Dow Jones Industrial Average Futures Lower After Jobs Data

This Signal Could Point to New Highs for Amazon

Dec 2, 2016 at 9:16 AM
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Dow Jones Industrial Average (DJIA) futures are signaling a slightly lower start to the day, as stocks react to the latest nonfarm payrolls report. While the unemployment rate fell to a nine-year low of 4.6%, the U.S. added 178,000 jobs in November -- fewer than expected. The Dow notched yet another all-time high yesterday, but could give up its weekly gains for the first week-over-week loss since before the election. Elsewhere, investors are looking ahead to speeches by Fed officials Daniel Tarullo and Lael Brainard for hints about the outcome of this month's Fed meeting, which is expected to result in an interest rate hike.

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

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Futures on the Dow Jones Industrial Average (DJIA) are about 2 points below fair value.

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 927,413 call contracts traded on Thursday, compared to 616,365 put contracts. The resultant single-session equity put/call ratio rose to 0.66, while the 21-day moving average dropped to 0.64.
  2. Starbucks Corporation (NASDAQ:SBUX) is set to open 3% lower, after Howard Schultz announced he will step down from his position as CEO in April, tapping current COO Kevin Johnson as his replacement. SBUX shares have been in recovery mode since hitting multi-year lows in early November, and will likely breach recent support at their 10-day moving average today. 
  3. Johnson & Johnson (NYSE:JNJ) is down 0.6% in electronic trading, after getting hit with a $1 billion fine for failing to warn consumers about faulty hip implants. This verdict comes just days after a buyout offer rejection by Swiss biotech Actelion Ltd.
  4. Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) is poised to pop 6.1% at the open, after the beauty retailer reported stronger-than-expected earnings and upwardly revised its full-year forecast. The reaction is likely to the delight of recent option buyers.
  5. The week will wrap up with a speech from Fed Governors Daniel Tarullo and Lael Brainard. Rounding out the week's earnings releases is Big Lots (BIG).

Buzz Stocks Dec 2

Overseas Trading

 Asian stocks took a spill, as traders took a cautious approach ahead of the U.S. jobs report and Sunday's constitutional referendum in Italy -- triggering widespread speculation that the so-called "Trump trade" is losing steam. A stronger yen weighed on Japan's Nikkei, which pulled back from Thursday's year-to-date high to finish 0.5% lower. South Korea's Kospi, meanwhile, lost 0.7%, as third-quarter gross domestic product (GDP) data came up shy of estimates. Things were even worse in China, where the Shanghai Composite dove 0.9%, while Hong Kong's Hang Seng plunged 1.4%, pressured by a selloff in shares of internet issue Tencent and a sector-wide drop in casino stocks.

Concern over Italy's referendum is taking a toll on European bourses, too, as are cooling crude oil prices. France's CAC 40 is down 1.3%, with losses exacerbated by news that President Francois Hollande will not pursue a second term. Elsewhere, London's FTSE 100 and the German DAX have surrendered 0.8% and 1%, respectively.

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