Dow Jones Industrial Average Futures Fall After GDP; Trump Speech in Focus

Dow Jones Industrial Average (DJIA) futures are trading below fair value, a day after the index recorded its 12th straight record-high close -- tying the longest streak ever. Stocks are reacting to this morning's latest estimate on fourth-quarter gross domestic product (GDP), which held at 1.9%, despite an upward revision to consumer spending. Plus, the Chicago purchasing managers index (PMI) and the Conference Board's consumer confidence survey come out today, on top of speeches from a number of regional Fed presidents. The day's main highlight, though, is scheduled for after the close, when President Donald Trump addresses Congress for the first time. However, even if the Dow's historic run comes to an end, the index is on pace for a healthy monthly gain of 4.9%.

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

• Schaeffer's Senior V.P. of Research Todd Salamone on the 2 riskiest commodities sectors. 
• 2 energy stocks due for a bounce. 
• How BlackBerry Ltd's (NASDAQ:BBRY) new phone fell flat. 
• Plus, Target's earnings miss, Valeant falls again, and Endo dips ahead of the S&P axe. 

Futures on the Dow Jones Industrial Average (DJIA) are 12.4 points below fair value. 

5 Things You Need to Know Today
  

1. The Chicago Board Options Exchange (CBOE) saw 774,156 call contracts traded on Monday, compared to 484,472 put contracts. The resultant single-session equity put/call ratio fell to 0.63, while the 21-day moving average stayed at 0.65.
2. Target Corporation (NYSE:TGT) is set to sell off this morning, down 13% in pre-market trading. The company missed the Street's fourth-quarter earnings and revenue forecasts, and gave a weak full-year outlook. The drop would put the shares at a more than two-year low, all the while crushing the hopes of put sellers. 
3. Lacklaster quarterly results are also pressuring Valeant Pharmaceuticals Intl Inc (NYSE:VRX), with the drugmaker dropping 5% in electronic trading. The company's fourth-quarter earnings beat was overshadowed by a 13% decline in revenue. As such, VRX shares' recent hot streak looks ready to cool. 
4. Fellow pharmaceutical stock Endo International plc (NASDAQ:ENDP) is edging lower ahead of the open, as well, even though the company posted better-than-expected quarterly results. Of course, even if the shares struggle today, they could be in store for a short-term boost after leaving the S&P 500 Index (SPX) on Thursday. 

5. Kansas City Fed President Esther George, San Francisco Fed President John Williams, and St. Louis Fed President James Bullard will speak today, while Domino's (DPZ), Etsy (ETSY), Halozyme Therapeutics (HALO), and Palo Alto Networks (PANW) are some of the companies reporting earnings. 

Overseas Trading

It was a mostly positive finish for markets in Asia, with traders awaiting details from Trump's speech before Congress and digesting hawkish comments from Dallas Fed President Robert Kaplan. Japan's Nikkei ended 0.06% higher amid mixed economic data, which showed retail sales increasing for a third consecutive month, but industrial production dropping for the first time in six months. China's Shanghai Composite and South Korea's Kospi also managed gains, adding 0.4% and 0.3%, respectively. Hong Kong's Hang Seng bucked the trend higher, though, dropping 0.8%.

Stocks in Europe are mixed, as investors parse the latest round of corporate earnings. In the U.K., engineering firm Meggitt is leading the gainers, up 14% after posting a revenue increase for 2016. This is helping boost fellow defense stocks throughout the region, which are also higher after Trump promised a "historic increase" in military spending. At last check, London's FTSE 100 is up 0.03%, while France's CAC 40 is down 0.1% as a disappointing consumer price index overshadows a rise in consumer spending. Germany's DAX was last seen 0.3% lower.

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