Dow Jones Industrial Average Futures Tread Water Amid Trump Anxiety

How Shorts, Trump, and Taxes Are Setting the Tone for 2017

Jan 10, 2017 at 9:12 AM
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Dow Jones Industrial Average (DJIA) futures are only modestly higher, as stocks play "wait and see" ahead of tomorrow's news conference with President-elect Donald Trump. Likewise, Nasdaq Composite (COMP) futures are slightly higher, as the tech-heavy index tries to build on its best start to a year since 2006 and notch another record high. While the day is light on earnings and economic data, the NFIB small business optimism index did jump to 105.8 -- well above expectations, and its highest level since 2004.

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

dow futures jan 10

Futures on the Dow Jones Industrial Average (DJIA) are 3.6 points above fair value.

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 674,531 call contracts traded on Monday, compared to 416,135 put contracts. The resultant single-session equity put/call ratio fell to 0.62, while the 21-day moving average remained at 0.63.
  2. Yahoo! Inc. (NASDAQ:YHOO) CEO Marissa Mayer will resign from the company's board of directors once its deal with Verizon Communications Inc. (NYSE:VZ) is finalized. Plus, YHOO will change its name to "Altaba" -- reportedly a combination of the words "alternative" and "Alibaba."
  3. Cybersecurity firm Barracuda Networks Inc (NYSE:CUDA) reported better-than-expected quarterly earnings and sales. As a result, the stock is poised to jump more than 8% at the open -- bolstered by bullish notes at Morgan Stanley, J.P. Morgan Securities, and D.A. Davidson -- on track to extend its historical post-earnings hot streak.
  4. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) announced it will sell its Dendreon cancer business to China's Sanpower Group, as well as three skincare brands to L'Oreal. The drugmaker will make more $2 billion on the sale, which it will apply to its $30 billion debt. VRX shares are up 12.3% pre-market on the news, a potential respite for the technical train wreck.
  5. Today brings the Job Openings and Labor Turnover Survey (JOLTS) and wholesale inventories report. The earnings docket is relatively empty.

Buzz Stocks Jan 10

Overseas Trading

Stocks throughout Asia closed mostly in the red today. Hong Kong's Hang Seng managed to rise 0.8%, but China's Shanghai Composite dropped 0.3%, after the consumer price index rose less than expected in December, although producer prices accelerated by their fastest pace in more than five years. In Japan, the yen strengthened against the U.S. dollar -- weighing on exporters, and sending the Nikkei down 0.8%. Also, automaker Toyota was back in the spotlight, after the company announced plans to invest $10 billion in the U.S. On a similar note, South Korean electronics giants LG and Samsung Electronics are reportedly set to reveal U.S. investment plans, as well. Still, the Kospi closed down 0.2%.

In Europe, stocks are gaining yet again, with London's FTSE 100 eyeing a ninth consecutive record high -- the longest such streak to date. Specifically, the index was up 0.5% at last check, as the pound continues to weaken against the U.S. dollar. Leading the way are grocery stocks, thanks to reports of strong holiday sales, while commodity names also outperformed. Elsewhere, France's CAC 40 is 0.1% higher, and Germany's DAX is up 0.2%, as an upbeat sales report from Volkswagen lifts auto stocks. 

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