Dow Jones Industrial Average Futures Higher After ECB Decision

2 Skyrocketing Copper Stocks With Room to Run

Dec 8, 2016 at 9:07 AM
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Dow Jones Industrial Average (DJIA) futures are pointed higher to start the day, after finishing at an all-time high yesterday. Traders are reacting to the European Central Bank's (ECB) decision to leave interest rates unchanged, and extend its stimulus program for at least another year, though the policymakers will scale back monthly bond purchases starting in April. Stocks are also moving on a drop in weekly U.S. jobless claims -- another sign of an improving employment market ahead of next week's Fed meeting, where it is largely expected interest rates will be increased.

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

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Futures on the Dow Jones Industrial Average (DJIA) are about 9 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 1,080,700 call contracts traded on Wednesday, compared to 500,973 put contracts. The resultant single-session equity put/call ratio fell to 0.46, while the 21-day moving average remained at 0.60.
  2. Lululemon Athletica inc. (NASDAQ:LULU) is set to pop 15.1% at the bell, after delivering earnings ahead of analyst expectations last night. The retailer has been rewarded with no fewer than two upgrades and 11 price-target hikes, including an upgrade to "buy" from "sell" by Evercore ISI, which also raised its price target to $80 from $50. In addition, Wedbush -- which on Monday said LULU investors' "bearish view could be overstated" -- hiked its price target to $81 from $70.
  3. Sears Holding Corp (NASDAQ:SHLD) is down 1% in electronic trading, after delivering a disappointing earnings report this morning. The struggling retailer saw revenue plummet more than 14%, and said there is no guarantee when profitability will return. At yesterday's close, the retailer's shares sat down more than 40% for the year.
  4. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is down 0.5% in pre-market trading -- extending its year-to-date losses -- after Reuters revealed the company was investigating the alleged bribery of state officials in Romania. The internal investigation has been ongoing since an anonymous tipster informed the company in 2015 that state healthcare workers were being paid to prescribe the company's medication.
  5. The rest of the day will be quiet on the data front. The earnings calendar will consist of Broadcom (AVGO)Ciena (CIEN)Finisar (FNSR), and Yingli Green Energy (YGE).

Buzz Stocks Dec 8

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Stocks across Asia followed the bullish lead of U.S. markets. Japan's Nikkei stood out, jumping 1.5% to a 2016 high, despite a disappointing read on third-quarter gross domestic product (GDP). South Korea's Kospi was even hotter, soaring 2%, while Hong Kong's Hang Seng finished 0.3% higher. However, China's Shanghai Composite sat out the rally, dipping 0.2% -- as concerns over the government's scrutiny of potentially speculative stock purchases among insurance firms overshadowed encouraging November trade data.

European markets are trekking higher, after ECB President Mario Draghi announced an extension to the bank's stimulus program -- but with tapering of monthly bond purchases to begin in April 2017. Bank stocks and basic resources are currently among the top-performing sectors, bolstered by the ECB news and China's trade numbers, respectively. Drilling down to the indexes, the German DAX has tacked on 0.7%, while London's FTSE 100 and France's CAC 40 are both up 0.3%.

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