Dow Jones Industrial Average Futures Pop as Oil Soars; OPEC in Focus

Does the Small-Cap Win Streak Mean Trouble for Stocks?

Nov 30, 2016 at 9:08 AM
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Dow Jones Industrial Average (DJIA) futures are above fair value, suggesting the large-cap index could be set to make another run at record highs. Boosting stocks this morning is a massive rebound in oil prices, with January-dated crude futures last seen 7.2% higher at $48.49 per barrel, as traders await the latest production-cut news out of today's Organization of Petroleum Exporting Countries (OPEC) meeting in Vienna, where a source has said an agreement has now been reached.

Also giving the markets a lift is the ADP private-sector employment report, which showed 216,000 jobs added in November -- well above the 165,000 expected, and nearly double October's results of 119,000. Meanwhile, personal income for October rose at the fastest rate in six months, though consumer spending increased by slightly less than expected. Plus, the Federal Reserve will be in focus today, with several Fed officials slated to speak and the release of the Beige Book due this afternoon.

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

Dow Futures November 30

Futures on the Dow Jones Industrial Average (DJIA) are 47 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 675,253 call contracts traded on Tuesday, compared to 418,811 put contracts. The resultant single-session equity put/call ratio popped to 0.62, while the 21-day moving average slipped back to 0.66.
  2. Camera maker GoPro Inc (NASDAQ:GPRO) is up 3% ahead of the bell, on news the company will cut 15% of its workforce, or about 200 jobs. Meanwhile, the company reported strong Black Friday sales, with CEO Nicholas Woodman noting, "Consumer demand for GoPro is solid and we've sharply narrowed our focus to concentrate on our core business."
  3. An earnings beat and strong outlook have software stock Splunk Inc (NASDAQ:SPLK) set to pop 6.3% at the open. Should these gains materialize, SPLK will find itself back in positive year-to-date territory, but that may not be the result options traders were hoping for.
  4. Cloud concern and relative newcomer Nutanix Inc (NASDAQ:NTNX) gave its first post-IPO earnings report last night, revealing a slimmer-than expected quarterly loss, beating on revenue, and giving an upbeat current-quarter outlook. Several brokerages have already weighed in with fresh bullish notes, yet traders were clearly unimpressed, as the stock is nearly 4% lower in electronic trading.
  5. The Chicago purchasing managers index (PMI), weekly crude inventories, and pending home sales are due for release today, as is the Fed's Beige Book. Stepping up to the mic throughout the day will be Dallas Fed President Robert Kaplan, Cleveland Fed President Loretta Mester, and Fed Governor Jerome Powell. American Eagle Outfitters (AEO), Box Inc (BOX), Guess? (GES), and La-Z-Boy (LZB), will reveal their quarterly earnings.  

Buzz Stocks Nov 30

Overseas Trading

Asian stocks were mostly higher, as crude futures rebounded ahead of today's highly anticipated OPEC meeting. Hong Kong's Hang Seng rose 0.2%, while Japan's Nikkei finished up 0.01% amid a cooling yen. Elsewhere, the South Korean Kospi added 0.3%, as shares of Samsung Electronics closed at a record high after the company unveiled a round of shareholder-friendly initiatives. On the flip side, China's Shanghai Composite dropped 1%, as the yuan climbed against the U.S. dollar and steel and iron-ore futures fell.

European stocks are higher at midday, as crude oil prices surge ahead of the OPEC meeting, and data showed consumer prices in the eurozone rose 0.6% year-over-year in November -- reaching their highest point since April 2014. At last check, London's FTSE 100 is up 0.8%, the French CAC 40 has added 0.6%, and Germany's DAX is 0.2% higher.

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