Dow Jones Industrial Average Futures Shrug Off Post-OPEC Oil Slide

Call Buyers Should Target this Apple Supplier

May 25, 2017 at 9:11 AM
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Stocks are set to jump higher out of the gate this morning, with Dow Jones Industrial Average (DJIA) futures trading comfortably above fair value. The risk-on attitude comes after the Organization of the Petroleum Exporting Countries (OPEC) agreed to extend output cuts by nine months. However, July-dated crude futures have dropped 1.6% to trade at $50.54 per barrel, as traders were hoping for more ambitious action. On the data front, weekly jobless claims came in below expectations, with 234,000 people filing for unemployment benefits. Investors are also digesting a surprisingly upbeat round of earnings from the retail sector, with names like Best Buy Co Inc (NYSE:BBY) and Williams-Sonoma, Inc. (NYSE:WSM) making huge pre-market moves. Ahead of the bell, the Dow and its index peers are on pace for a sixth straight day of gains

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

  • Why Bernie Schaeffer believes this Apple supplier is a call buyer's dream. 
  • The vaccine results that had this biotech stock surging. 
  • Options traders are growing bullish ahead of GameStop earnings. 
  • Plus, Best Buy's huge pre-market move; another retailer set to sell off; and a drug stock up 35% ahead of the open. 

stock futures today

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 822,776 call contracts traded on Wednesday, compared to 510,187 put contracts. The resultant single-session equity put/call ratio moved up to 0.62, while the 21-day moving average stayed at 0.63.
  2. Best Buy stock is up 14.8% ahead of the open after the retailer crushed analysts' first-quarter estimates. The stock's pre-market gain has BBY shares hovering at their highest point in 11 years, and brings their 12-month gain to over 80% -- as they continue to burn the bears
  3. One retailer that isn't celebrating this morning is Signet Jewelers Ltd. (NYSE:SIG), with the stock down 4% ahead of the open due to poor first-quarter earnings results. This would put SIG shares at a four-year low. SIG stock was already down 42.2% year-to-date as of yesterday's close at $54.53. 
  4. Aerie Pharmaceuticals Inc (NASDAQ:AERI) is up 35.6% in electronic trading, thanks to positive drug trial results from its experimental combination treatment for glaucoma, known as Roclatan. The combination includes Aerie's primary drug, Rhopressa, which was the source of concern for the stock's struggles at the end of 2016. 
  5. The government report on imports and exports will be released today. Dallas Fed President Robert Kaplan and St. Louis Fed President James Bullard will speak in the evening. Big Lots (BIG), Burlington Stores (BURL), Costco Wholesale (COST), Deckers Outdoor (DECK), and Dollar Tree (DLTR) are some other retailers reporting earnings today. 

Buzz Stocks May 25

Overseas Trading

Asian stocks took their cues from Wednesday's record-setting session on Wall Street, with the major benchmarks closing in positive territory. Rising oil prices also boosted investor sentiment ahead of today's OPEC meeting. South Korea's Kospi hit an all-time peak, closing up 1.1% after the Bank of Korea kept its monetary policy unchanged. China's Shanghai Composite jumped 1.4% and Hong Kong's Hang Seng rose 0.8%, with the latter brushing off a credit downgrade at Moody's. Japan's Nikkei tacked on 0.4%.

European markets are modestly lower at midday, as oil prices retreat following news of OPEC's nine-month extension to supply cuts. Traders are also keeping a close eye on today's meeting between President Donald Trump and European Union (EU) leaders, as well as members of NATO. At last check, the German DAX is down 0.2% and the French CAC 40 is off 0.1%. London's FTSE 100 is also flirting with a 0.1% loss, following a downward revision to first-quarter gross domestic product (GDP).


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