Dow Jones Industrial Average Futures Rise After Government Shutdown Avoided

Tech Stocks Flashing 1999 Dot-Com Signal

Josh Selway
May 1, 2017 at 9:02 AM
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Dow Jones Industrial Average (DJIA) futures are trading above fair value this morning, as stocks look to gain ahead of a big week of earnings. This morning, though, traders are cheering reports of a deal in Congress to avoid a government shutdown. Meanwhile, there's also a slew of economic data on the manufacturing sector set for release today, and Wall Street is digesting the first decline in the Fed-watched personal consumption expenditures (PCE) index in more than a year. For earnings, investors will keep their attention on the red-hot tech sector with a post-close earnings release from Advanced Micro Devices, Inc. (NASDAQ:AMD) on tap, while keeping an eye trained on tomorrow's quarterly report from Apple Inc. (NASDAQ:AAPL). Against this backdrop, the Dow, S&P 500 Index (SPX), and Nasdaq Composite (COMP) are all set to open higher. 

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


  • Tech stocks are flashing a signal that sounded just before the dot-com bubble burst.
  • Analysts: Shares of Alphabet Inc (NASDAQ:GOOGL) could rally another 30%. 
  • Why this Chinese internet stock got hit on Friday.
  • Plus, Twitter poised for more upside; Square eyes new highs; and DISH disappoints. 

stock futures today

Futures on the Dow Jones Industrial Average (DJIA) are 35.5 points above fair value. 

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 1,006,433 call contracts traded on Thursday, compared to 687,084 put contracts. The resultant single-session equity put/call ratio dipped to 0.68, while the 21-day moving average edged up to 0.67.
  2. Twitter Inc (NYSE:TWTR) will be in focus today, after CEO Jack Dorsey on Friday announced he purchased another 574,000 shares of the social media stock. Meanwhile, the Wall Street Journal yesterday reported that the company and Bloomberg are going to announce a new 24/7 streaming news channel for Twitter today. TWTR stock is set to add 3.6% at the open, as it tries to extend its post-earnings upside. 
  3. Jack Dorsey's other company, Square Inc (NYSE:SQ), could also be in focus today. The shares are up 3.5% in pre-market trading, which would put them in all-time-high territory. It's been a big year for SQ stock, up almost 34% year-to-date, and now the company is preparing to report earnings after the close on Wednesday. 
  4. Speaking of earnings, DISH Network Corp (NASDAQ:DISH) this morning released first-quarter results showing lower-than-expected revenue and sharp decline in subscribers. DISH stock is down 1.4% ahead of the open, as it tries to hold on to its 27% year-over-year advance. 
  5. The latest personal income and spending data come out today, as does the Markit purchasing managers manufacturing index (PMI), the Institute for Supply Management's (ISM) manufacturing index, and construction spending. For earnings, BroadSoft (BSFT), Cardinal Health (CAH), Chemours (CC), Community Health (CYH), Expeditors International of Washington (EXPD), GGP Inc (GGP), Noble Energy (NBL), and Tenet Healthcare (THC) will report. 

     

Buzz Stocks May 1

Overseas Trading

Japanese stocks settled higher today, lifted by solid earnings from Tokyo Electron and upbeat forecasts from Fujitsu and NTT Data. The strength in tech names easily offset weakness in energy, as oil prices slipped overnight. By the close, Japan's Nikkei was up 0.6%, with most other regional markets on holiday break.

European markets are also closed for International Workers Day, so the weekend election results in Italy won't yet be priced into equities. On Sunday, Matteo Renzi clinched a victory in the Democratic primary, mere months after he stepped down as prime minister following a failed constitutional reform bid.


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