Dow Jones Industrial Average Futures Rise; Defense Stocks, Fed Speeches in Focus

Analyst: 2 Reasons to Buy This Telecom Stock

May 22, 2017 at 8:59 AM
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Dow Jones Industrial Average (DJIA) futures are trading above fair value, as investors keep an eye on President Donald Trump's overseas trip and an extended rally in oil prices. Defense stocks -- including blue chip Boeing Co (NYSE:BA) -- are headed higher after Trump inked a massive weapons deal with Saudi Arabia. Meanwhile, with the Organization of Petroleum Exporting Countries (OPEC) set to meet on Thursday, June-dated crude futures are up 1.5% at $51.06 per barrel, amid hopes for extended supply cuts. There's little in the way of economic data today, but stocks could react to speeches from Minneapolis Fed President Neel Kashkari and Philadelphia Fed President Patrick Harker. Elsewhere, Ford Motor Company (NYSE:F) is reportedly replacing CEO Mark Fields, news that has the auto stock up more than 2% ahead of the open. The Dow, S&P 500 Index (SPX), and Nasdaq Composite (COMP) are now searching for a third straight win, following last week's nasty stock sell-off

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


  • Analyst: 2 reasons to buy this telecom stock
  • The retail stock that managed its best day in almost two years. 
  • As volatility picks up, read how put options could help protect your portfolio. 
  • Plus, a defense stock set for new highs; ugly drug data from Amgen; and a rallying Chinese energy stock. 

stock futures today

Futures on the Dow Jones Industrial Average (DJIA) are trading 33 points above fair value. 

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 1.1 million call contracts traded on Friday, compared to 684,075 put contracts. The resultant single-session equity put/call ratio moved down to 0.62, while the 21-day moving average stayed at 0.64.
  2. Defense stock Lockheed Martin Corporation (NYSE:LMT) is set to benefit from the deal with Saudi Arabia, with the shares up 2.6% ahead of the open, which would put them in record-high territory. Despite some downbeat tweets from President Trump earlier in the year, LMT stock is up 9.1% in 2017, and hit an all-time high of $276.64 about a month ago. 
  3. Amgen, Inc. (NASDAQ:AMGNsaid it does not expect its osteoporosis drug, romosozumab, to be approved by the Food and Drug Administration (FDA) this year, due to a high rate of side effects in a late-stage study. AMGN stock is now set to take a nearly 3% hit when the market opens, bringing more pain to an equity that was trading above $180 per share in mid-March. 
  4. Another pre-market mover is Chinese photovoltaics manufacturer JinkoSolar Holding Co., Ltd. (NYSE:JKS). JKS stock jumped 6.6% on Friday, and is up another 3.3% in pre-market trading. The shares hit a three-year low back in November, but have been grinding higher ever since.
  5. Agilent (A) and Cheetah Mobile (CMCM) will report the first earnings batch of the week.

Buzz Stocks May 22

Overseas Trading

Asian markets ended mostly higher today, despite another weekend missile test by North Korea. Strength in oil prices set the tone, with most market-watchers anticipating an extension to production cuts at this week's OPEC meeting. In Tokyo, auto parts supplier Takata extended its breakout rally to a second session, bolstered by last week's airbag settlement with several major automakers. By the close, Hong Kong's Hang Seng was up 0.9%, South Korea's Kospi gained 0.7%, and Japan's Nikkei rose 0.5%. China's Shanghai Composite, meanwhile, lost 0.5%.

Stocks in Europe are mixed at midday. The chemicals group is in focus following a merger announcement from Clariant and Huntsman, which are both trading comfortably higher. However, traders are keeping a watchful eye on today's meeting of eurozone finance ministers, where Greek debt aid will be discussed. At last check, the German DAX is down 0.3%, the French CAC 40 is 0.2% higher, and London's FTSE 100 has gained 0.6%.

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