Dow Jones Industrial Average Futures Rise With Oil

Why Options Traders Targeted These 2 'FANG' Stocks

Dec 1, 2016 at 9:21 AM
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Dow Jones Industrial Average (DJIA) futures are signaling a higher start, set to track oil's extended gains. With January-dated crude futures trading up 3% at $50.92 per barrel, the Dow was also trading above fair value -- and could take aim at another all-time peak. Traders are also digesting a bigger-than-forecast rise in jobless claims, with initial claims arriving at 268,000, more than the expected 253,000. Elsewhere, stocks are also reacting to several big retail earnings coming in before the opening bell, while a slew of manufacturing reports are on tap.

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

161201OV1

Futures on the Dow Jones Industrial Average (DJIA) are 22 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 885,783 call contracts traded on Wednesday, compared to 482,739 put contracts. The resultant single-session equity put/call ratio fell to 0.54, while the 21-day moving average dropped to 0.65.
  2. McDonald's Corporation (NYSE:MCD) is set to drop 0.4% at the bell, amid speculation the restaurant chain is nearing a deal with privately held Carlyle Group and China's Citic Group Corp to sell MCD's China and Hong Kong locations for a total of up to $3 billion. MCD recently gained a foothold atop its year-to-date breakeven mark, despite increased analyst skepticism.
  3. Express, Inc. (NYSE:EXPR) is down 19.7% in electronic trading -- poised to open at a four-year low – after the retailer downwardly revised its current-quarter and full-year outlooks, and offered weak holiday guidance. CEO David Kornberg said the company expects the current competitive retail environment to continue to weigh on EXPR, along with decreased mall traffic.
  4. Dollar General Corp (NYSE:DG) is set to drop 5% at the open, after the company delivered a disappointing earnings report this morning. Unlike sector peer Dollar Tree, Inc. (NASDAQ:DLTR), the discount retailer missed its mark on per-share earnings, as well as same-store sales, amid reductions in food-stamp benefits, as well as lower grocery prices.
  5. A slew of economic data due for release today includes motor vehicle sales, the purchasing managers manufacturing index (PMI), the Institute for Supply Management's (ISM) manufacturing index, and construction spending. Cleveland Fed President Loretta Mester and Dallas Fed President Robert Kaplan are set to speak, as well. Taking turns in the earnings spotlight will be Ambarella (AMBA), Five Below (FIVE), Kroger (KR), Smith & Wesson (SWHC), and Zumiez (ZUMZ).  

Buzz stocks Dec 1

Overseas Trading

Stocks in Asia finished higher, boosted by excitement over OPEC's plan to cut output as well as positive manufacturing data. A rally among energy stocks helped Japan's Nikkei lead the way north -- and notch its loftiest close of 2016 -- with a 1.1% gain, bolstered by a weaker yen. Meanwhile, a pair of better-than-expected manufacturing indexes out of China sparked a 0.7% rise on the mainland's Shanghai Composite, while Hong Kong's Hang Seng tacked on 0.4%. Rounding things out, South Korea's Kospi finished just above the flatline, despite a disappointing consumer price index (CPI) reading.

European markets are struggling despite the global rally in oil, amid uncertainty related to Sunday's constitutional referendum in Italy. Also, the rise in crude oil prices is triggering fears of inflation and decreased consumer spending, weighing on consumer goods shares. Drilling down to the indexes, London's FTSE 100 is worst off, down 1.2%, as traders digest a 4.4% year-over-year jump in home prices. Elsewhere, the German DAX and French CAC 40 are off 0.9% and 0.6%, respectively.

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