DJIA futures are trading below fair value, even after strong CSCO earnings
Dow Jones Industrial Average (DJIA) futures are trading just below fair value this morning, suggesting stocks could struggle to extend their
record-setting rally. Dow stock Cisco Systems, Inc. (NASDAQ:CSCO) is on the rise after reporting strong quarterly results, while on the data front, weekly jobless claims rose less than forecast, and the Philadelphia Fed's manufacturing index jumped to its highest level since 1984 in January. While U.S. housing starts dropped 2.6% last month, building permits climbed 4.6% to a 14-month high. Meanwhile, Wall Street continues to digest the latest
rate-hike chatter, with Fed Vice Chair Stanley Fischer telling Bloomberg TV that the central bank "is a little more confident" about the economy.
Continue reading for more on today's market, including:
- The tech signal flashing for the first time in 17 years.
- 2 airline stocks that could continue to fly higher.
- A promising forecast sent this e-commerce stock to record highs.
- Plus, Barrick Gold continues to shine, Valeant's FDA win, and GNC sells off.
Futures on the Dow Jones Industrial Average (DJIA) are 3 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1 million call contracts traded on Wednesday, compared to 589,613 put contracts. The resultant single-session equity put/call ratio rose to 0.58, while the 21-day moving average stayed at 0.67.
- Gold miner Barrick Gold Corporation (USA) (NYSE:ABX) last night posted better-than-expected fourth-quarter results, lifting the shares 2% ahead of the open. Also helping the shares are price-target increases at BMO and Credit Suisse, though most analysts remain bearish on outperforming ABX stock.
- Bullish Valeant Pharmaceuticals Intl Inc (NYSE:VRX) options traders have to be cheering this morning, with the stock adding 2% ahead of the open. Helping the shares is news the company's psoriasis drug, Siliq, has been approved by the Food and Drug Administration (FDA).
- GNC Holdings Inc (NYSE:GNC) is looking at record lows when the market opens, after the company's disappointing fourth-quarter results. In fact, GNC shares have shed 25% in pre-market trading, which would just add to their 69.5% year-over-year decline. Meanwhile, many options traders were betting on a pullback.
- Alexion Pharmaceuticals (ALXN), Himax Technologies (HIMX), Melco Crown Entertainment (MPEL), MGM Resorts (MGM), Waste Management (WM), and Wendy's (WEN) are a few of the other names reporting earnings today.
Overseas Trading
Stocks in Asia saw another mixed finish, as the U.S. dollar retreated from recent Fed-induced gains. Japan's Nikkei dropped 0.5%, as the yen strengthened and electronics maker Toshiba continued its ongoing decline. South Korea's Kospi also finished in the red, shedding 0.1%. Meanwhile, China's Shanghai Composite and Hong Kong' Hang Seng added 0.5% apiece, with the latter tagging its highest close in 18 months.
European markets are lower at midday, despite last night's record close in the U.S. Stocks in the area seem to be taking a breather, with financial and oil shares down following a recent rally. London's FTSE 100 is down 0.4%, as engineering firm Cobham dropped as much as 18% earlier on a profit warning. France's CAC 40 is off 0.5%, as traders digest a slight dip in unemployment for the fourth quarter, falling to 10% from 10.1%. And the German DAX is 0.3% lower, amid reports authorities are concerned about mass layoffs following news General Motors Company (NYSE:GM) is in talks to sell its Europe-based unit to Peugeot parent PSA Group.
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