A strong earnings reaction from Deere stock could provide a lift to the market
Stocks are looking for a strong finish to the week, with
Dow Jones Industrial Average (DJIA) futures trading above fair value this morning. While some jitters likely remain following Wednesday's huge
stock market sell-off, a big earnings beat from heavy equipment giant Deere could lift investor confidence. Meanwhile, oil prices continue to rise on hopes of extended production cuts, with the Organization of the Petroleum Exporting Countries (OPEC) set to meet on Thursday. At last check, June-dated crude futures were up another 1.5% at $50.10 per barrel. Still, the Dow,
S&P 500 Index (SPX), and
Nasdaq Composite (COMP) are all well on pace to close the week in the red.
Continue reading for more on today's market, including:
- History suggests you shouldn't short stocks -- or the dollar -- just yet.
- The biotech stock that doubled in value yesterday.
- Wall Street is growing bearish on this solar stock.
- Plus, the semiconductor play that keeps soaring; a software stock up 11%; and an auto parts stock that won't stop.
Futures on the Dow Jones Industrial Average (DJIA) are trading 43 points above fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1 million call contracts traded on Thursday, compared to 734,306 put contracts. The resultant single-session equity put/call ratio moved down to 0.70, while the 21-day moving average stayed at 0.64.
- One stock that's benefited tremendously from the surge in the semiconductor sector is manufacturing equipment provider Applied Materials, Inc. (NASDAQ:AMAT). The shares hit a 16-year high of $45.08 on May 16, and boast a 12-month rally of 120% -- which they're set to add to this morning. Specifically, AMAT stock is up another 2% in electronic trading, after the company reported a record-breaking quarter. A number of analysts have since raised their price targets.
- Software stock Autodesk, Inc. (NASDAQ:ADSK) is set to surge 11.5% this morning, thanks to strong quarterly results and a subsequent round of bullish analyst attention. ADSK stock was already up 66% year-over-year, and just hit a record high of $98.05 on May 16.
- Sorl Auto Parts, Inc. (NASDAQ:SORL) is another stock moving higher in pre-market trading, as the brake systems manufacturer looks to stay hot. The shares are up another 4% ahead of the open, as they continue to gain following an earnings beat earlier this week. SORL stock closed Thursday at $6.91, after starting the year trading near $3 a share.
- St. Louis Fed President James Bullard will speak this morning, while Campbell Soup (CPB) and Foot Locker (FL) round out the earnings calendar. Next week, retail earnings will once again be in focus, as will the Fed's meeting minutes.
Overseas Trading
Asian markets closed higher today, bouncing back after a week of sharp losses. In Japan, automakers caught a lift after several major car companies reached a settlement over their use of defective Takata air bags -- which helped the Nikkei close up 0.2%. Other indexes followed suit, with Hong Kong's Hang Seng adding 0.2%, South Korea's Kospi edging up 0.07%, and China's Shanghai Composite eking out a 0.03% gain.
European stocks are in recovery mode at midday, with auto and mining stocks among the biggest gainers. At last check, the French CAC 40 is up 0.5%, London's FTSE 100 is trading 0.4% higher, and the German DAX has tacked on 0.2% after a report showed producer prices rose at the fastest rate in five years last month.