DJIA futures are lower as traders exercise caution
Dow Jones Industrial Average (DJIA) futures are below fair value, suggesting the market will begin the week on a low note. The economic and earnings calendars are fairly quiet for today, with factory orders due later this morning and Minneapolis Fed President Neel Kashkari due to speak in the afternoon. Traders will likely have their eyes fixed on the White House this week, amid President Donald Trump's wiretapping accusations aimed at former President Barack Obama, and with a replacement plan for Obamacare and an updated immigration ban expected soon. Foreign policy matters are particularly in the spotlight after reports North Korea fired four ballistic missiles into the sea off the northwest coast of Japan. Looking ahead, stocks could react to the crucial nonfarm payrolls report on tap for this Friday, which may fuel already sky-high expectations for a
March rate hike.
Continue reading for more on today's market, including:
- The Dow signal that just flashed for the second time in 2 years.
- Behind the scenes with a Schaeffer's options trade that scored 100% profits in under 3 days.
- Macy's Inc (NYSE:M) stock slid as buyout hopes took a hit.
- Plus, the drugmaker booming on a Vertex deal, Snap Inc shakes off bearish attention, and TG Therapeutics eyes a 62% surge.
Futures on the Dow Jones Industrial Average (DJIA) are more than 50 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 881,610 call contracts traded on Friday, compared to 619,489 put contracts. The resultant single-session equity put/call ratio rose to 0.70, while the 21-day moving average sat put at 0.63.
- Drugmaker Concert Pharmaceuticals Inc (NASDAQ:CNCE) is set to pop 41.5% at the open, putting the shares on track for their highest level seen since last June. Boosting the stock is news Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) will buy Concert's cystic fibrosis treatment, CTP-656, along with other assets in a deal valued as high as $250 million.
- Market newcomer Snap Inc (NYSE:SNAP) is on track to keep its rally alive, up 3% ahead of the bell despite a bearish note from analysts at Needham. Specifically, the firm initiated coverage on SNAP with an "underperform" rating, noting that the company's total addressable market (TAM) is 80% smaller than that of Facebook Inc (NASDAQ:FB). Separately, Snap Inc received a downbeat write-up in Barron's, which called the stock "overvalued."
- Biotech concern TG Therapeutics Inc (NASDAQ:TGTX) is roaring 62.6% higher in electronic trading, following upbeat results in a phase 3 trial of the company's chronic lymphocytic leukemia treatment. Should these gains materialize, TGTX could open at its highest level in nearly five months, and break out above its 320-day moving average for the first time since December 2015.
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The economic calendar is relatively quiet for the day. Ascena Retail Group (ASNA) headlines a rather short list of names on the earnings docket.
Overseas Trading
Asian stocks generally started the week on the right foot, shaking off concerns sparked by North Korea's weekend missile tests. China's Shanghai Composite muscled 0.5% higher, even after Premier Li Keqiang predicted an economic growth rate of 6.5% for 2017, which would mark the slowest pace in 27 years. Meanwhile, South Korean Trade Minister Joo Hyung-hwan voiced "deep concern" over China's hardening trade policy against the country, though the Kospi still managed a 0.1% gain. Elsewhere, Hong Kong's Hang Seng added 0.2%, while the Japanese Nikkei bucked the trend, giving up 0.5%, as the yen rebounded.
European markets are running into headwinds, as a slowing Chinese economy weighs on commodities, and Deutsche Bank's plan to raise capital via a stock sale is hitting the financial sector. The German DAX -- on which Deutsche Bank trades -- has stumbled 0.3%, while the French CAC 40 is down 0.4%. Rounding things out, London's FTSE 100 has given up 0.4%, though shares of Standard Life and Aberdeen Asset Management have spiked on a merger agreement.
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