Dow Jones Industrial Average Futures Bounce with Earnings in Focus

The SPY Strike That Could Keep Stocks in Check

Feb 7, 2017 at 9:21 AM
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After U.S. stocks traded lower to start the week, Dow Jones Industrial Average (DJIA) futures are trading above fair value this morning, with a number of big-name stocks on the earnings slate. Most notably, Dow component Walt Disney Co (NYSE:DIS) will report quarterly results after the close. In the meantime, traders are digesting earnings results from automaker General Motors Company (NYSE:GM), while Michael Kors Holdings Ltd (NYSE:KORS) is on pace for another post-earnings sell-off. For economic data, the U.S. trade deficit jumped to its highest point since 2012, and the Job Openings and Labor Turnover (JOLTS) survey is due out shortly after the open. 

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

  • Schaeffer's Senior V.P. of Research Todd Salamone notes the SPY options strike that could keep stocks in check. 
  • 3 sentiment surveys signaling optimism. 
  • The delisting warning that crushed one stock. 
  • Plus, one healthcare company's lowered guidance, a royal stake in Twitter, and more on GM earnings.

dow futures feb 7

Futures on the Dow Jones Industrial Average (DJIA) are nearly 51 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 657,170 call contracts traded on Monday, compared to 490,641 put contracts. The resultant single-session equity put/call ratio rose to 0.75, while the 21-day moving average remained at 0.67.
  2. Healthcare stock Cardinal Health Inc (NYSE:CAH) is edging higher in electronic trading, after topping Wall Street's earnings forecasts -- though the company cut its full-year outlook. The shares have been on the mend since bottoming just before the U.S. presidential election, adding 21.1%. 
  3. Twitter Inc (NYSE:TWTR) is set to open 1.5% higher, thanks to reports Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud reported a 4.9% passive stake in the company. TWTR has been on the rise since its December bottom of $16.16, closing Monday at $17.93. The company is scheduled to report earnings Thursday morning. 
  4. GM is looking at a lower open, even though the company posted better-than-expected fourth-quarter earnings and revenue. Still, the shares have been strong on the charts in recent months, notching a series of higher lows since the election.
  5. Akamai Technologies (AKAM), Archer-Daniels Midland (ADM), BP PLC (BP), Buffalo Wild Wings (BWLD), Gilead Sciences (GILD), GW Pharmaceuticals (GWPH), Mallinckrodt (MNK), Mondelez (MDLZ), Myriad Genetics (MYGN), Panera Bread (PNRA), Spirit Airlines (SAVE), Take-Two Interactive Software (TTWO), Twilio (TWLO), and Zillow Group (ZG) will also report earnings today.

buzz stocks feb 7

Overseas Trading

The U.S. economy and foreign policy issues are in focus across the globe again today, with markets in Asia finishing in the red as traders took a cautious approach. Japan's Nikkei shed 0.4%, as a stronger yen weighed on major exporters, and automaker Toyota increased its profit forecast by less than expected. In South Korea, the Kospi ended 0.1% lower, as electronics specialist Toshiba slipped after receiving a bid for its memory chip sector from SK Hynix. China's Shanghai Composite and Hong Kong's Hang Seng dropped roughly 0.1% apiece, as well.

In Europe, meanwhile, stocks are seeing some gains. Homebuilders are among the leaders, after British builder Bellway reported a 6.5% increase in sales over the past six months, compared to the same period a year before. Miners are also getting a boost following J.P. Morgan Securities' upwardly revised outlook for iron ore prices this year. On the economic front, the U.K. saw a drop in consumer spending in January amid increased inflation worries, while Germany said industrial output fell 3% in December -- its largest decline in eight years. At last check, London's FTSE 100 is 0.7% higher, Germany's DAX is up 0.6%, and the French CAC 40 is trading 0.03% above breakeven.

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