Dow Jones Industrial Average Futures Signal 10th Straight Win

The Carl Icahn Favorite On Fire Ahead of Earnings

Feb 23, 2017 at 9:09 AM
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Dow Jones Industrial Average (DJIA) futures are trading above fair value, as large-cap stocks look poised to continue their historic streak of record highs. While the S&P 500 Index (SPX) and Nasdaq Composite (COMP) both closed lower yesterday following the latest Fed meeting minutes, the Dow is eyeing a 10th straight win, after Treasury Secretary Steve Mnuchin said he hopes Congress passes a "very significant" tax reform before August. Meanwhile, rising oil prices are adding to the risk-on attitude; April-dated crude futures are up 1.9% at $54.60 per barrel, ahead of a report on domestic crude inventories. Also on the data front, weekly jobless claims came in slightly higher than expected, though the four-week moving average fell to its lowest point since 1973. 

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

  • 2 real estate stocks with cheap options
  • The Carl Icahn favorite on fire ahead of earnings. 
  • Why First Solar, Inc.'s (NASDAQ:FSLR) earnings beat wasn't enough. 
  • Plus, Tesla earnings, Square rallies, and a surprise from Kohl's. 

stock futures feb 23

Futures on the Dow Jones Industrial Average (DJIA) are 33 points above fair value. 

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 847,068 call contracts traded on Wednesday compared to 506,663 put contracts. The resultant single-session equity put/call ratio dipped to 0.60, while the 21-day moving average moved down to 0.65.
  2. Tesla Inc (NASDAQ:TSLA) last night reported a bigger-than-expected loss for the fourth quarter, but the company laid out an ambitious plan for the Model 3 sedan. And while CEO Elon Musk said the company may need to raise more capital this year, analysts are eyeing huge upside. For example, RBC raised its price target to $314 -- in all-time-high territory -- and Baird boosted its price target to $368, saying "Tesla's energy potential is still undervalued." However, most analysts remain bearish on TSLA
  3. The brokerage bunch is also raising its outlook on payment processor Square Inc (NYSE:SQ), after the company topped Wall Street's fourth-quarter estimates. The stock is now pointed 9% higher in pre-market action, set to open at all-time highs, with no fewer than seven brokerage firms raising their price targets
  4. Retailer Kohl's Corporation (NYSE:KSS) is looking to shock bearish traders this morning with its surprise fourth-quarter profit beat. KSS is set to add 2.3% at the open, though this would still keep the shares below the $44-$45 region, which is home to their year-over-year breakeven level, and the site of last month's huge bear gap. 
  5. Acacia Communications (ACIA), Apache (APA), Baidu (BIDU), BioMarin Pharmaceuticals (BMRN), Splunk (SPLK), and Universal Display (OLED) are some of the other companies reporting earnings. Atlanta Fed President Dennis Lockhart is set to give a speech, as well. 

Buzz Stocks Feb 23

Overseas Trading

Wednesday's Fed notes weighed on stocks in Asia, with most major indexes finishing in the red despite a rise in oil prices. Japan's Nikkei ticked 0.04% lower, as shares of Toshiba resumed their downward slide and the yen picked up in strength. Bank stocks led the laggards elsewhere in the region, with China's Shanghai Composite and Hong Kong's Hang Seng shedding 0.3% and 0.4%, respectively. In South Korea, the Kospi added a slight 0.05%, after the central bank left interest rates unchanged.

It's also a mixed day for markets in Europe, with telecom stocks outperforming, while financial and basic resource shares struggle for direction. London's FTSE 100 is down 0.1% at last check, even after retail sales data showed a recovery from January. Germany's DAX is off 0.2%, as traders digest a jump in annualized inflation for the fourth quarter. France's CAC 40 is shaking off the downbeat trend, up 0.1%.

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