Dow Jones Industrial Average Futures Wobble Amid Earnings Rush

Now Is the Time for a Volatility Hedge

Jan 24, 2017 at 9:10 AM
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Dow Jones Industrial Average (DJIA) futures are modestly higher, as Wall Street digests a raft of earnings reports. Among the Dow stocks in focus are 3M Co (NYSE:MMM), DuPont (NYSE:DD), and Travelers Companies Inc (NYSE:TRV), which each topped per-share expectations. Traders continue to keep a steady eye fixed on the White House, too, amid news that President Donald Trump has resigned from over 400 positions, and put his sons in charge of the Trump Organization.

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

dow futures jan 24

Futures on the Dow Jones Industrial Average (DJIA) are only about 3 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 813,314 call contracts traded on Monday, compared to 584,599 put contracts. The resultant single-session equity put/call ratio rose to 0.72, while the 21-day moving average stayed at 0.66.
  2. Verizon Communications Inc. (NYSE:VZ) shares are down 3.6% pre-market, after the telecom firm's quarterly earnings came up short of the Street's consensus estimate. In addition, VZ added 591,000 retail postpaid subscribers, well below the expected 726,000. This could represent the start of a tough year, as it's a bad stock to own in the first year of a presidential cycle, historically speaking.
  3. Fellow Dow stock Johnson & Johnson (NYSE:JNJ) is 1.7% lower ahead of the open, following the company's first sales miss in four quarters. However, JNJ's adjusted per-share earnings of $1.58 was 2 cents above the consensus estimate. Plus, the healthcare firm is exploring strategic options for its diabetes care unit.
  4. Alibaba Group Holding Ltd (NYSE:BABA) is poised to pop almost 4% at the open -- to the delight of bullish BABA options traders -- as the Chinese e-tail giant had a standout showing in the earnings confessional. Not only did fiscal third-quarter revenue jump 54% to top expectations, but the firm also boosted its 2017 full-year revenue guidance.
  5. Today brings the Markit purchasing managers manufacturing index (PMI) and existing home sales. The earnings docket will feature AK Steel (AKS), Alcoa (AA), Capital One (COF), Corning (GLW), Cree (CREE), Discover Financial Services (DFS), D.R. Horton (DHI), Fifth Third (FITB), Intuitive Surgical (ISRG), Kimberly-Clark (KMB), Lockheed Martin (LMT), Navient (NAVI), Seagate Technology (STX), Steel Dynamics (STLD), and Texas Instruments (TXN)

Buzz Stocks Jan 24

Overseas Trading

Stocks in Asia saw mixed results today, with protectionist rhetoric from President Trump putting pressure on major exporters across the region. In China, the Shanghai Composite rose 0.2%, as did Hong Kong's Hang Seng, with traders considering Trump's decision to officially pull the U.S. from the Trans-Pacific Partnership trade deal. In Japan, though, the Nikkei shed 0.6%, led lower by a poor day from financial stocks and a continued sell-off in air bag manufacturer Takata Corp. South Korea's Kospi closed fractionally lower, despite well-received earnings results from Samsung Electronics.

Turning to Europe, major stock markets are higher at midday, as traders digest the latest "Brexit" development. Specifically, Britain's Supreme Court ruled the government will need parliament's approval to begin negotiations for its separation from the European Union. Meanwhile, shares of BT Group PLC are suffering huge losses after the telecom firm announced a bigger-than-expected $661 million write-down to cover the cost related to an Italian accounting scandal. On the economic front, the IHS Markit purchasing managers index (PMI) for the eurozone dipped in January, but remained in expansion territory. Against this backdrop, London's FTSE 100 is up 0.2%, as is Germany's DAX, while the French CAC 40 was last seen a smidge above breakeven. 

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