Dow Jones Industrial Average Futures Retreat After Record Highs

After the Dow Jones Industrial Average (DJIA) hit its ninth straight record high yesterday, futures on the blue-chip index are trading modestly below fair value. A down day for U.S. stocks could also have the Dow snapping its 10-session winning streak. Amid a relatively bare economic calendar -- the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) is due at 10 a.m. ET, and follows last Friday's impressive jobs report -- Wall Street will digest a round of corporate earnings reports.

Oil prices will also be in focus, as an Organization of the Petroleum Exporting Countries (OPEC) committee concludes its two-day meeting. At last check, September-dated crude futures were down 0.1% at $49.33 per barrel.

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

• Why small caps are the stocks to watch, according to Schaeffer's Senior V.P. of Research Todd Salamone.
• The steel stock with cheap options.
• Goldman: Sell this cell phone stock.
• Plus, the retail stock set to soar; Valeant shares jump post-earnings; and Twilio's big earnings beat.

1. The Chicago Board Options Exchange (CBOE) saw 710,500 call contracts traded on Monday, compared to 545,023 put contracts. The single-session equity put/call ratio jumped to 0.77, and the 21-day moving average rose to 0.64.


2. Michael Kors Holdings Ltd (NYSE:KORS) reported fiscal first-quarter earnings and revenue that came in above analysts' estimates, and provided better-than-expected current-quarter and full-year guidance -- now including the retailer's recent Jimmy Choo purchase. KORS stock is up 12.6% in electronic trading, poised to topple its 200-day moving average for the first time since early December.


3. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) reported adjusted second-quarter earnings that beat the consensus forecast on in-line revenue. And though the drugmaker lowered its full-year revenue forecast, it said it will repay $5 billion in debt by next February -- earlier than expected. VRX shares are poised for another volatile earnings reaction, up almost 10% before the open.


4. Shares of Twilio Inc (NYSE:TWLO) are trading 13.1% higher in pre-market trading, after the cloud name reported an unexpected second-quarter profit and a 49% rise in year-over-year revenue. Twilio also upped its full-year sales guidance. A price-target hike at Canaccord Genuity is only adding fuel to the stock's fire, with TWLO set to open at its highest point since mid-February. 


5. Walt Disney (DIS), Fossil (FOSL), Hertz Global (HTZ), Ocular Therapeutix (OCUL), and Ralph Lauren (RL) will step up to the earnings plate. 

Overseas Trading

Major stock indexes in Asia closed mixed, as trading volumes remained thin. For the most part traders focused on trade data out of China, with import and exports both rising less than expected in July. Still, the Shanghai Composite managed a 0.1% win, and the Hang Seng picked up 0.6% in Hong Kong. Japan’s Nikkei closed lower, however, despite a substantial rise in profits reported from SoftBank. With the yen strengthening against the U.S. dollar, the index settled 0.3% lower. Finally, South Korea’s Kospi dropped 0.2%.

Trade data is also in focus in Europe, where stocks are struggling for upside at the halfway point. Specifically, data revealed the first decline for German exports this year in June. Plus, France’s trade deficit widened more than expected for the same month. Among the equities in focus is jewelry concern Pandora A/S, as the shares sell off following a disappointing earnings report. At last check, Germany’s DAX is down 0.4%, France’s CAC 40 is off 0.2%, while London’s FTSE 100 is 0.1% lower.