Dow Jones Industrial Average Futures Slip With Oil

The Signal That Called Black Monday and the Financial Crisis

by Celeste Taylor

Published on Dec 7, 2016 at 9:07 AM

Dow Jones Industrial Average (DJIA) futures are cautiously lower after notching yet another record high yesterday. Stocks are slipping with oil prices, amid doubts that the expected production cut from the Organization of the Petroleum Exporting Countries (OPEC) will be enough to curb oversupply. January-dated crude futures are currently down 1.2% at $50.30 per barrel. Traders are also looking ahead to tomorrow's European Central Bank (ECB) meeting, as well as next week's Federal Reserve summit, which is expected to result in higher interest rates.

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

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Futures on the Dow Jones Industrial Average (DJIA) are about 15 points below fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 677,211 call contracts traded on Tuesday, compared to 393,141 put contracts. The resultant single-session equity put/call ratio fell to 0.58, while the 21-day moving average dropped to 0.60.
  2. Boeing Co (NYSE:BA) is fractionally lower in electronic trading, even after President-elect Trump attempted to soften his previous comments on a government contract with the aerospace company. Specifically, Trump said his administration will attempt to "work it out" in negotiations with BA.
  3. SunPower Corporation (NASDAQ:SPWR)is 2.3% higher in pre-market trading, after the company unveiled plans to cut about 25% of its workforce and shutter one plant. SPWR shares are down more than 76% in 2016, hitting three-year lows in November.
  4. Starbucks Corporation (NASDAQ:SBUX)is set to drop 0.6% at the open, after presenting a five-year plan for global growth this morning. The coffee chain said it projects 10% revenue growth by 2021, and plans to open approximately 12,000 new stores around the world. SBUX has rebounded from its sharp fall in November, but still remains down 4.3% so far this year.
  5. The Job Openings and Labor Turnover Survey (JOLTS) will be released today, followed by the regularly scheduled update on domestic crude inventories. Costco (COST) highlights the day's earnings slate, while H&R Block (HRB), Lululemon Athletica (LULU), Ollie's Bargain Outlet (OLLI), and Vera Bradley (VRA) will also report. 

Buzz Stocks Dec 7

Overseas Trading

Asian stocks cruised higher, with financial shares around the region rallying on reports Italy was preparing a bailout of embattled Banca Monte dei Paschi di Siena. Japan's Nikkei paced the pack, adding over 0.7% on a weaker yen -- and bolstered by a jump in SoftBank stock to annual highs, following the company's agreement with U.S. President-elect Donald Trump to create 50,000 jobs stateside. China's Shanghai Composite tacked on 0.7%, despite the government opening probes to "contain possible financial risks brought by massive stake buyouts by heavyweight insurance player." Rounding things out, Hong Kong's Hang Seng advanced nearly 0.6%, while South Korea's Kospi edged 0.1% higher, but was generally held back by reports Finance Minister Yoo Il-ho has concerns about softening consumer sentiment.

European markets are muscling higher, as traders anticipate an extension of quantitative easing measures at tomorrow's ECB policy meeting. And, as in Asia, the Monte dei Paschi speculation is fanning the proverbial flame of bank stocks. At last check, London's FTSE 100 is on track for its best session in a month, up 1.3% as a surprise contraction in industrial output weighs on the pound, and commodity stocks surge. France's CAC 40 and the German DAX are sharply higher, as well, surging 0.8% and 1.5%, respectively.

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