Dow Jones Industrial Average Futures Jump After ECB Weighs in on Draghi

What This Rare Oil Signal Means for Stocks

Karee Venema
Jun 28, 2017 at 9:10 AM
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Dow Jones Industrial Average (DJIA) futures are trading above fair value, after the European Central Bank (ECB) said markets overreacted to ECB President Mario Draghi's hawkish comments on Tuesday -- which indicated the central bank was ready to scale back its quantitative easing program. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also higher, as tech stocks look to bounce back. Elsewhere, data showed the U.S. trade deficit fell 1.8% to $65.9 billion in May, while oil prices could snap a four-day winning streak. August-dated crude futures are trading down 0.4% at $44.06 per barrel, ahead of this morning's weekly inventories update.

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


  • Schaeffer's Senior Quantitative Analyst Rocky White uncovers what this rare oil signal means for stocks. 
  • This industrial stock is higher ahead of the bell, following its best trading day ever.
  • This drug stock's successful setup led to a big win for bullish options traders.
  • Plus, Blue Apron lowers its IPO expectations; Spectranetics surges on a buyout bid; and Toshiba sues Western Digital.

us stock index futures june 28

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 826,466 call contracts traded on Tuesday, compared to 497,545 put contracts. The single-session equity put/call ratio fell to 0.60, and the 21-day moving average remained at 0.63.
  2. Meal delivery firm Blue Apron has reduced the range of its planned initial public offering (IPO) to $10-$11 per share, down from a previously projected $15-$17 share price. The offering is expected to price today ahead of Thursday's debut on the New York Stock Exchange, where the stock will trade under the ticker APRN.
  3. Spectranetics Corp (NASDAQ:SPNC) has popped higher in pre-market trading after Philips agreed to acquire the medical device firm for $38.50 per share in cash, representing a 27% premium to SPNC's Tuesday close at $30.40. SPNC, which only recently broke out above pressure in the round $30 region, is hovering just shy of the offer price ahead of the open.
  4. Toshiba said it plans to sue Western Digital Corp (NASDAQ:WDC) for roughly $1.1 billion, after the latter resubmitted a bid for the former's chip unit. Toshiba rebuffed an initial bid from partner WDC in favor of a consortium of investors, and is now claiming interference on the part of the U.S.-based tech firm. WDC stock is down 0.8% ahead of the bell, but could find support near $90 -- home to its 10-week moving average.
  5. Pending homes sales are due today. General Mills (GIS), Pier 1 Imports (PIR) and Paychex (PAYX) will report earnings.

Buzz Stocks June 28

Overseas Trading

Asian stocks finished lower today. The Chinese Shanghai Composite lost 0.5%, and Hong Kong's Hang Seng fell 0.6%, as traders digested comments from Premier Li Keqiang. Specifically, Li insisted China could meet its economic goals in the year ahead, and said risks to financial markets were under control. Stocks in Japan also suffered broad losses despite a weaker yen, sending the Nikkei 0.5% lower. Meanwhile, South Korea's Kospi gave back 0.4%. 

European benchmarks are hovering near breakeven at midday, with the euro retreating after the ECB weighed in on Draghi. In France, the CAC 40 is up 0.03%, after consumer confidence in June hit the highest in 10 years. London's FTSE 100 is 0.01% higher, while Germany's DAX is down 0.2%. 


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