DJIA futures are hovering below fair value, after the index hit a record high yesterday
Dow Jones Industrial Average (DJIA) futures are trading slightly below fair value this morning, with earnings and
oil prices again set to drive stock action. Media stocks in particular will be in focus, as shares of Walt Disney Co (NYSE:DIS) edge lower after last night's results, while Time Warner Inc (NYSE:TWX) eyes a post-earnings pop. Traders will also pay close attention to energy stocks, with an update on domestic crude inventories due to hit the Street not long after the open. At least check, March-dated crude oil futures were off another 1.1% at $51.61 per barrel.
Continue reading for more on today's market, including:
- Schaeffer's Senior Quantitative Analyst Rocky White blows up absurd stock market myths.
- The pre-earnings buy signal for Cliffs Natural Resources Inc (NYSE:CLF).
- How one options trader may be betting on a big move for this energy ETF.
- Plus, Gilead's slide continues, Allergan earnings impress, and analysts eye big upside for Twilio.
Futures on the Dow Jones Industrial Average (DJIA) are 14.3 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 794,053 call contracts traded on Tuesday, compared to 552,194 put contracts. The resultant single-session equity put/call ratio dropped to 0.70, while the 21-day moving average remained at 0.67.
- Drug stock Gilead Sciences, Inc. (NASDAQ:GILD) is getting hit hard after earnings, on pace to open 6.5% lower. A wide range of bearish analyst notes have since come through, including a downgrade to "neutral" from "buy" at Citigroup. The shares have been sliding lower for months, and today's pending drop could put the put-heavy 65 strike in play -- which represents nearly three-year-low territory.
- Meanwhile, fellow healthcare concern Allergan plc Ordinary Shares (NYSE:AGN) has been one of the hottest stocks in 2017, and the shares show no sign of slowing down today. Ahead of the open, AGN is up 1.7%, thanks to a fourth-quarter earnings beat and a strong full-year forecast.
- Bullish options traders will be happy to see Twilio Inc (NYSE:TWLO) among the pre-market winners, after the tech company beat Wall Street's earnings and revenue estimates for the fourth quarter. Both Pacific Crest and Canaccord Genuity raised their price targets to $40 as a result, a level that represents a 29% premium to Tuesday's close of $30.96.
- Flotek Industries (FTK), GrubHub (GRUB), Glu Mobile (GLUU), Humana (HUM), Imperva (IMPV), Owens Corning (OC), Paycom (PAYC), Sanofi (SNY), and Whole Foods (WFM) are among those reporting earnings today.
Overseas Trading
Asian stocks finished the day mostly higher, recovering from earlier losses caused by slipping oil prices. Japan's Nikkei closed 0.5% higher, as exporters gained ground and several companies delivered strong earnings reports. Elsewhere, China's Shanghai Composite tacked on 0.5%, and the Hong Kong Hang Seng added 0.7%. The South Korean Kospi bucked the regional trend higher, dropping 0.5% on the day.
European stocks are mostly lower at midday, amid an uncertain political backdrop and a round of negative earnings reactions -- although travel shares are trading higher due to falling oil prices. London's FTSE 100 is down 0.1%, as traders anticipate the House of Commons' final vote on proposed amendments to the Brexit bill. Meanwhile, Germany's DAX is down 0.1%, while the French CAC 40 is up 0.2%.
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