Dow Jones Industrial Average Futures Surge After Blue-Chip Earnings

The Senate could vote today to bring an Obamacare repeal bill to the floor

Jul 25, 2017 at 9:19 AM
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Dow Jones Industrial Average (DJIA) futures are trading sharply above fair value this morning, as traders digest a huge round of earnings. Dow stocks McDonald's, DuPont, and Caterpillar are all pointed higher in electronic trading thanks to strong quarterly results, with the latter flirting with pre-market upside of almost 5%. However, a negative earnings reaction for Google parent Alphabet has Nasdaq-100 Index (NDX) futures under pressure. Outside of earnings, traders will monitor the start of the Federal Open Market Committee's (FOMC) two-day policy-setting meeting, as well a vote to begin debate on a potential Obamacare repeal in the U.S. Senate. 
 
Continue reading for more on today's market, including:

  • The stocks that could take a leadership role in this market, according to Schaeffer's Senior Equity Analyst Joe Bell, CMT. 
  • Sizing up this silver ETF during Fed week. 
  • The healthcare stock that could be headed to record highs. 
  • Plus, a retailer surging on M&A buzz; Seagate slides; and the airline stock ready to run. 

stock futures today

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 813,899 call contracts traded on Monday, compared to 551,470 put contracts. The single-session equity put/call ratio rose to 0.68, and the 21-day moving average edged up to 0.62.
  2. Barnes & Noble, Inc. (NYSE:BKS) is up 14% ahead of the bell, following reports that Sandell Asset Management is urging the company to put itself up for sale. Sandell, which reportedly has taken a substantial stake in the company, said BKS could be bought for $12 per share. BKS stock outperformed in 2016, but is down 36% year-to-date based on last night's close at $7.10. 
  3. Seagate Technology PLC (NASDAQ:STX) is set to drop almost 20% out of the gate, following the company's fiscal fourth-quarter earnings miss. Seagate also announced Dave Mosley will take over as CEO on Oct. 1. Today's projected move would put STX stock well into negative year-to-date territory, and would mark its lowest open since last August. 
  4. JetBlue Airways Corporation (NASDAQ:JBLU) beat on the top and bottom lines with its second-quarter results, pushing the stock 1% higher in electronic trading. At $22.76, JBLU shares have gained almost 22% since their January lows. 
  5. Earnings from AK Steel (AKS), AT&T (T), Eli Lilly (LLY), Freeport-McMoRan (FCX), General Motors (GM), Texas Instruments (TXN), and United States Steel (X) are also expected. The S&P CoreLogic Case-Shiller home price index and the Conference Board's consumer confidence index will also hit the Street.

Buzz Stocks July 25

Overseas Trading

Stocks in Asia settled mostly lower today. A strong yen continued to weigh on Japan's benchmark index, despite a solid day for auto stocks -- sending the Nikkei to a loss of 0.1%. South Korea's Kospi took the biggest hit, ending the day down 0.5% after its recent string of record closing highs. Elsewhere, China's Shanghai Composite shed just 0.2%, and Hong Kong's Hang Seng battled back from intraday losses to close up 0.02%.

European markets are on the upswing at midday, as Germany's Ifo business climate index reached a "euphoric" 116.0 in July. Meanwhile, commodity stocks are trading higher, bolstered by gains for oil and copper prices. At last check, the French CAC 40 has gained 1.2%, London's FTSE 100 is up 0.9%, and the German DAX is 0.7% higher.


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