%.

European markets are mixed at midday, ahead of Sunday's referendum on proposed constitutional changes in Italy -- and as oil prices fluctuate ahead of tomorrow's OPEC meeting. London's FTSE 100 is down 0.5%, after yesterday's speech by European Central Bank (ECB) President Mario Draghi, who warned Britain would "first and foremost" feel the effects of the Brexit process. Germany's DAX is 0.1% higher, after November inflation data came in unchanged from October, or lower than forecast. The French CAC 40 has added 0.6%, boosted by a bigger-than-expected rise in October consumer spending.

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