The SPX and COMP could hit new highs this morning amid a raft of earnings reports
Dow Jones Industrial Average (DJIA) futures are trading solidly higher -- putting the 20,000 level back in play -- as stocks react to another round of
earnings reports. Most notably, Dow component Boeing Co (NYSE:BA) topped quarterly expectations, while fellow blue chip United Technologies Corporation's (NYSE:UTX) profit was in line with forecasts. Turning to the other major indexes, the
S&P 500 Index (SPX) and
Nasdaq Composite (COMP) could each make another run at record highs this morning. Meanwhile, Wall Street is keeping close tabs on
policy changes under President Donald Trump, who is expected to issue executive actions on immigration and border security today.
Continue reading for more on today's market, including:
- Schaeffer's Senior Quantitative Analyst Rocky White explains why traders shouldn't ignore the buy signals on these 20 stocks.
- How Trump triggered gains on a pair of auto stocks.
- Options players are losing faith as this drugmaker drops to lower lows.
- Plus, Cisco's big acquisition, Freeport-McMoRan swings to a profit, and Wall Street cheers Texas Instruments.
Futures on the Dow Jones Industrial Average (DJIA) are more than 100 points above fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 920,828 call contracts traded on Tuesday, compared to 602,018 put contracts. The resultant single-session equity put/call ratio dropped to 0.65, while the 21-day moving average held at 0.66.
- Cisco Systems, Inc. (NASDAQ:CSCO) said it will acquire software firm AppDynamics for roughly $3.7 billion. The move comes one day before AppDynamics was planning to price its initial public offering (IPO).
- Freeport-McMoRan Inc (NYSE:FCX) reported weaker-than-expected fourth-quarter earnings, sending the shares down 3.3% ahead of the open -- potentially dashing the hopes of bullish options traders. However, the miner's $292 million quarterly profit represents a dramatic change of pace, relative to a year-ago loss of roughly $4.1 billion.
- Texas Instruments Incorporation (NASDAQ:TXN) is feeling the love on Wall Street, with positive analyst attention pouring in after the semiconductor specialist's strong earnings showing. More than a dozen brokerage firms have raised their price targets on TXN, which could help boost the shares to a new multi-year high.
- The regularly scheduled update on crude inventories is the only item on the economic calendar. Stepping up to the earnings confessional will be AT&T (T), Abbott Laboratories (ABT), Briggs & Stratton (BGG), Citrix Systems (CTXS), eBay (EBAY), F5 Networks (FFIV), Hess (HES), Lam Research (LRCX), Las Vegas Sands (LVS), McCormick (MKC), McKesson (MCK), Norfolk Southern (NSC), Novartis AG (NVS), QUALCOMM (QCOM), Vertex Pharmaceuticals (VRTX), and Western Digital (WDC).
Overseas Trading
Stocks in Asia managed solid gains, taking their cue from a strong performance in U.S. markets. Also helping shares in the region was upbeat economic data, with exports in Japan rising in December on a year-over-year basis -- the first such increase in more than a year. As a result, the Nikkei jumped 1.4%. South Korea's Kospi also benefited from well-received economic data, edging up 0.1%, following a better-than-expected fourth-quarter gross domestic product (GDP) reading. Rounding out the region, Hong Kong's Hang Seng delivered a 0.4% gain, and the Shanghai Composite closed 0.2% higher.
European indexes are also on the rise, with major banking stocks leading the charge higher thanks to strong earnings results from Banco Santander. Among the indexes, the German DAX was up 1.5% at last check, shaking off a gauge for business confidence that missed forecasts last month. Meanwhile, a business sentiment reading in France came in flat for January, but the CAC 40 is still 1% higher. In London, the FTSE 100 is up 0.4%.
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