Earnings, Tax Talk Ignite Dow Jones Industrial Average Futures Rally

Why the VIX Could Still Take Off

Apr 25, 2017 at 9:04 AM
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It's setting up to be a huge day on Wall Street, as Dow Jones Industrial Average (DJIA) futures are trading well above fair value once again. With this past weekend's French election results boosting markets yesterday, stocks look poised to keep the rally alive amid expectations of a tax reform announcement from the Trump administration tomorrow. Of course, earnings are also in focus, with Dow components 3M Co (NYSE:MMM), Caterpillar Inc. (NYSE:CAT), DuPont (NYSE:DD), and McDonald's Corporation (NYSE:MCD) all set for strong gains following their quarterly reports. Futures for all three major U.S. indexes are now pointing to big gains at the open, with the Nasdaq Composite (COMP) on pace for a fresh record high. 

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


  • Schaeffer’s Senior V.P. of Research Todd Salamone explains why the CBOE Volatility Index (VIX) could still take off.
  • Why Schlumberger Limited (NYSE:SLB) stock's slump may just be getting started. 
  • The analyst note that added fuel to the fire for this surging European bank stock
  • Plus, big pre-market moves for blue-chip stocks; Express Scripts nosedives; and EA stock eyes another high. 

stock futures today

Futures on the Dow Jones Industrial Average (DJIA) are 111 points above fair value. 

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 893,517 call contracts traded on Monday, compared to 544,187 put contracts. The resultant single-session equity put/call ratio dipped to 0.61, while the 21-day moving average stayed at 0.66.
  2. Looking closer at this morning's post-earnings moves, shares of CAT are set for the biggest gain, up nearly 6%, after the company torched Wall Street's top and bottom line estimates. 3M also topped expectations, and MMM shares looking at a 1.7% jump and fresh all-time highs at the open. For McDonald's stock, shares of the fast-food giant are up 2.7% ahead of the open, ready to knock out a new record high. DD, meanwhile, is up 1.7% in pre-market trading, thanks to better-than-expected earnings. 
  3. It looks like more losses are set to come through for pharmacy benefits specialist Express Scripts Holding Company (NASDAQ:ESRX). While the company topped first-quarter earnings estimates, it said it's likely to lose its top client, Anthem Inc (NYSE:ANTM). ESRX stock is pointed 11.9% lower in pre-market trading. 
  4. Electronic Arts Inc. (NASDAQ:EA) is another hot stock this morning, up 1.7% ahead of the open and ready to take out its record high from yesterday, following a price-target hike to $90 from $85 at Cowen. EA stock has rallied 40% year-over-year to trade at $92.81. 
  5. New home sales, the Case-Shiller home price index, and consumer confidence data hit the Street today. For earnings, Chipotle (CMG), Lockheed Martin (LMT), and Texas Instruments (TXN) are some of the other names reporting. 

     

Buzz Stocks April 25

Overseas Trading

Asian stocks continued to build on their positive momentum from Monday's global relief rally. This, despite North Korea's live-fire drill to celebrate the founding of the country's military -- and as a show of strength as tensions with the U.S. and her regional allies run high. Staying on the peninsula, South Korea's Kospi jumped 1.1% and hit a two-year high, bolstered by a six-month peak in consumer confidence this month. Japan's Nikkei also soared 1.1%, while Hong Kong's Hang Seng outpaced its peers, surging 1.3%. And, unlike yesterday, Chinese markets took part in the rally, with the Shanghai Composite tacking on 0.2%.

Tailwinds from Sunday's French election results continue to spur European stocks higher, as well, with the healthcare sector leading the way. After its best day in years, the French CAC 40 was last seen up 0.4%, as business sentiment held steady from March into April, as expected. London's FTSE 100 is currently 0.2% higher, as data suggests the nation's wage gap is narrowing. Separately, U.K. public borrowing dropped to its lowest level in nearly 10 years. Rounding things out, the German DAX has edged up just 0.1%, after notching a record closing high yesterday.

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