Dow Jones Industrial Average Futures Signal Strength Amid Earnings Dump

3 Huge Options Bets On Gold

Feb 9, 2017 at 9:00 AM
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Dow Jones Industrial Average (DJIA) futures are pointing to a positive open for stocks, trading comfortably above fair value following a mixed session on Wednesday. The apparent risk-on attitude comes despite an underwhelming earnings report from Dow component The Coca-Cola Co (NYSE:KO), while social media stock Twitter Inc (NYSE:TWTR) is facing a double-digit percentage drop after its own quarterly results. Traders are also responding to a surprise decline in weekly jobless claims, as just 234,000 people filed for unemployment benefits last week, compared to estimates of 250,000. Later on, Chicago Fed President Charles Evans and St. Louis Fed President James Bullard will deliver speeches, with Wall Street favorite NVIDIA Corporation (NASDAQ:NVDA) scheduled for a post-close earnings release. 

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

  • 3 huge options trades on gold. 
  • One trader's ambitious options strategy on Expedia Inc (NASDAQ:EXPE) before earnings. 
  • Inside the latest DryShips Inc. (NASDAQ:DRYS) sell-off. 
  • Plus, another healthcare merger gets blocked, Twitter's earnings woes, and Tesla's big news. 

stock futures today

Futures on the Dow Jones Industrial Average (DJIA) are almost 32 points above fair value. 

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 773,686 call contracts traded on Wednesday, compared to 532,845 put contracts. The resultant single-session equity put/call ratio slid to 0.69, while the 21-day moving average moved up to 0.68.
  2. A federal judge put another high-profile insurance merger on ice last night, blocking the proposed deal between CIGNA Corporation (NYSE:CI) and Anthem Inc (NYSE:ANTM). CI is edging lower in pre-market trading as a result, while shares of ANTM are pointed higher. This comes after a judge blocked the merger of two other healthcare giants last month. 
  3. TWTR is facing a 10% drop at the open, dashing the hopes of bullish options traders. While the social media company edged out analysts' adjusted earnings estimates, fourth-quarter revenue badly missed the mark and its current-quarter outlook came up short of expectations. 
  4. On a more bullish note, electric automaker Tesla Motors Inc (NASDAQ:TSLA) is poised to continue its recent hot streak, up another 2% ahead of the open, putting the shares on pace for their highest open since August 2016. Boosting the stock this morning are reports the company will begin pilot production of its Model 3 sedan this month. Analysts at Morgan Stanley and KGI have both eyed the vehicle as a bullish catalyst for the stock. Looking back, TSLA has now added 47.1% since its November low. 
  5. Rounding out the earnings schedule today is Activision Blizzard (ATVI), Beazer Homes (BZH), Borg Warner (BWA), Cerner (CERN), Cliffs Natural Resources (CLF), Coty (COTY), CVS Health (CVS), CyberArk (CYBR), Dunkin Brands (DNKN), Gannett (GCI), Kellogg (K), Nielsen (NLSN), Pandora Media (P), Reynolds American (RAI), Skechers (SKX), Viacom (VIAB), Western Union (WU), Yelp (YELP), and Yum! Brands (YUM).

Buzz Stocks Feb 9

Overseas Trading

Stocks in Asia finished mostly higher, as crude oil and gold prices both rose. China's Shanghai Composite gained 0.5%, Hong Kong's Hang Seng added 0.2%, and South Korea's Kospi tacked on 0.04%. Japan's Nikkei bucked the upbeat trend, sliding 0.5%, as nerves set in ahead of tomorrow's meeting between Prime Minister Shinzo Abe and U.S. President Donald Trump. Digging deeper, electronics specialist Toshiba dropped 6.7% after receiving bids valued at up to $3.6 billion for a nearly 20% stake in its flash memory business. The country also saw core machinery orders jump by 6.7% in December -- far above expectations -- hinting at higher capital spending ahead.

European markets are in positive territory at midday, with a round of corporate earnings in focus. France's CAC 40 has added 0.8% following upbeat results for bank stocks, including Société Générale SA. Paris-based drugmaker Sanofi is also seeing strong gains after a U.S. federal appeals court ruled in the company's favor on Wednesday, allowing it to keep selling cholesterol drug Praluent. In Germany, the DAX is up 0.6%, after the country reported a record-high global trade surplus for 2016. London's FTSE 100 is 0.3% higher, on track for its third straight positive close, even as the pound strengthens. Utility, financial, and industrial stocks are in the lead.

Stay on top of breaking stock market news with Schaeffer's Midday Market Check.


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