Dow Jones Industrial Average Futures Rise; All Eyes on 20,000

Citron: This 'Next Biotech Blowup' Could Drop 90%

Dec 16, 2016 at 9:11 AM
facebook twitter linkedin

Dow Jones Industrial Average (DJIA) futures are higher, as quadruple-witching Friday kicks off with the Dow on track for a sixth straight weekly win and eyes on the key 20,000 level. Stocks continue to react to Wednesday's Fed rate hike and forecast for 2017, and are shrugging off a steeper-than-expected drop in November housing starts.

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


Futures on the Dow Jones Industrial Average (DJIA) are nearly 47 points above fair value.

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 893,624 call contracts traded on Thursday, compared to 527,194 put contracts. The resultant single-session equity put/call ratio rose to 0.59, while the 21-day moving average remained at 0.59.
  2. Oracle Corporation (NYSE:ORCL) is set to drop 2.4% at the open -- likely to some cheering from option bears -- after the company delivered a mixed earnings report, with revenue coming in below expectations. The software stock also received a round of mixed analyst attention, with Wedbush and UBS issuing price-target hikes to $42 and $45, while BMO and Stifel trimmed their target prices to $45 and $44, respectively.
  3. Agios Pharmaceuticals Inc (NASDAQ:AGIO) is down 17.8% in electronic trading, after announcing it had halted development on one of its blood disorder drugs, due to safety concerns. As a result, Janney cut its fair value target to $44 from $51.
  4. Jabil Circuit, Inc. (NYSE:JBL) is poised to pop 9.1% at the bell, after the Apple Inc. (NASDAQ:AAPL) supplier delivered stronger-than-expected earnings, along with an upbeat fiscal second-quarter forecast. JBL has also received no fewer than four price-target hikes, including a hike to $28 from $27 by UBS. A number of short sellers could find themselves increasingly underwater as JBL jumps higher.
  5. The week wraps up today with a speech from Richmond Fed President Jeffrey Lacker. As for economic data, November housing starts and the Baker-Hughes rig count will be released. There are no major earnings reports slated for release.

Buzz Stocks Dec 15

Overseas Trading

A wild day in the currency markets mostly supported stocks in Asia, even as gold miners sold off. Amid a rising dollar, the yuan reached its lowest level in over eight years, helping the Shanghai Composite to a 0.2% gain. Meanwhile, a weaker yen boosted Japan's Nikkei 0.7% to fresh annual highs and a ninth straight win, as financial stocks bound higher. Rounding things out, South Korea's Kospi tacked on 0.3% despite a bird flu warning, while Hong Kong's Hang Seng sat out the positive session, slipping 0.2%.

European markets are mostly higher, with sharp gains among pharmaceutical stocks offsetting a down day for mining and bank shares. In particular, recently spurned Actelion is booming after Bloomberg reported the drugmaker is in advanced talks with Sanofi about a potential acquisition. Drilling deeper, London's FTSE 100 is up 0.2%, the German DAX has added 0.3%, and France's CAC 40 is 0.4% higher.

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners