Dow Jones Industrial Average Futures Gain After ADP Report

13 Stocks Set to Beat the Market

Apr 5, 2017 at 9:03 AM
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The Dow Jones Industrial Average (DJIA) is set to open higher this morning, with Dow futures trading above fair value ahead of a busy day for economic data. Stocks are getting a boost from this morning's ADP employment report, which showed private payrolls increasing by 263,000 in March, well above estimates -- news that bodes well for Friday's nonfarm payrolls report. Investors are also keeping a close eye on this afternoon's release of the Fed meeting minutes, and tomorrow's Mar-a-Lago summit between President Donald Trump and Chinese President Xi Jinping. Among individual stocks, Panera Bread Co (NASDAQ:PNRA) is surging after JAB Holding agreed to buy the restaurant chain. 

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

  • Why these 13 stocks could outperform the S&P 500 Index.
  • How options traders reacted to news of a revamped Obamacare repeal effort. 
  • Inside the growing demand for call options on Disney stock.  
  • Plus, Panera's buyout offer; Amazon's NFL deal; and Walgreens sales miss the mark. 

stock futures today

Futures on the Dow Jones Industrial Average (DJIA) are roughly 65 points above fair value. 

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 651,097 call contracts traded on Tuesday, compared to 405,812 put contracts. The resultant single-session equity put/call ratio edged down to 0.62, while the 21-day moving average stayed at 0.64.
  2. JAB Holding is buying Panera Bread for $7.5 billion, including debt. The $315-per-share offer price represents a 15% premium to PNRA stock's Tuesday close of $274. The deal is great news for Panera options traders, who were buying calls as M&A buzz heated up yesterday. 
  3. Amazon stock has been soaring in recent sessions, touching a record high of $908.54 just yesterday. The e-commerce firm will once again be in focus today, thanks to news it has acquired the streaming rights to 10 Thursday night NFL games. What's more, AMZN has made a deal that will allow it to buy a stake in Plug Power Inc (NASDAQ:PLUG).  
  4. Shares of pharmacy chain Walgreens Boots Alliance Inc (NASDAQ:WBA) are set to lose nearly 1% at the open, after the company reported an unexpected drop in fiscal second-quarter sales. At Tuesday's close of $82.50, WBA stock is sitting just below its year-over-year breakeven mark. Meanwhile, the company is still trying to acquire Rite Aid Corporation (NYSE:RAD). 
  5. The regularly scheduled crude inventories report and the ISM services index are slated for release today. Bed Bath & Beyond (BBBY) and Monsanto (MON) highlight the earnings slate.

stocks on the move today

Overseas Trading

Asian markets largely rose, despite a rough day for regional bank stocks. China's Shanghai Composite soared 1.5% after being shuttered on Monday and Tuesday for a public holiday, with mainland stocks boosted by the planned development of a new economic zone southwest of Beijing. Hong Kong's Hang Seng also put in a strong performance, advancing 0.6%, while Japan's Nikkei tacked on 0.3% on a weaker yen. Sitting out the rally, South Korea's Kospi finished a hair below breakeven following another ballistic missile test out of North Korea.

European stocks are reacting to yesterday's remarks from U.S. President Donald Trump, with banks strengthening on his promise to reduce regulations in the financial industry. Meanwhile, energy shares are higher on signs of tightening supplies. London's FTSE 100 has gained nearly 0.2% following a stronger-than-expected services purchasing managers index (PMI). France's CAC 40 is also up 0.2%, as traders react to the nation's second televised presidential debate. However, Germany's DAX was last trading 0.4% lower.

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