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Dow Jones Industrial Average Futures Signal a Strong Start to 2017

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Jan 3, 2017 at 9:04 AM
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Dow Jones Industrial Average (DJIA) futures are signaling a strong start to 2017, up triple digits. This follows a soft ending to 2016 for stocks, highlighted by the Dow's inability to reach the 20,000 millennium level. The new year is also proving a boon to oil prices, with February-dated crude futures last seen 2.4% higher at $55 per barrel -- and fresh off an 18-month high. Fueling oil's fire, the deal between members and non-members of the Organization of the Petroleum Exporting Countries (OPEC) to reduce crude output has seemingly gotten off on the right foot, with Kuwait and Oman fulfilling their commitments.

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

Dow futures jan 3

Futures on the Dow Jones Industrial Average (DJIA) are more than 152 points above fair value.

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 592,557 call contracts traded on Friday, compared to 449,912 put contracts. The resultant single-session equity put/call ratio jumped to 0.76, while the 21-day moving average edged up to 0.62.
  2. Another tweet by President-elect Donald Trump is making waves on Wall Street. This time, Trump took aim at General Motors Company (NYSE:GM), threatening to hit the automaker with a "big border tax" if it sends the "Mexican made model of Chevy Cruze to U.S. car dealers-tax free [sic] across border."
  3. Indonesia cut its business partnerships with JPMorgan Chase & Co. (NYSE:JPM), following the bank's downwardly revised assessment of the nation's economy to "underweight" from "overweight." One top official said JPM's report was not "accurate or credible." Nevertheless, the financial shares are 1.1% higher ahead of the bell, thanks to upbeat analyst attention, suggesting they could make a run at all-time highs today.
  4. Twitter Inc's (NYSE:TWTR) executive exodus is continuing, with Kathy Chen, Managing Director for China, announcing her departure. Her exit comes only eight months after she joined the social media firm.
  5. The Markit purchasing managers manufacturing index (PMI) and the Institute for Supply Management's (ISM) manufacturing index will be released today, as will data on construction spending. No earnings are on tap.

Buzz Stocks Jan 3

Overseas Trading

Stocks in Asia enjoyed a strong start to the new year, thanks mostly to better-than-expected manufacturing data out of China. Specifically, China's Caixin manufacturing purchasing managers’ index (PMI) rose to 51.9 in December -- the best reading in over three years. This helped investors shrug off concerns related to new rules meant to slow capital outflows, introduced over the weekend by Chinese regulators. The Shanghai Composite climbed 1.1%, and stocks elsewhere in the region followed suit, with Hong Kong’s Hang Seng rising 0.7%, and South Korea's Kospi adding 0.9%. Markets in Japan were closed for a public holiday.

European stocks are posting solid gains in response to upbeat manufacturing data, with Britain's PMI jumping to its highest reading in over two years. This, on top of the positive economic data out of China, is boosting mining shares in the U.K., while bank stocks are also outperforming across the region. France's CAC 40 and London's FTSE 100 were leading the way at last check, each adding 0.6%, while Germany's DAX was up 0.2%. 

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