Dow Jones Industrial Average Futures Gain Ahead of Fed, Apple Earnings

What to Make of the Latest VIX Low

May 2, 2017 at 9:01 AM
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Dow Jones Industrial Average (DJIA) futures are trading cautiously higher, as Wall Street prepares for a post-close earnings report from tech giant Apple Inc. (NASDAQ:AAPL). In the meantime, fellow Dow components Pfizer Inc. (NYSE:PFE) and Merck & Co., Inc. (NYSE:MRK) will be in focus after their earnings releases this morning, though both stocks are edging lower ahead of the open. Traders will also be paying attention to the Fed's two-day policy-setting meeting, which kicks off today, as well as auto sales for April. As such, the Dow will look to bounce back from yesterday's pullback, while the Nasdaq Composite (COMP) tries to extend its streak of record highs. 

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


  • What to make of the latest VIX low, according to Schaeffer's Senior Equity Analyst Joe Bell, CMT. 
  • The technical levels to watch before Akamai Technologies, Inc. (NASDAQ:AKAM) earnings. 
  • It may be time to buy call options on this IT stock. 
  • Plus, another huge move from AMD stock; Coach stock set to rally; and Shopify cools off. 

stock futures today

Futures on the Dow Jones Industrial Average (DJIA) are 13.5 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. Advanced Micro Devices, Inc. (NASDAQ:AMD) is down 11.8% in pre-market trading, after the company's first-quarter earnings results. Although the chipmaker matched analysts' revenue estimates, its gross margins forecast disappointed. Macquarie responded with a downgrade to "underperform" from "neutral," while cutting its price target to $10 from $14. Looking back, this outsized post-earnings move would be just more of the same for AMD stock
  3. Coach stock is also ready to make a big move after earnings, but to the upside, with the shares gaining 7.3% before the opening bell thanks to an earnings beat. Recent call buyers will be pleased to see COH stock ready to top the $40 level today. 
  4. E-commerce specialist Shopify Inc (US) (NYSE:SHOP) is down 3.3% in pre-market trading, even though the company reported a smaller-than-expected first-quarter loss, and raised its full-year revenue forecast. On the other hand, Shopify stock was already sporting a year-over-year gain of 142%. 
  5. ConocoPhillips (COP), CVS Health (CVS), Etsy (ETSY), FireEye (FEYE), First Solar (FSLR), Gilead Sciences (GILD), MasterCard (MA), Mosaic (MOS), Mylan (MYL), Myriad Genetics (MYGN), Terex (TEX), Twilio (TWLO), and Weight Watchers (WTW) are some other companies reporting earnings.

     

Buzz Stocks May 2

Overseas Trading

A global rally in tech stocks boosted most Asian markets today. Japan's Nikkei also got a lift from a cooling yen, settling the session up 0.7% ahead of the Golden Week holiday. Elsewhere, South Korea's Kospi came within a chip-shot of notching a new all-time high, ending up 0.7%, while Hong Kong's Hang Seng added 0.3%. China's Shanghai Composite bucked the regional bullish trend, shedding 0.4% after the Caixin manufacturing purchasing managers index (PMI) indicated a slowdown in factory activity last month.

European stocks are higher at midday amid a well-received batch of corporate earnings reports, including one from oil giant BP. On the economic front, the number of unemployed throughout the eurozone fell by its smallest margin in more than a year, while factory activity in the currency bloc hit its highest reading since 2011 in April. Additionally, Greece signed a deal with international creditors to unlock its next tranche of aid. Against this optimistic backdrop, London's FTSE 100 is up 0.5% after the country's PMI reading hit a three-year peak, the French CAC 40 is 0.4% higher, and the German DAX has added 0.2%.

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