Dow futures are just below fair value, after this morning's strong payrolls report
Dow Jones Industrial Average (DJIA) futures are trading below fair value this morning, but are well off their pre-market lows, while the
Nasdaq Composite (COMP) and
S&P 500 Index (SPX) are both poised to open higher. Stocks are reacting to this morning's nonfarm payrolls report, with the U.S. economy adding 211,000 jobs in April, versus 185,000 expected -- more than doubling the number of jobs added in March, and bolstering expectations for a June rate hike. Also, the unemployment rate dropped to 4.4%, the lowest point since 2007. Still, the Dow has been trading in a tight range all week, and with the next round of the
French election coming on Sunday, traders may exercise caution yet again.
Continue reading for more on today's market, including:
- 2 Apple suppliers screaming "buy."
- How we helped options traders triple their money on this energy stock.
- Call buyers are zeroing in on Snap Inc (NYSE:SNAP) before its inaugural earnings release.
- Plus, analysts predict higher highs for Activision; Universal Display blows past estimates; and a surging fiber optics stock.
Futures on the Dow Jones Industrial Average (DJIA) are 2.5 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 848,531 call contracts traded on Thursday, compared to 651,056 put contracts. The resultant single-session equity put/call ratio moved up to 0.77, while the 21-day moving average edged up to 0.68.
- Video game stock Activision Blizzard, Inc. (NASDAQ:ATVI) has been one of the best SPX stocks in 2017, adding 47% to trade at $53.10, while hitting a record high of $53.39 earlier this week. The stock was last seen edging higher in pre-market trading, following the company's strong first-quarter results. Analysts are cheering the report, as Jefferies raised its price target to $68 from $55, and Cowen upped its target to $59.
- Universal Display Corporation (NASDAQ:OLED) has been another big winner in 2017, and it looks like more gains are ahead. The shares are set to add 15.5% this morning, thanks to the company's first-quarter earnings beat and solid full-year sales outlook. As of last night's close at $89.95, OLED stock had already rallied roughly 88% since its 52-week low in October, hitting a record high of $92.30 on April 27 -- a level it should easily top today.
- Another pre-market winner is Applied Optoelectronics Inc (NASDAQ:AAOI), with the fiber optics specialist up 6.8% in electronic trading, thanks to much better-than-expected first-quarter results. At $46.81, AAOI stock has pulled back some since hitting a record high of $60.19 on March 27, but still boasts a 12-month gain of over 340%.
- Berkshire Hathaway (BRK.A), Cigna (CI), E.W. Scripps (SSP), and MSG Networks (MSGN) are on the earnings slate today. Next week, Walt Disney (DIS) and NVIDIA earnings highlight the schedule.
Overseas Trading
Asian stocks settled a low-volume session in the red, with markets in Japan and South Korea shuttered for holiday. Specifically, China's Shanghai Composite and Hong Kong's Hang Seng both gave back 0.8%, amid pressure from declining commodity prices.
European markets are mixed ahead of Sunday's presidential election in France, with traders keeping a close eye on bouncing energy and mining stocks. The French CAC 40 was last seen trading up 0.07% -- on track for its highest close in more than nine years. Elsewhere, the German DAX is off 0.3%, and London's FTSE 100 is trading down 0.03%.