Dow Jones Industrial Average Futures Signal Fresh Highs Ahead of Fed

Stock Pickers' Signal Flashed For the First Time Since 2010

Feb 22, 2017 at 9:10 AM
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Dow Jones Industrial Average (DJIA) futures are trading above fair value, with the Dow aiming for a ninth straight win and fresh record highs. While traders are considering the latest round of earnings -- which features a number of restaurant stocks -- the most notable report comes post-close when Elon Musk's Tesla Inc (NASDAQ:TSLA) takes the stand. For economic data, Wall Street will get existing home sales this morning, followed by the afternoon release of the Fed's February meeting minutes, where traders will look for clues as to the timing of the Fed's next rate hike. Investors are also keeping an eye on oil prices after yesterday's rally, though April-dated crude futures were last seen 1.1% lower at $53.74 per barrel. 

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

  • This stock pickers' signal just went off for the first time since 2010, according to Schaeffer's Senior Quantitative Research Analyst Rocky White. 
  • Why it may be time to buy puts on these 3 bank stocks.
  • 3 drug stocks that suffered huge losses yesterday. 
  • Plus, Mobileye beats, the tech stock crushing shorts, and First Solar's mixed report. 

stock futures today feb 22

Futures on the Dow Jones Industrial Average (DJIA) are 87 points above fair value. 

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 927,005 call contracts traded on Tuesday, compared to 567,307 put contracts. The resultant single-session equity put/call ratio rose to 0.61, while the 21-day moving average stayed at 0.66.
  2. Self-driving tech specialist Mobileye NV (NYSE:MBLY) is edging higher in pre-market trading, thanks to the company's better-than-expected fourth-quarter results. Options traders were betting on an upward move for the stock, which has outperformed the S&P 500 Index (SPX) by 29 percentage points during the past two months. 
  3. Shares of navigation expert Garmin Ltd. (NASDAQ:GRMN) are also set to gain following impressive quarterly results, up 8.4% ahead of the bell. The stock is up 23% over the past 12 months, but short interest is still extremely elevated. 
  4. On a bearish note, First Solar, Inc. (NASDAQ:FSLR) is down 2.5% in electronic trading after the company's earnings report. While the solar firm raised its full-year sales outlook, it scrapped plans for an Arizona facility due to opposition about its location on tribal lands. Of course, the stock could follow the lead of sector peer SunPower Corporation (NASDAQ:SPWR), which dropped immediately after earnings, but has added almost 27% in the two sessions since. 
  5. Clovis Oncology (CLVS), Ctrip.com (CTRP), DISH Network (DISH), Fitbit (FIT), and Square (SQ) are some of the other names on the earnings schedule today. 

Buzz Stocks Feb 22

Overseas Trading

Asian markets finished another day mostly in positive territory, with traders looking forward to the latest Fed meeting minutes. Banking stocks continued to lag following Tuesday's losses from HSBC, exacerbated by lower yields on Japanese government bonds. Turning to the indexes, China's Shanghai Composite gained 0.2% for the day, as did South Korea's Kospi, while Hong Kong's Hang Seng led the pack, tacking on 1%. Meanwhile, Japan's Nikkei ended a hair below breakeven, despite a 22% jump in Toshiba shares, after a report showed the company is looking to sell its memory chip business for no less than $17.6 billion.

Stocks in Europe are mixed at midday, with indexes paring earlier gains as traders parse the latest round of corporate earnings. Telecom stocks are particularly strong, with Sweden-based Ericsson up 3.7% on bullish analyst attention and M&A buzz, while basic resources are struggling on a retreat in oil prices. At last check, London's FTSE 100 and the German DAX are up 0.1% apiece, with the latter edging higher on an upbeat Ifo business climate index. France's CAC 40, however, is 0.1% lower.

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