Goldman, JNJ Earnings Weigh on Dow Jones Industrial Average Futures

When to Close That Long Bond Trade

Apr 18, 2017 at 9:06 AM
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Dow Jones Industrial Average (DJIA) futures are trading below fair value this morning, as stocks are set to react to corporate earnings and the latest geopolitical developments. A number of Dow stocks will be in focus today, with Goldman Sachs Group Inc (NYSE:GS) and Johnson & Johnson (NYSE:JNJ) edging lower after their quarterly reports, though UnitedHealth Group Inc (NYSE:UNH) is headed higher after an earnings beat and upwardly revised forecast. Fellow Dow component IBM Corp. (NYSE:IBM), meanwhile, will release earnings after the close. Traders will also be keeping an eye trained overseas, with U.K. Prime Minister Theresa May calling for a snap election, the first round of voting in the French elections approaching this weekend, and U.S. Vice President Mike Pence continuing his trip through the Asia-Pacific region with a visit to Japan, shoring up support against North Korea.  

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

  • 2 oil stocks testing key technical levels.  
  • Schaeffer's Senior V.P. of Research Todd Salamone on when to close that long bond trade
  • How analysts are turning bullish on Twitter stock ahead of earnings.  
  • Plus, Netflix set to disappoint volatility traders; analysts hand Dish a downgrade; and the bank stock ready to reward options bulls. 

stock futures today

Futures on the Dow Jones Industrial Average (DJIA) are almost 38 points below fair value. 

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 664,972 call contracts traded on Monday, compared to 420,194 put contracts. The resultant single-session equity put/call ratio sank to 0.63, while the 21-day moving average stayed at 0.66.
  2. Netflix stock is pointed higher in electronic trading, after the company announced a first-quarter earnings beat, and an upbeat outlook for subscribers in the current quarter. At the same time, NFLX shares' 1.2% pre-market move is far from the post-earnings swing options traders were expecting. 
  3. On Monday, shares of satellite TV provider DISH Network Corp (NASDAQ:DISH) dropped nearly 6%, possibly due to the company's heavy spending in the Federal Communication Commission's (FCC) latest spectrum auction. This morning, Macquarie downgraded DISH stock to "neutral," and lowered its price target to $61 from $70. 
  4. Bank of America Corp (NYSE:BAC) call buyers could be cheering this morning, as the stock is set to gain thanks to the company's stronger-than-expected rise in quarterly profit. BAC shares are looking at a 1.5% jump at the open, which would add to their nearly 63% year-over-year advance. 
  5. Housing starts will be released, along with the latest industrial production data. Elsewhere, Kansas City Fed President Esther George will speak. Charles Schwab (SCHW), GNC (GNC), Harley-Davidson (HOG), Intuitive Surgical (ISRG), Lam Research (LRCX), Navient (NAVI), and Progressive (PGR) will also present earnings today.


Buzz Stocks April 18

Overseas Trading

Asian markets closed mixed, as attention turned to U.S. Vice President Mike Pence's meeting with Japanese Prime Minister Shinzo Abe -- with the former promising, "We will not rest and will not relent until we obtain the objective of a denuclearized Korean Peninsula." Amid the talks, Japan's Nikkei added nearly 0.4%, as the yen weakened against the dollar, and South Korea's Kospi edged 0.1% higher. On the other hand, China's Shanghai Composite fell 0.8%, and Hong Kong's Hang Seng plunged 1.4% after being closed on Friday and Monday for the Easter weekend.

European stocks are struggling after U.K. Prime Minister Theresa May called for a snap general election in early June, hoping to strengthen her position in Parliament ahead of upcoming Brexit talks. The surprise move boosted the pound and sterling, but sent London's FTSE 100 spiraling 1.7% lower -- on pace for its largest percentage loss since June 2016. Elsewhere, the German DAX and French CAC 40 have tumbled 0.6% and 1.2%, respectively, with mining stocks leading the way south.


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