Dow Jones Industrial Average Futures Flop; All Eyes on Draghi, Mnuchin

3 ETFs to Watch Ahead of Trump's Inauguration

Jan 19, 2017 at 9:07 AM
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After four consecutive losses, Dow Jones Industrial Average (DJIA) futures are pointed lower once more, as stocks react to the European Central Bank's (ECB) decision to keep interest rates unchanged. Wall Street is currently keeping a finger on ECB President Mario Draghi's speech, while preparing for the confirmation hearing of Treasury Secretary nominee Steven Mnuchin, as well as post-close remarks from Fed Chair Janet Yellen. On the data front, U.S. jobless claims unexpectedly fell -- sending the monthly average to its lowest level since 1973 -- while December housing starts rose more than expected.

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

dow futures jan 19

Futures on the Dow Jones Industrial Average (DJIA) are nearly 17 points below fair value.

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 727,069 call contracts traded on Wednesday, compared to 487,307 put contracts. The resultant single-session equity put/call ratio rose to 0.67, while the 21-day moving average remained at 0.66.
  2. Netflix, Inc. (NASDAQ:NFLX) is poised to pop 7.5% at the open to reach a new all-time high, after the online media firm topped expectations in the earnings booth, and offered up encouraging guidance. The upbeat news prompted a raft of bullish brokerage notes.
  3. Panasonic CEO Kazuhiro Tsuga said the company is looking to expand its collaboration with Tesla Motors Inc (NASDAQ:TSLA) beyond batteries. "We are deeply interested in Tesla's self-driving system," Tsuga noted. The headline -- as well as some bullish analyst attention -- has TSLA shares up nearly 4% ahead of the bell.
  4. Alibaba Group Holding Ltd (NYSE:BABA) has agreed to sponsor the Olympic Games through 2028, joining with a dozen other companies as top backers of the global event. International Olympic Committee (IOC) President Thomas Bach called the alliance "ground-breaking" and "innovative," while BABA CEO Jack Ma said his company "can bring a lot of quality to the Olympics with cloud technology."
  5. The economic calendar features the Philadelphia Fed business outlook survey. Additionally, the holiday-delayed weekly crude inventories report will hit the Street, while San Francisco Fed President John Williams is due to speak. Stepping up to the earnings plate will be American Express (AXP), International Business Machines (IBM), Bank of New York Mellon (BK), BB&T (BBT), KeyCorp (KEY), Skyworks Solutions (SWKS), and Union Pacific (UNP).

Buzz Stocks Jan 19

Overseas Trading

Asian stocks closed mixed. A weakening yen helped lift Japan's Nikkei 0.9%, although Toshiba shares sold off dramatically on speculation the company may face larger-than-expected losses from its U.S. nuclear power business -- and could be seeking government support. Chinese shares struggled, however, as caution set in ahead of the Lunar New Year and tomorrow's inauguration of Donald Trump. As such, the Shanghai Composite fell 0.4%, and Hong Kong's Hang Seng dipped 0.2%. Elsewhere, South Korea's Kospi managed to gain 0.1%, after Samsung Electronics got a boost on news an arrest warrant for scion Lee Jae-yong was thrown out.

Stocks in Europe are mostly lower at midday, following the ECB's decision to keep interest rates unchanged, with traders now digesting developments from Draghi's press conference. London's FTSE 100 was last seen down 0.5%, weighed down by a sharp drop in delivery stock Royal Mail PLC, while mining stocks are also underperforming due to a strengthening U.S. dollar. In France, the CAC 40 is down 0.1%, as traders respond to news that aircraft manufacturer Safran SA has agreed to buy Zodiac Aerospace for $9 billion in cash. Elsewhere, Germany's DAX is off 0.1% as well. 

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