Dow Jones Industrial Average Futures Hint at a Breather

2 Auto Stocks That Could Speed Higher

Jan 5, 2017 at 9:10 AM
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After two days of gains to kick off 2017, the Dow Jones Industrial Average (DJIA) could take a breather in its quest for 20,000, with futures pointed modestly lower. In pre-market trading, stocks are weighing a disappointing ADP employment report against a sharper-than-forecast plunge in weekly jobless claims -- which neared 43-year lows. Traders are also gearing up for tomorrow, when the all-important nonfarm payrolls report will be released, and a trio of Fed officials will speak, perhaps shedding light on yesterday's hawkish meeting minutes.

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

dow futures jan 5

Futures on the Dow Jones Industrial Average (DJIA) are roughly 33 points below fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 687,394 call contracts traded on Wednesday, compared to 439,978 put contracts. The resultant single-session equity put/call ratio fell to 0.64, while the 21-day moving average held at 0.62.
  2. Amazon.com, Inc. (NASDAQ:AMZN), Forever 21, and other retailers are competing to buy bankrupt American Apparel, according to inside sources. Any potential offers would need to exceed Gildan Activewear Inc's (NYSE:GIL) $66 million stalking horse bid from November.
  3. Macy's Inc (NYSE:M) stock is set to drop over 10% at the open, after the department store chain announced lackluster holiday sales, with same-store sales slipping 2.1% from November to December. Also, the company announced it will slash roughly 10,000 positions and shutter nearly 70 locations, and lowered its full-year profit forecast. Analysts have doubled-down on their negativity, with at least five lowering their price targets on M.
  4. Walgreens Boots Alliance Inc (NASDAQ:WBA) reported slightly better-than-expected quarterly earnings, but fell short of the consensus revenue estimate. The pharmacy operator -- which is in the process of buying Rite Aid Corporation (NYSE:RAD) -- lifted the lower end of its full-year earnings range, as well.
  5. Today will bring the ISM's non-manufacturing index and the weekly crude inventories report -- delayed by a day due to Monday's holiday. Constellation Brands (STZ) and Monsanto (MON) will step into the earnings spotlight.

Buzz Stocks Jan 5

Overseas Trading

It was a mixed session for Asian stocks, as traders considered the latest round of economic data. Most notably, Hong Kong's purchasing managers' index (PMI) for December came in at a nearly two-year high, sending the Hang Seng up 1.5%. China's Shanghai Composite also closed higher, adding 0.2%, after the Markit/Caixin services PMI for December jumped to its highest level since July 2015. On the other hand, South Korea's Kospi dipped 0.2%, while the Nikkei dropped 0.4% in Japan, as the yen strengthened against the dollar.

Likewise, major stock indexes in Europe are mixed at midday. Mining stocks are among the top gainers, following the upbeat data out of Asia, while homebuilders are surging thanks to a strong earnings report from U.K.-based Persimmon. Traders are also digesting a better-than-expected PMI for the U.K.'s services sector for December. But at last check, London's FTSE is only sporting a fractional gain, while France's CAC 40 and Germany's DAX are each down 0.2%. 

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