Dow Jones Industrial Average Futures Gain Ahead of Fed Decision

What the First 50 Days Mean for Stocks

Mar 15, 2017 at 9:02 AM
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Dow Jones Industrial Average (DJIA) futures are trading above fair value this morning, as the blue-chip index looks to snap a two-day losing streak. All eyes are on today's Federal Open Market Committee (FOMC) policy decision, with Wall Street fully expecting a quarter-point rate hike. The Fed meeting will be followed by a press conference with Fed Chair Janet Yellen at 2:30 p.m. ET. Recovering oil prices could also help stocks, with April-dated crude futures up 2.2% at $48.76 per barrel, after the International Energy Agency (IEA) said output cuts from the world's largest oil producers will help the market over time. 

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

  • What do the first 50 days of 2017 mean for stocks? Schaeffer's Senior Quantitative Analyst Rocky White finds out. 
  • Why Tesla Inc (NASDAQ:TSLA) could be set to take off again.
  • 3 healthcare stocks stumbling on analyst knocks.
  • Plus, lower lows for Snap; the tech stock getting blasted; and Adobe stays hot. 

stock futures today

Futures on the Dow Jones Industrial Average (DJIA) are 50.6 points above fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 666,485 call contracts traded on Tuesday, compared to 489,700 put contracts. The resultant single-session equity put/call ratio moved up to 0.73, while the 21-day moving average stayed at 0.62.
  2. After hitting a new low on Tuesday, Snap Inc (NYSE:SNAP) is down another 1.9% in electronic trading, after Cantor Fitzgerald initiated coverage with an "underweight" rating and $18 price target. The brokerage firm cited a "rich" valuation and an "unproven model," as well as "slowing growth trends" and an "intense competitive landscape." SNAP stock rallied as high as $29.44 on its second day of trading, but closed yesterday at $20.58. 
  3. Advertising technology stock The Rubicon Project Inc (NYSE:RUBI) has a history of making huge downside moves, and it looks like another is on the way. Specifically, the shares are down 23% in pre-market action, putting them on pace for record lows, after the company revealed disappointing fourth-quarter results and a weak current-quarter outlook, and named a new CEO. After closing Tuesday at $8.39, the stock was already down over 50% year-over-year. 
  4. Ahead of earnings tomorrow, Adobe Systems Incorporated (NASDAQ:ADBE) could make a push for record highs today, on the heels of a price-target hike to $129 from $118 at Morgan Stanley. ADBE stock has been hot all year, and now sports a 2017 lead of 18%. 
  5. Today will be a huge day for the stock market, as the Fed's meeting will conclude with a key rate decision, followed by Yellen's speech. Also slated for release are the consumer price index (CPI), retail sales, the Empire State manufacturing survey, business inventories, the NAHB housing market index, weekly crude inventories, and Treasury International Capital (TIC) data. Guess (GES), Jabil Circuit (JBL), and Oracle (ORCL) will enter the earnings confessional.

Buzz Stocks March 15

Overseas Trading

Asian benchmarks finished mostly lower, as caution set in ahead of today's policy announcement from the Fed and energy shares declined. In Japan, the Nikkei closed down 0.2%, as the yen strengthened and Toshiba shares slid on speculation of a possible delisting. South Korea's Kospi, meanwhile, settled fractionally lower after data showed the country's unemployment rate hit an annual high in February.  Elsewhere in the region, Hong Kong's Hang Seng gave back 0.2%, while China's Shanghai Composite rose 0.1%.

European stocks are mixed at midday, ahead of the interest rate decision in the U.S. and with voting underway in the Netherlands. At last check, London's FTSE 100 is up 0.2% amid a rally in mining stocks, while the French CAC 40 is also flirting with a 0.2% gain. The German DAX, however, is trading just below breakeven.

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