Dow Jones Industrial Average Futures Sink on Trump Concerns

Market Signal Flashing for First Time in 22 Years

May 17, 2017 at 9:04 AM
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Dow Jones Industrial Average (DJIA) futures are trading sharply below fair value this morning, amid more drama out of Washington. Reports suggest President Trump asked recently fired FBI Director James Comey to end the investigation into former national security adviser Michael Flynn, though the White House has since denied these claims. Still, concerns that the political turmoil could stall Trump's agenda have stocks set for a lower open, with the Dow facing a triple-digit drop, while gold prices are on the rise amid a rush to "safe havens."  

Traders will also be digesting the latest from the earnings front. Most notably, Target stock is heading higher in pre-market trading thanks to strong results, while Dow component Cisco Systems is scheduled to release earnings after the close. Oil prices could also be in focus once again, with the regularly scheduled crude inventories set for release this morning. 

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


  • Schaeffer's Senior Quantitative Analyst Rocky White examines the stock market signal that just flashed for the first time in 22 years. 
  • Call buyers keep chasing this red-hot Apple supplier
  • Why Goldman Sachs just turned bearish on this energy stock
  • Plus, the restaurant stock set to gap higher; a big bull note for Apple; and the latest Amazon buzz. 

stock futures today

Futures on the Dow Jones Industrial Average (DJIA) are almost 105 points below fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 1.1 million call contracts traded on Tuesday compared to 616,836 put contracts. The resultant single-session equity put/call ratio dropped to 0.54, while the 21-day moving average stayed at 0.64.
  2. Restaurant stock Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) is on pace to open 18% higher this morning, thanks to a big first-quarter earnings beat. This comes after the company presented disappointing quarterly results last time around, and the pre-market move would put RRGB stock in annual-high territory. 
  3. Morgan Stanley is growing even more bullish on Apple Inc. (NASDAQ:AAPL), raising its price target to $177 from $161. This not only represents record-high territory for AAPL stock, but also marks a nearly 14% premium to last night's close at $155.47. 
  4. CNBC has reported that Amazon.com, Inc. (NASDAQ:AMZN) is hiring people to enter the pharmaceutical market. This supports Mark Cuban's assessment about the company's "enormous" growth potential. 
  5. American Eagle (AEO) and L Brands (LB) will also report earnings today.

Buzz Stocks may 17

Overseas Trading

Asian markets closed lower today, as political uncertainty in the U.S. dampened investor sentiment. Japan's Nikkei gave back 0.5% as the yen strengthened against the U.S. dollar. Elsewhere in the region, China's Shanghai Composite fell 0.3%, Hong Kong's Hang Seng finished down 0.2%, and South Korea's Kospi shed 0.1%.

Trump-related woes are weighing on European stocks, too, with financial shares among the biggest losers. At last check, London's FTSE 100 was off 0.1%, as the latest jobs data showed a decline in real wage growth -- though the unemployment rate fell to its lowest level since 1975. Rounding things out, the French CAC 40 is flirting with a 0.5% loss and the German DAX is down 0.4%. 

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