Dow Jones Industrial Average Futures Digest Big Bank Earnings, Retail Sales

4 Signs Stocks Are Climbing a Wall of Worry

Jul 14, 2017 at 9:13 AM
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Dow Jones Industrial Average (DJIA) futures are trading near Thursday's record closing price, as traders get blasted with economic data and bank earnings. On the economic side, retail sales fell 0.2% in June -- the second straight monthly decline -- while the consumer price index (CPI) was flat. Industrial production data is also on tap this morning, with a speech from Dallas Fed President Robert Kaplan set to kick off at the opening bell.

Meanwhile, JPMorgan Chase, Citigroup, and Wells Fargo all turned in earnings beats, but it seems optimism was priced into the bank stocks ahead of the results, with the financial shares lower in electronic trading. Nevertheless, the Dow, S&P 500 Index (SPX), and Nasdaq Composite (COMP) are all on pace to close with a weekly win.

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

  • 4 signs stocks are climbing a wall of worry.
  • The Uber deal that had this Russian tech stock rallying. 
  • How options traders doubled their money with Johnson & Johnson calls.  
  • Plus, the cybersecurity stock down 20% pre-market; Snap shares sink; and Monsanto gets dealt a regulatory blow.

us stock index futures july 14

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 868,563 call contracts traded on Thursday, compared to 541,563 put contracts. The single-session equity put/call ratio rose to 0.62, and the 21-day moving average stayed at 0.64.
  2. Shares of CyberArk Software Ltd (NASDAQ:CYBR) are bracing for a nearly 20% plunge out of the gate -- set to open at a 14-month low -- after the cybersecurity firm once again lowered its second-quarter guidance. A round of bearish brokerage notes, including downgrades to the equivalent of a "hold" at Deutsche Bank and J.P. Morgan Securities, is only stoking the bearish flames.
  3. Snapchat parent Snap Inc (NYSE:SNAP) was slapped with another downgrade from one of its lead undewriters. Cowen and Co lowered its rating on SNAP stock to "market perform" from "underperform," and its price target to $17 from $21. One day after Stifel said Snap's technical struggles were an "opportunity," the shares are down 2.2% in pre-market trading.
  4. Tennessee has become the fourth U.S. state to restrict the use of Monsanto Company's (NYSE:MON) pesticide, dicamba, saying the weed killer is damaging other crops when not properly sprayed. After closing last night at $116.48, MON stock is trading down modestly ahead of the bell.
  5. Earnings will pick up in a big way next week, with reports from Netflix and several Dow components on the docket.

Buzz Stocks July 14

Overseas Trading

Stocks in Asia ended higher today, with sentiment boosted by the Dow's record finish on Thursday. Traders shrugged off a downturn in oil prices, while Tokyo stocks were supported by a cooling yen. By the close, South Korea's Kospi and Hong Kong's Hang Seng each rose 0.2%, China's Shanghai Composite edged up 0.1%, and Japan's Nikkei tacked on 0.09%.

European markets are little changed at midday, with trading volume extremely light in Paris amid the Bastille Day holiday. Despite the tepid price action today, most regional indexes are on pace for robust weekly gains. At last check, France's CAC 40 is up 0.1%, the German DAX is 0.01% higher, and London's FTSE 100 is off 0.3%.

 

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