Dow futures are trading above fair value despite Pence's warning to North Korea
Dow Jones Industrial Average (DJIA) futures are trading above fair value this morning, signaling a positive open for stocks despite ongoing
geopolitical concerns. Specifically, North Korea flaunted its bomb arsenal in a parade over the weekend, and U.S. Vice President Mike Pence responded to the country's failed missile launch by saying the "era of strategic patience" is over. Investors are also prepping for earnings season, with Netflix, Inc. (NASDAQ:NFLX) and United Continental Holdings Inc (NYSE:UAL) set to report after the close today. Against this backdrop, the
Dow will look to bounce back from last week's losses, while the soaring CBOE Volatility Index (
VIX) also remains in focus.
Continue reading for more on today's market, including:
- The little-known healthcare stock that could enjoy a short-covering rally.
- Analysts: This fiber optics stock is headed for record highs.
- It's a great time to buy call options on outperforming Ulta stock.
- Plus, Apple's self-driving car buzz; a huge healthcare flop; and the must-see uranium stock.
Futures on the Dow Jones Industrial Average (DJIA) are almost 54 points above fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 733,434 call contracts traded on Thursday, compared to 703,632 put contracts. The resultant single-session equity put/call ratio surged to 0.96, while the 21-day moving average moved down to rose to 0.66.
- Apple stock is edging higher in pre-market trading, amid reports the company has obtained a permit to test self-driving cars in California. While the shares hit a record high of $145.46 on April 5, they've closed six of the past seven sessions in the red.
- Incyte Corporation (NASDAQ:INCY) has been a long-time outperformer on the charts, touching an all-time high of $153.15 roughly one month ago. However, INCY stock is set to lose nearly 11% at the open, after the FDA failed to approve the company's rheumatoid arthritis treatment, which it was developing with Eli Lilly and Co (NYSE:LLY).
- Uranium stock Cameco Corp (USA) (NYSE:CCJ) is up 7% in electronic trading, thanks to heightened military tensions between the U.S. and North Korea. As of Friday's close at $11.11, the shares are up 44% since the end of October.
- Empire State manufacturing survey, the NAHB housing market index, and Treasury International Capital (TIC) data come out today. For earnings, Barracuda Networks (CUDA) and J.B. Hunt Transport (JBHT) will report.
Overseas Trading
It was a mixed start to the week in Asia, following North Korea's failed missile launch over the weekend. This came ahead of U.S. Vice President Mike Pence's arrival in South Korea, as part of his four-nation tour of East Asian allies, helping the Kospi to a 0.5% gain. Japan's Nikkei also ended higher, adding 0.1%, while shrugging off a stronger yen. Elsewhere, China's Shanghai Composite plunged 0.8%, after a top securities official urged stock exchanges to tighten regulation and crack down on manipulation. His comments offset a batch of strong economic data, as gross domestic product (GDP) rose a better-than-expected 6.9% year-over-year in the first quarter, while industrial output last month grew at its fastest pace since December 2014. Elsewhere, Hong Kong's Hang Seng was shuttered in celebration of Easter, as are markets throughout Europe.