Dow futures are trading below fair value after the latest flood of earnings
Dow Jones Industrial Average (DJIA) futures are trading below fair value this morning, as investors continue to consider the firing of FBI Director
James Comey. Stocks could react to this morning's economic data, with weekly jobless claims coming in at 236,000, besting the 245,000 expected. Plus, the producer price index (PPI) for April topped expectations. As such, the case for a June rate hike from the Fed continues to build. Traders are also digesting a potential post-earnings sell-off from Snap stock, which could halt the
Nasdaq Composite's (COMP) five-day winning streak.
Continue reading for more on today's market, including:
- Behind the surge in call buying on this Russian ETF.
- The retail stock that lost one-third of its value.
- Why shares of Opko Health Inc. (NASDAQ:OPK) could be due for more pain.
- Plus, SNAP's pre-market move; 2 bombing retailers; and the Dow stock on the rise.
Futures on the Dow Jones Industrial Average (DJIA) are 38 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 964,876 call contracts traded on Wednesday, compared to 596,428 put contracts. The resultant single-session equity put/call ratio moved down to 0.62, while the 21-day moving average stayed at 0.68.
- Shares of SNAP were last seen 22% lower in electronic trading, after the company's quarterly revenue fell well short of expectations. This would have the Snapchat parent trading near $18, which would be its lowest point since going public back in March. Luckily, SNAP options traders were scooping up puts ahead of the event.
- Retail stocks are also struggling this morning, with Kohl's Corporation (NYSE:KSS) facing a 3.4% drop at the open, and Macy's Inc (NYSE:M) down almost 10%. For KSS stock, it's a drop in same-store sales that's set to weigh on the shares, while a major decline in earnings is hurting Macy's stock.
- Merck & Co., Inc. (NYSE:MRK) is moving higher ahead of the open, after the Food and Drug Administration (FDA) approved its Keytruda drug, in combination with chemotherapy, for the treatment of lung cancer. MRK stock has been hot in recent week, and if the 2.6% pre-market jump comes to fruition, it'd be its best open since March 10.
- CyberArk Software (CYBR), Royal Gold (RGLD), and Teva Pharmaceutical (TEVA) are also in the earnings spotlight today, and New York Fed President William Dudley will speak.
Overseas Trading
Asian benchmarks rose in step with oil prices. South Korea's Kospi led the way with its 1.2% gain to close at a record high, while Hong Kong's Hang Seng added 0.4% and Japan's Nikkei rose 0.3%. Elsewhere, China's Shanghai Composite bounced off a seven-month low to close up 0.3%.
European stocks are lower at midday, after the European Union (EU) upwardly revised its 2017 growth forecast for the eurozone, but cited possible risk from the Brexit and Trump policies. The EU also raised its 2017 growth forecast for the U.K., though the Bank of England (BoE) lowered its full-year gross domestic product (GDP) projection while also maintaining its current monetary policy. At last check, the French CAC 40 is off 0.5% and the German DAX is down 0.3%. London's FTSE 100 has edged down 0.03%.