Dow Jones Industrial Average Futures Signal Fourth Straight Day of Gains

Why Trump Headlines Can't Fully Explain the VIX Spike

by Josh Selway

Published on May 23, 2017 at 9:05 AM

Dow Jones Industrial Average (DJIA) futures are trading above fair value this morning, as investors consider the latest corporate earnings and speeches from regional Fed presidents. Specifically, Minneapolis Fed President Neel Kashkari, Philadelphia Fed President Patrick Harker, and Chicago Fed President Charles Evans will all speak throughout the day. Oil prices should also remain in focus, as Thursday's meeting of top oil producers approaches. At last check, July-dated crude futures were down 0.1% at $51.10 per barrel.

Stock traders are also keeping tabs on last night's deadly explosions in Manchester, which prompted U.K. officials to raise the terrorist threat level to "severe." Regardless, the Dow and its index peers look set to extend their win streaks to four. 

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


  • Why Trump headlines can't take all the blame for last week's VIX spike
  • How Raytheon options traders reacted to a multi-billion arms deal.  
  • Goldman weighed in on a preferred cloud stock pick.
  • Plus, Toll Brothers earnings top estimates; Momo stock is on pace for new highs; and analysts clash over Xilinx. 

stock futures today

Dow futures are trading more than 56 points above fair value. 

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 923,272 call contracts traded on Monday, compared to 496,667 put contracts. The resultant single-session equity put/call ratio moved down to 0.54, while the 21-day moving average edged down to 0.63.
  2. Toll Brothers Inc (NYSE:TOL) is up more than 3% in pre-market trading, thanks to a strong fiscal second-quarter earnings report. TOL stock was already trading at annual highs, and this move would mark its sixth straight quarter of post-earnings gains. 
  3. Chinese social media stock Momo Inc (ADR) (NASDAQ:MOMO) has been surging up the charts this year, and that rally is set to continue, with a better-than-expected first-quarter earnings report set to put the U.S.-listed shares in record-high territory. MOMO stock was already up 133% year-to-date, and yesterday hit an all-time high of $45.95. 
  4. Programmable chip stock Xilinx, Inc. (NASDAQ:XLNX) has been another hot property, touching a 16-year high of $67.75 yesterday. However, XLNX shares are down 3% in electronic trading, due to a downgrade to "market perform" from "outperform" at Wells Fargo. Elsewhere, SunTrust Robinson and BMO weighed in with price-target increases to $68 and $71, respectively. XLNX is set to open near $65, which marked its post-bull gap highs from late April through mid-May. 
  5. Cracker Barrel (CBRL), Diana Shipping (DSX), and Intuit (INTU) are some other names on today's earnings calendar. New home sales data will be released, too. 

stocks moving in premarket trading

Overseas Trading

It was a mixed finish in Asia, as traders digested news of a deadly bombing in northern England and oil prices retreated. In Japan, the Nikkei slid 0.3% as the yen rose on its safe-haven status. China's Shanghai Composite also closed lower, shedding 0.5%. On the flip side, South Korea's Kospi tacked on 0.3%, while Hong Kong's Hang Seng edged up 0.05%.

European stocks are trading higher at midday, brushing off the terrorist attack at an Ariana Grande concert in Manchester, which the Islamic State has since claimed responsibility for. While London's FTSE 100 is up 0.13%, the German DAX has added 0.6% after Ifo's business confidence index hit a record high this month, and factory activity grew at its fastest pace since April 2011. The French CAC 40 is also in positive territory after upbeat economic data, trading 0.8% higher after IHS Markit's preliminary purchasing managers index (PMI) notched a six-year peak.


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