Dow Jones Industrial Average Futures Point to Extended Stock Rally

Time to Buy Presidents Day Puts?

Josh Selway
Feb 15, 2017 at 9:07 AM
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Dow Jones Industrial Average (DJIA) futures are yet again trading above fair value, as stocks look to extend their string of record highs. Fed Chair Janet Yellen will again be speaking in front of Congress, after yesterday suggesting a rate hike was on the table for the Fed's March meeting. The consumer price index (CPI) and retail sales also highlight a day chock-full of economic data, with both readings rising faster than predicted in January. In stock news, traders are digesting the latest round of hedge fund investments, with Dow stock Cisco Systems, Inc. (NASDAQ:CSCO) scheduled to report earnings after the close.

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

  • Is it time to buy Presidents Day puts? Schaeffer's Senior Quantitative Analyst Rocky White explains.
  • Inside the booming demand for Freeport-McMoRan Inc (NYSE:FCX) put options
  • Are analysts overlooking this soaring tech stock ahead of earnings tonight?
  • Plus, Berkshire's huge Apple move, Groupon does it again, and the accessories stock getting pummeled. 

stock futures today

Futures on the Dow Jones Industrial Average (DJIA) are 35.6 points above fair value. 

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 984,271 call contracts traded on Tuesday, compared to 518,164 put contracts. The resultant single-session equity put/call ratio dropped to 0.53, while the 21-day moving average stayed at to 0.67.
  2. Apple Inc. (NASDAQ:AAPL) has been on a remarkable run in recent weeks, gaining almost 30% since its November low, as it pushes past the $700 billion market cap. The shares are set to flirt with record highs again today, following news that Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK.A) increased its position to more than 57 million shares from just over 15 million. 
  3. After surging more than 6% yesterday,  Groupon Inc (NASDAQ:GRPN) is up another 11% in electronic trading, setting up another potential huge post-earnings swing. Traders are cheering stronger-than-expected earnings, as well as last night's news of a passive stake from Alibaba Group Holdings Ltd (NYSE:BABA). 
  4. On the other hand, accessories specialist Fossil Group Inc (NASDAQ:FOSL) is set to sell off following the company's disappointing fourth-quarter revenue. The shares have so far dropped 20% in pre-market trading, which'll have them at seven-year lows. FOSL was already falling fast since its short-lived November rally
  5. Some of the other items on today's economic calendar are the Empire State manufacturing survey, industrial production data, business inventories, the housing market index, regularly scheduled crude inventories, and Treasury International Capital (TIC) data. Applied Materials (AMAT), CBS (CBS), and TripAdvisor (TRIP) are some of the biggest names reporting quarterly results. 

Buzz Stocks Feb 15

Overseas Trading

It was a mixed finish for stocks in Asia as traders digested Yellen's first round of congressional testimony. Japan's Nikkei won back most of Tuesday's losses, climbing 1% on gains in bank stocks and a weakening yen, which overshadowed another hefty loss for Toshiba. Specifically, the shares dropped nearly 9% after Reuters reported the company would record a bigger-than-projected loss of $6.3 billion to its U.S. nuclear unit. Elsewhere in the region, Hong Kong's Hang Seng followed suit, adding 1.2%, while South Korea's Kospi tacked on 0.5%. China's Shanghai Composite bucked the trend, however, dropping 0.2% after five consecutive daily wins.

Markets in Europe were last seen modestly higher, as financial stocks climb on increasing odds of a U.S. interest rate hike next month. In economic news, U.K. unemployment remained at 4.8% in the fourth quarter -- the lowest level since 2005. Plus, the country saw a slight dip in wage growth and an uptick in consumer prices from December to January. London's FTSE 100 is up 0.5%, on track for a one-month closing high, while France's CAC 40 has also tacked on 0.5%, and Germany's DAX is lagging, up just 0.1%.

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