Dow Jones Industrial Average Futures Bounce; Bank Earnings, Fed in Focus

History Suggests the 'Trump Rally' Could Have Legs

Jan 18, 2017 at 9:13 AM
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Dow Jones Industrial Average (DJIA) futures are edging higher, with bank earnings and the Fed in focus. Specifically, blue-chip stock Goldman Sachs Group Inc (NYSE:GS) reported a better-than-expected quarterly profit and revenue. Meanwhile, shortly after the central bank's Beige Book is released this afternoon, Fed Chair Janet Yellen is scheduled to speak on the goals of monetary policy. On the data front, the consumer price index (CPI) rose for a fifth straight month, matching expectations. For 2016, inflation rose 2.1% -- the fastest pace in five years.

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

dow futures jan 18

Futures on the Dow Jones Industrial Average (DJIA) are more than 36 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 778,913 call contracts traded on Tuesday, compared to 505,014 put contracts. The resultant single-session equity put/call ratio rose to 0.65, while the 21-day moving average edged up to 0.66.
  2. Citigroup Inc (NYSE:C) had a mixed turn in the earnings confessional, with its fourth-quarter per-share profit beating the consensus forecast, but adjusted revenue falling short. Nonetheless, CEO Michael Corbat expressed optimism about the future, saying, "We had a strong finish to 2016, bringing momentum into this year." C shares are pointed 0.5% lower ahead of the bell.
  3. Target Corporation (NYSE:TGT) is down 3.4% pre-market, after the retailer cut its fourth-quarter outlook for same-store sales and earnings due to a weak holiday performance. This merely echoes a recent trend among brick-and-mortar retailers.
  4. Eli Lilly and Co (NYSE:LLY) announced the purchase of fellow drugmaker CoLucid Pharmaceuticals Inc (NASDAQ:CLCD) for nearly $1 billion. By doing so, LLY will regain control over migraine treatment lasmiditan, which it licensed to CLCD in 2005.
  5. Today, industrial production data is due. Minneapolis Fed President Neel Kashkari will take the mic, as well. On the earnings front, Netflix (NFLX), Charles Schwab (SCHW), Fastenal (FAST), TD Ameritrade (AMTD), and U.S. Bancorp (USB) are set to report.

Buzz Stocks Jan 18

Overseas Trading

Stocks in Asia closed mostly higher, with traders keeping one eye trained on Friday's U.S. presidential inauguration of Donald Trump. Hong Kong's Hang Seng had the best day -- rising 1.1% --  thanks to broad gains from bank stocks. China's Shanghai Composite managed a 0.1% advance, amid reports of tepid growth in home prices for December. In Japan, a weaker yen guided the Nikkei to a 0.4% win, while South Korea's Kospi closed down 0.1%.

Over in Europe, major stock indexes are mixed at the halfway point, as traders dissect the latest round of corporate earnings. Specifically, ASML Holding NV is rallying after the chip equipment manufacturer announced a better-than-expected forecast, while technology stocks across the region are sporting solid gains. Meanwhile, London's FTSE 100 is overcoming the pound's largest single-day advance in eight years -- picking up 0.2%, even as publisher Pearson sinks on a lowered profit outlook. Germany's DAX is also up 0.2%, although Deutsche Bank AG is sinking on news the bank has finalized a settlement with U.S. regulators. The French CAC 40 is underperforming, however, down 0.5%. 

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