Dow Jones Industrial Average Futures Signal Down Day for Stocks

Analyst: The Cybersecurity Stock With 300% Upside

Feb 6, 2017 at 9:06 AM
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Dow Jones Industrial Average (DJIA) futures are trading below fair value this morning, after President Donald Trump's executive orders helped fuel a major stock rally on Friday. With no Dow stocks on the earnings slate, and the economic schedule relatively bare, traders may have their eyes on Washington yet again. Specifically, a federal judge on Friday ruled against Trump's immigration order, setting up a likely legal battle, while the impact of the administration's fresh sanctions against Iran are also being considered. Meanwhile, the Patriots' miraculous Super Bowl win could be good news for at least one blue-chip stock. 

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

  • 4 reasons we didn't trade Fifth Third Bancorp (NASDAQ:FITB) options. 
  • Citigroup expects this cybersecurity stock to gain almost 300% in a year. 
  • Options traders are overlooking this compelling internet stock ahead of earnings. 
  • Plus, Hasbro tops estimates, Tyson Foods sizzles, and a departing retail CEO. 

Stock Futures Today

Futures on the Dow Jones Industrial Average (DJIA) are 43.5 points below fair value. 

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 881,636 call contracts traded on Friday, compared to 603,265 put contracts. The resultant single-session equity put/call ratio rose to 0.68, while the 21-day moving average remained at 0.67.
  2. Diverging from the earnings performance of its main rival, toy stock Hasbro, Inc. (NASDAQ:HAS) is set to rally after the company's quarterly report. Both fourth-quarter earnings and revenue bested the Street's forecasts, sending the shares 11.2% higher in electronic trading. The move would put HAS in record-high territory.  
  3. Having already filled the bear gap from its November earnings miss, chicken producer Tyson Foods, Inc. (NYSE:TSN) is set to outperform today after better-than-expected quarterly results. The stock is on pace to open 2.5% higher, a move that would have the shares trading in line with their 200-day moving average. 
  4. Weeks after the company revealed disappointing holiday sales, Tiffany & Co. (NYSE:TIF) CEO Frederic Cumenal is stepping down. Shares of the high-end retailer are now pointed 3.4% lower ahead of the open, with Mizuho downgrading TIF to "neutral" from "buy," while trimming its price target to $74 from $90. As of Friday's close of $80.47, the stock was up roughly 28% year-over-year. 
  5. Philadelphia Fed President Patrick T. Harker will give a speech today. On the earnings front, Fabrinet (FN), Loews (L), SYSCO (SYY), and Twenty-First Century Fox (FOXA) are all due to report earnings today.

Buzz Stocks Feb 6

Overseas Trading

Markets in Asia finished the day higher, as traders reacted to last Friday's upbeat U.S. jobs report, and a federal judge's temporary restraining order on President Trump's immigration ban. Separately, in China, January's Markit/Caixin services purchasing managers' index (PMI) missed expectations, showing a slower-than-expected rate of expansion, though a solid climb in orders allayed concerns. The Shanghai Composite tacked on 0.6% for the session. Friday's bond-buying news from the Bank of Japan remained in focus -- with the Nikkei ending 0.3% higher, amid strength in financial stocks -- as Japanese Prime Minister Shinzo Abe prepares for a meeting with Trump later this week. Elsewhere in the region, South Korea's Kospi added 0.2%, while Hong Kong's Hang Seng climbed 1%.

Stocks in Europe are in the red at midday, with a round of corporate earnings in the spotlight. Miners are getting a lift after Randgold Resources reported a 76% climb in fourth-quarter profits, but automakers are lagging, as Volkswagen reportedly faces a lawsuit in Germany, related to the company's emissions scandal. France's CAC 40 is down 0.5%, as the country awaits a press conference from conservative presidential candidate François Fillon, following news of a criminal investigation to determine whether his wife received a state salary without doing work. Elsewhere, Germany's DAX is off 0.8%, and London's FTSE 100 is down less than 0.1%, cooling off after Friday's two-week high.

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