Dow Jones Industrial Average Futures Lower; 20K Still in Focus

10 Stocks That Could Move After Nasdaq-100 Rebalancing

Dec 21, 2016 at 9:18 AM
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Dow Jones Industrial Average (DJIA) futures are cautiously lower, a day after the Dow notched a record high and came within 13 points of the key 20,000 level. Ahead of what should be a relatively quiet pre-holiday session, traders are digesting a handful of earnings reports, including an earnings win by blue-chip Nike Inc (NYSE:NKE).

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

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Futures on the Dow Jones Industrial Average (DJIA) are about 12 points below fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 662,001 call contracts traded on Tuesday, compared to 418,773 put contracts. The resultant single-session equity put/call ratio fell to 0.63, while the 21-day moving average remained at 0.59.
  2. NKE is set to pop 2.7% at the open -- a much-needed bump for the lagging blue-chip -- after the retailer delivered an earnings win last night. NKE has been hit with a pair of price-target hikes and a trio of price-target cuts in the hours since earnings, including a hike to $75 from $65 by Jefferies, as well as a cut to $65 from $67 by Telsey Advisory.
  3. FedEx Corporation (NYSE:FDX) is down 2.4% in electronic trading, as a lackluster earnings report weighs on the shipper's shares in the midst of the holiday rush. An increase in ground package volumes boded well for the stock, but margins decreased in light of the additional manpower and new facilities needed to accommodate this volume. FDX has also been hit with a pair of price-target hikes, as well as two price-target cuts.
  4. Finish Line Inc (NASDAQ:FINL)is bracing for a 14.7% drop out of the gate, after the firm confessed to a steeper-than-expected per-share loss and cut its full-year guidance for comparable-store sales. The expected move should be to the delight of short sellers, as short interest represents more than a quarter of FINL's total available float.
  5. Existing home sales and weekly crude inventories data will be released today. On the earnings front, Bed Bath & Beyond (BBBY), Accenture (ACN), Micron Technology (MU), and Red Hat (RHT) will also report.

Buzz Stocks Dec 21

Overseas Trading

Asian stocks settled on both sides of the ledger, despite early tailwinds out of Wall Street. On the plus side, China's Shanghai Composite climbed 1.2%, followed by Hong Kong's Hang Seng, which tacked on 0.4%. On the other hand, despite hitting an intraday annual high on a weaker yen -- which boosted exporters -- Japan's Nikkei lost momentum, ultimately finishing on a 0.3% loss. South Korea's Kospi followed suit, giving back 0.2%.

Meanwhile, European markets are struggling, amid brewing concerns over Italy's banking sector. Specifically, financial firm Monte dei Paschi said it could burn through its cash reserves in four months, fewer than the 11 months previously projected, prompting a 20 billion euro bank bailout. With bank stocks down throughout the region, London's FTSE 100 is on the brink of snapping its four-day winning streak, off 0.1%. Elsewhere, the German DAX and French CAC 40 have surrendered 0.1% and 0.5%, respectively.

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