Trump, 'Brexit' Weigh On Dow Jones Industrial Average Futures

Will Donald Trump Break The VIX?

Jan 17, 2017 at 9:17 AM
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Dow Jones Industrial Average (DJIA) futures are tracking European stocks lower --  and at one point were down triple digits -- as "Brexit" jitters emerge once more. This, after British Prime Minister Theresa May said parliament will vote on the final deal between the U.K. and the European Union (EU), and clarified that "remaining in the single market" was a nonstarter. Moreover, President-elect Donald Trump sent shockwaves throughout Wall Street, saying the dollar is "too strong" and is "killing us." Elsewhere, traders are responding to another round of earnings, including a strong showing from blue chip UnitedHealth Group Inc (NYSE:UNH), while New York Fed President William Dudley said he's optimistic about U.S. economic growth.

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

dow futures jan 17

Futures on the Dow Jones Industrial Average (DJIA) are nearly 19 points below fair value.

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 818,442 call contracts traded on Friday, compared to 518,086 put contracts. The resultant single-session equity put/call ratio fell to 0.63, while the 21-day moving average stayed at 0.65.
  2. Following in the bullish footsteps of its sector peers, Morgan Stanley (NYSE:MS) is 0.7% higher pre-market, after the bank reported better-than-expected quarterly earnings and sales. In fact, boosted by a surge in post-election trading, MS' fourth-quarter profit reached its highest level since the financial crisis.
  3. UNH posted quarterly earnings above the Street's consensus estimate, bolstered by its Optum unit -- which last week announced a $2.3 billion acquisition. Oppenheimer has responded to the news already, raising its price target to $186 from $171 -- in record-high territory.
  4. Tiffany & Co. (NYSE:TIF) is bracing for a 7.2% drop out of the gate, due to a steeper-than-expected drop in holiday same-store sales. The company also warned that it does "not anticipate any significant improvement in 2017 to macroeconomic challenges" it faced in 2016. Goldman Sachs, meanwhile, trimmed its price target on TIF to $74 from $75.
  5. Today brings the release of the Empire State manufacturing index, as well as speeches from Fed Governor Lael Brainard and San Francisco Fed President John Williams. CSX Corporation (CSX) and United Continental (UAL) are scheduled to report earnings.

Buzz Stocks Jan 17

Overseas Trading

Asian stocks closed mixed today, with traders eyeing a speech from U.K. Prime Minister Theresa May and Friday's inauguration of U.S. President-elect Donald Trump. Starting in Japan, the Nikkei fell 1.5%, dragged down by a strengthening yen. Meanwhile, Hong Kong's Hang Seng gained 0.5% and China's Shanghai Composite added 0.2%. In South Korea, the Kospi closed with a 0.4% win.

European traders are also considering May's speech, with stocks edging lower at midday. Specifically, she confirmed that Britain will be leaving Europe's single market -- known as a "hard Brexit" -- and that parliament will vote on the final "Brexit" deal. In the meantime, the pound is rallying versus the dollar, while U.K inflation rose to 1.6% in December, the highest rate since July 2014. In other news, Rolls Royce is making a huge move higher at midday after the company announced plans to settle a corruption investigation, and British American Tobacco said it plans to buy the roughly 58% of Reynolds American, Inc. (NYSE:RAI) it does not already own for almost $50 billion. At last check, London's FTSE 100 was down 0.9%, the French CAC 40 was 0.2% lower, and Germany's DAX had given back 0.1%. 

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