Dow Jones Industrial Average Futures Higher; 20,000 In the Crosshairs

2 Reasons to Be Cautious Right Now

Dec 28, 2016 at 9:09 AM
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Dow Jones Industrial Average (DJIA) futures are pointed higher, as traders watch to see if the Dow will make another run at the 20,000 level. Tech stocks look ready to lead the Nasdaq Composite (COMP) to higher record highs, including semiconductor stocks Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA). In the middle of the relatively quiet holiday-shortened week, mortgage application numbers and pending home sales data are the main economic reports due out today.

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

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Futures on the Dow Jones Industrial Average (DJIA) are about 23 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 530,659 call contracts traded on Tuesday, compared to 326,986 put contracts. The resultant single-session equity put/call ratio fell to 0.62, while the 21-day moving average dropped to 0.60.
  2. Amazon.com, Inc. (NASDAQ:AMZN) is poised to pop 0.4% at the open, after reporting its best holiday season ever, dominating nearly 37% of the online market. In addition, Evercore ISI analyst Ken Sena called AMZN his top internet stock pick for 2017. 
  3. GNC Holdings Inc (NYSE:GNC) is making headlines this morning, with the struggling health retailer closing all 4,400 U.S. stores today to overhaul its pricing system. This shutdown comes just as the retail season is winding down and many retailers are making a last-ditch effort to lure consumers for end-of-the-year sales.
  4. Fred's, Inc. (NASDAQ:FRED) is ready to give up 1.4% at the bell, adding to yesterday's "poison pill" inspired losses, as the pharmacy chain reportedly comes under scrutiny by federal regulators, who have concerns Fred's is ill-equipped to handle its planned purchase of Rite Aid Corporation (NYSE:RAD) stores.
  5. It will be mostly quiet on the economic docket today.

Buzz Stocks Dec 28

Overseas Trading

Asian stocks ended the session mixed. The day's major winner was Hong Kong's Hang Seng, which bounced back from early losses to finish on an 0.8% lead. Japan's Nikkei settled just south of the flatline, pressured by a more than 20% drop in Toshiba shares, due to subsidiary Westinghouse's potentially heavy impairment loss on an M&A deal gone south. Stocks also reacted to mixed data, including better-than-expected November retail sales and industrial production growth that came up shy of estimates. Meanwhile, China's Shanghai Composite dropped 0.4%, and South Korea's Kospi shed 0.9%, after yet another public official was arrested.

European markets are on both sides of breakeven. London's FTSE 100 is leading the way higher, up 0.5% on the back of mining shares. On the losing side of the ledger -- albeit by a slim margin -- are the German DAX and French CAC 40, down less than 0.1% apiece.

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