Dow Jones Industrial Average Futures Point to Higher Highs After Record Session

Checking In with FANG Ahead of Snap IPO

Mar 2, 2017 at 9:13 AM
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Dow Jones Industrial Average (DJIA) futures are just above fair value this morning, pointing to a slow start after Wednesday's record-high close. Specifically, the blue-chip index soared over 300 points to break through the 21,000 level for the first time in history, as traders responded positively to President Trump's first address to Congress. Meanwhile, the S&P 500 Index (SPX) and Nasdaq Composite (COMP) look set to open lower, after notching record highs of their own yesterday. Lower oil prices are weighing on stocks this morning, with April-date crude futures off 1.5% at $53.05 per barrel, after the Energy Information Administration (EIA) yesterday reported a record high in domestic stockpiles, while data showed production in Russia unchanged for February. On the upside weekly jobless claims came in lower than expected, falling to 223,000, and sending the four-week average to the lowest level in roughly 44 years. Meanwhile, traders are anxiously awaiting the first day of public trading for Snap Inc (NYSE:SNAP). The Snapchat parent last night priced its IPO at $17 per share -- higher than the $14-$16 range expected.

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

  • Checking in with FANG stocks ahead of the Snap Inc IPO. 
  • 2 sentiment surveys at bullish extremes, plus one still flashing a "buy" sign. 
  • Why insurance stocks deserve a place on your March watch list.
  • Plus, Monster earnings, an Apple supplier on the move, and a retailer set to burn bears.

Dow Futures March 2

Futures on the Dow Jones Industrial Average (DJIA) are about 19 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 1,205,822 call contracts traded on Wednesday -- the most since Nov. 10 -- compared to 639,721 put contracts. The resultant single-session equity put/call fell to 0.53, while the 21-day moving average slipped to 0.64.
  2. Analysts are busy raising their price targets on Monster Beverage Corporation (NASDAQ:MNST) after the company met per-share earnings expectations and exceeded fourth-quarter sales estimates. MNST also announced a $500 million share repurchase program. The news has MNST up 14% ahead of the bell, and could see the shares break out above the 80-day moving average for the first time in six months.
  3. Apple Inc. (NASDAQ:AAPL) supplier Broadcom Ltd (NASDAQ:AVGO) is on pace to open at a record high, up 5.1% in electronic trading after beating on earnings and revenue. The brokerage bunch has been quick to chime in, with no fewer than 15 firms offering price-target hikes so far.
  4. A recent batch of option bears could be sweating this morning, as Abercrombie & Fitch Co. (NYSE:ANF) has tacked on 6.9% ahead of the open, even after the retailer fell short of earnings expectations and reported a decline in same-store sales for the fourth consecutive quarter. The shares came with pennies of a new 16-year low on Wednesday, however, and could struggle to overcome resistance at the 60-day moving average.
  5. On the docket today is a speech from Cleveland Fed President Loretta Mester. Stepping up to the earnings mic are Anheuser Busch (BUD), Autodesk (ADSK), Barnes & Noble (BKS), Burlington Stores (BURL), Costco (COST), JD.com (JD), Kroger (KR), and Marvell Technology (MRVL).

Buzz Stocks March 2

Overseas Trading

Asian stocks had a mixed finish, despite a bullish lead by U.S. markets and a strong day for financials amid growing rate-hike expectations stateside. On the plus side of the ledger, Japan's Nikkei added 0.9% and hit an annual high -- with exporters powered by a weaker yen -- while South Korea's Kospi tacked on 0.5%, in addition to notching a 21-month peak. On the negative side, China's Shanghai Composite slid 0.5% and Hong Kong's Hang Seng gave back 0.2%.

European stocks are similarly mixed, as traders consider a fresh round of corporate earnings and data showing a four-year high in eurozone inflation -- slightly above the European Central Bank's (ECB) target, which could lead to fiscal tightening. France's CAC 40 is 0.2% higher, as pressure builds on conservative presidential candidate Francois Fillon to drop out of the race amid an ongoing corruption probe. Also in the black is the German DAX, up a modest 0.1%. By contrast, London's FTSE 100 is down nearly 0.1%.

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