Dow Jones Industrial Average Futures Rise as Fed Meeting Kicks Off

The SPY Level That Could Finally Pause the Trump Rally

Dec 13, 2016 at 9:07 AM
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Dow Jones Industrial Average (DJIA) futures are pointed higher, as the Federal Open Market Committee (FOMC) meeting gets underway -- with the first interest rate hike of 2016 expected to be announced tomorrow afternoon. As a result, the Dow could touch another record high out of the gate, and notch a seventh consecutive daily gain. Meanwhile, import prices suffered their largest drop in nine months last month, but less than expected.

On the commodity front, crude oil is modestly higher -- with January-dated futures up 0.3% at $52.97 per barrel -- after the International Energy Agency (IEA) predicted a bigger-than-expected increase in global oil demand through 2017. However, the IEA warned the next few weeks will be "crucial" for determining the impact of the production cut from the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members.

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

Dow futures Dec 13

Futures on the Dow Jones Industrial Average (DJIA) are nearly 69 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 803,449 call contracts traded on Monday, compared to 455,794 put contracts. The resultant single-session equity put/call ratio rose to 0.57, while the 21-day moving average remained at 0.59.
  2. A day after this trio of biotechs made bold moves, drugmaker Proteon Therapeutics Inc (NASDAQ:PRTO) is poised to open at a record low after the company's kidney disease drug failed in a late-stage study. After landing yesterday at $9.90, the stock is pointed about 70% lower pre-market.
  3. As expected, President-elect Donald Trump has selected Exxon Mobil Corporation (NYSE:XOM) CEO Rex Tillerson as his secretary of state. Shares of the oil major have been red-hot as crude rallies, yesterday finishing at $90.98 -- their highest perch since late July.
  4. Recent Trump target Boeing Co (NYSE:BA) announced it will reduce production on its 777 jetliner by 40% starting next August, citing a drop in sales. Nevertheless, BA stock is up 1.5% ahead of the open, after the plane manufacturer announced a 30% dividend hike and $14 billion in share buybacks.
  5. Today brings the start of the much-anticipated FOMC meeting.

Buzz Stocks Dec 13

Overseas Trading

Stocks in Asia finished higher ahead of today's FOMC meeting in the U.S. While China's Shanghai Composite spent much of the session in the red following Monday's sell-off, the index changed directions to end nearly 0.1% higher on a round of mostly upbeat economic data. Specifically, China saw a larger-than-expected rise in retail sales and factory output for November, as well as an uptick in private investment growth. Likewise, Hong Kong's Hang Seng closed less than 0.1% higher, with the property sector slumping on reports the country's central bank will issue a new 15% tax on residential properties. Elsewhere, South Korea's Kospi added 0.4%, while Japan's Nikkei ended a choppy session up 0.5% amid a cooling yen.

Europe benchmarks are in the green, as traders mull over China's latest economic reports and banking stocks get a boost from Italian bank UniCredit SpA's freshly unveiled restructuring program. In the U.K., inflation rose at its highest rate in 25 months in November, boosted by rising prices for gasoline and clothing. At last check, London's FTSE 100 and Germany's DAX have added 0.6% apiece, and France's CAC 40 has tacked on 0.7%.

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