Dow Jones Industrial Average Futures Point to Ninth Straight Loss

The Small-Cap Risk Investors Need to Know

Mar 28, 2017 at 9:04 AM
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Dow Jones Industrial Average (DJIA) futures are seated below fair value, suggesting the blue-chip index could extend its losing streak to a ninth day, which would be the longest since 1984. Last week's healthcare flub continues to weigh on stocks, even as oil prices bounce. Specifically, crude futures for May are 1.1% higher at $48.24 per barrel, thanks to a weaker dollar, production disruptions in Libya, and upbeat comments out of Iran regarding the extension of global output cuts. Meanwhile, stocks are paring some earlier losses after international trade data showed an almost 6% drop in the U.S. trade deficit for February.
 
Continue reading for more on today's market, including:

  • The small-cap risk investors need to know, according to Schaeffer's Senior V.P. of Research Todd Salamone.
  • 2 gold stocks to play without breaking bank.
  • Why Cree, Inc. (NASDAQ:CREE) might be flashing "buy" signs for options traders
  • Plus, the Trump tweet lifting Ford; a fresh stake gives Tesla a boost; and the biotech eyeing new highs at the open.

Dow Futures March 28

Futures on the Dow Jones Industrial Average (DJIA) are about 24 points below fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 530,483 call contracts traded on Monday, compared to 308,746 put contracts. The resultant single-session equity put/call ratio fell to 0.58, while the 21-day moving average sat put at 0.65.
  2. Shares of Ford Motor Company (NYSE:F) are getting a slight lift pre-market, rising 1% following a tweet from President Trump early this morning touting a "big announcement" by the company related to investments in three Michigan plants. Options traders are certainly hoping for even more gains, as F stock is sitting on a 5.5% year-to-date deficit as of last night's close.
  3. Electric automaker Tesla Inc (NASDAQ:TSLA) is set to open 2% higher on news Tencent Holdings Ltd. has taken a 5% passive stake in the company, buying 8.2 million shares, according to an SEC filing. The stock recently retook its 50-day moving average, and could be set to make a fresh run at multi-year highs, particularly if skeptical analysts begin raising their opinions.
  4. Upbeat results for the company's uremic pruritus (UP) treatment have Cara Therapeutics Inc (NASDAQ:CARA) booming 15.2% higher ahead of the bell, on track to open at a new annual high. The stock has already nearly doubled in 2017, but that hasn't been enough to inspire options traders, who continue to target CARA puts at unusual rates.
  5. Today's economic calendar includes as the S&P CoreLogic Case-Shiller home price index and the Conference Board's consumer confidence index, while Kansas City Fed President Esther George and Dallas Fed President Dennis Kaplan are scheduled to speak. Carnival (CCL), Dave & Buster's (PLAY), McCormick (MKC), Ollie's Bargain Outlet (OLLI), ReneSola (SOL), and Sonic (SONC) will step up to the earnings plate.

Buzz Stocks March 28

Overseas Trading

Stocks in Asia closed mostly higher, led by a strong session in Japan. The Nikkei closed with a 1.1% gain, thanks mostly to a cooling yen, though higher oil prices also added to the bullish backdrop. Hong Kong's Hang Seng had a solid day, adding 0.6%. In South Korea, the Kospi picked up 0.4%, after an upwardly revised reading on fourth-quarter gross domestic product (GDP). The outlier was China's Shanghai Composite. The index settled down 0.4% on liquidity concerns, after the People's Bank of China (PBOC) decided against injecting funds into the banking system for a third straight session.

It's so far been a mixed session for European stock markets. With traders expecting British Prime Minister Theresa May to invoke Article 50 on Wednesday to begin the official "Brexit" process, London's FTSE 100 was slightly higher at last check. Among individual equities, traders are keeping an eye on plumbing materials supplier Wolseley, with the shares rallying after a strong financial report. In France, the CAC 40 is also struggling for gains, last seen 0.1% lower. Germany's DAX, however, is outperforming, so far adding 0.5%.

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