Dow Jones Industrial Average Futures Signal a Positive Start

Nasdaq Streaks: When Size Matters

Jul 19, 2017 at 9:05 AM
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Dow Jones Industrial Average (DJIA) futures are trading just above fair value, following yesterday's earnings-induced slide. Today's muted pre-market action comes even with Dow stock IBM trading nearly 3% lower after Big Blue's revenue miss. Stock traders are also digesting a strong reading on June housing starts and permits, while August-dated crude futures are trading up 0.2% at $46.50 per barrel ahead of this morning's domestic inventories update.

Futures on the S&P 500 Index (SPX) and Nasdaq Composite (COMP) are also higher, putting both indexes on track to open around record highs. Another win today would make it nine in a row for the tech-heavy COMP -- extending its longest stretch of consecutive gains since early 2015.
Continue reading for more on today's market, including:

  • Schaeffer's Senior Quantitative Analyst Rocky White reveals when size matters with it comes to the Nasdaq winning streak.
  • QUALCOMM stock's negative earnings history isn't scaring off options bulls.
  • Implied volatility ramped up as Chipotle shares spiraled. 
  • Plus, Morgan Stanley shares jump after earnings; and while this drug stock is up 27% on solid data, its rival is eyeing a steep drop at the open.

us stock index futures july 19

5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 911,208 call contracts traded on Tuesday, compared to 561,487 put contracts. Both the single-session equity put/call ratio and the 21-day moving average arrived at 0.62.
  2. Morgan Stanley (NYSE:MS) reported per-share earnings of 87 cents for the second quarter, topping analysts' estimates. In addition, the company's quarterly sales beat expectations, and the firm upped its dividend by 25%. As a result, MS stock is headed for a gain of 3.4% out of the gate -- breaking the recent string of poorly received bank earnings -- and could test resistance in the $47 area, home to the stock's post-financial crisis highs. MS closed Tuesday at $45.14.
  3. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) said three combinations of its cystic fibrosis treatment showed significant improvements in the lung function of patients. As a result, no fewer than three brokerage firms upgraded VRTX stock, with even more lifting their price targets. After closing yesterday at $132.16, VRTX shares are pointed 27% higher in pre-market trading, and will likely assail record heights.
  4. On the other hand, Vertex rival Galapagos NV (ADR) (NASDAQ:GLPG) is reeling after the upbeat drug data. GLPG shares are pointed 6.3% lower ahead of the bell, and Morgan Stanley analysts added salt to the proverbial wound, cutting their price target on the stock to $87 from $93. GLPG finished at $77.49 on Tuesday, down 13.2% over the past three months.
  5. The regularly scheduled crude inventories update will hit the Street today. American Express (AXP), Alcoa (AA), Canadian Pacific (CP), Kinder Morgan (KMI), QCOM, Sarepta Therapeutics (SRPT), Steel Dynamics (STLD), T-Mobile (TMUS), and United Rentals (URI) are scheduled to report earnings.

Buzz Stocks July 19

Overseas Trading

Asian stocks closed higher today, as a record close for the tech-heavy COMP in the U.S. fueled investor sentiment. China's Shanghai Composite added 1.4% and Hong Kong's Hang Seng rose 0.6%, as financial and energy shares surged. Elsewhere in the region, South Korea's Kospi tacked on 0.2%, while Japan's Nikkei edged up 0.1% as the Bank of Japan (BoJ) kicked of its two-day policy-setting meeting.

Stocks are on the rise in Europe, thanks to a round of well-received earnings reports -- including ones from Swedish appliance name Electrolux and Dutch chipmaker ASML Holding. The European Central Bank (ECB) is also in focus, with its two-day policy meeting beginning today. At last check, London's FTSE 100 is up 0.3%, the French CAC 40 is flirting with a 0.2% lead, and the German DAX has edged 0.02% higher.


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