Dow Jones Industrial Average Futures Point to Lower Start Despite GDP

Analyst: This FANG Stock Offers 'Best Long-Term Growth'

Mar 30, 2017 at 9:12 AM
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Dow Jones Industrial Average (DJIA) futures are pointing to another lower start for stocks, sitting just below fair value. This morning's final reading for fourth-quarter gross domestic product (GDP) was revised higher to 2.1%, edging out previous estimates of 1.9% growth, with consumer spending also upwardly revised, to a 3.5% increase. Meanwhile weekly jobless claims fell by 3,000 to 258,000 -- higher than predicted -- while the four-week average rose to 245,250, which is the highest level seen this year. The large-cap index has finished nine of the past 10 sessions in the red, but could still eke out a weekly win, while the tech-heavy Nasdaq Composite (COMP) is on pace for a flat open, and could extend its winning streak to a fifth day.
Continue reading for more on today's market, including:

  • Behind the extreme options trading on these 2 energy ETFs.
  • Analyst: This booming "FANG" stock is "the best long-term growth story available."
  • A pair of steel stocks approaching critical levels.
  • Plus, a retailer spiraling after earnings; an asset sale boosts ConocoPhillips; and the biotech dropping despite upbeat data.

Dow Futures March 30

Futures on the Dow Jones Industrial Average (DJIA) are 16 points below fair value.

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 762,292 call contracts traded on Wednesday, compared to 411,210 put contracts. The resultant single-session equity put/call ratio slid to 0.54, while the 21-day moving average edged down to 0.64.
  2. On pace for another massive post-earnings swing, retail issue Lululemon Athletica Inc. (NASDAQ:LULU) stock is down more than 20% in pre-market trading, on track to open at levels not seen since early 2016. The company reported a fourth-quarter earnings miss, along with a disappointing outlook, inspiring a slew of analysts to downwardly revise their ratings and price targets on LULU stock.
  3. Oil stock ConocoPhillips (NYSE:COP) is set to add 7.5% at the open, which could help the shares break out above their 50-day moving average. Boosting COP is news the company will sell its interest in a joint venture, the FCCL Partnership, to Cenovus Energy Inc (USA) (NYSE:CVE) in a deal worth $13.3 billion.
  4. Biotech interest Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP) is getting a mixed reception on Wall Street this morning, after reporting its add-on cystic fibrosis treatment saw promising results in a mid-stage study. The news initially helped the shares soar nearly 12% in electronic trading, but CRBP stock then reversed course, and is now on pace to open 11.1% lower. These losses come even after Cantor Fitzgerald reiterated its "overweight" rating at $17 price target -- deep into never-before-seen territory, and nearly twice CRBP's close of $9 yesterday.
  5. Fed speeches will continue today, with Dallas Fed President Dennis Kaplan, San Francisco Fed President John Williams, Cleveland Fed President Loretta Mester, and New York Fed President Willam Dudley all due to take turns at the podium before the session's end. AngioDynamics (ANGO) and Worthington Industries (WOR) are among the companies that will report earnings.

Buzz Stocks March 30

Overseas Trading

Asian stock indexes finished lower, weighed down by extended losses in Chinese stocks. Specifically, China's Shanghai Composite shed 1% to close in the red for a fourth straight day, as liquidity concerns continued to weigh on investor sentiment. Elsewhere, Hong Kong's Hang Seng dropped 0.4%, while Japan's Nikkei finished 0.8% lower. South Korea's Kospi also fell, ending the day down 0.1%, even as Samsung Electronics shares gained following the release of the Galaxy S8 smartphone.              

Stocks in Europe are also struggling to gain momentum, with more details on the U.K.'s plans to exit the European Union expected to emerge today. Investors are also considering higher oil prices -- which are providing a lift for energy stocks -- and disappointing inflation data out of Germany, where consumer prices rose less than expected in March. London's FTSE 100 has given back 0.3% at the halfway point, while the French CAC 40 is off 0.1%. Germany's DAX, meanwhile, has managed to stay above water with its 0.04% advance.

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