Dow, S&P Set for Another Day of Gains; Nasdaq Looks to Snap Losing Streak

The Nasdaq is looking to snap its three-day losing streak

Aug 22, 2017 at 9:22 AM
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The Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) are set for a second day of gains, as U.S. stock futures signal a comfortably higher open. Meanwhile, the Nasdaq-100 Index (NDX) will look to snap a three-day losing streak. On the geopolitical front, traders are digesting last night's address from President Trump, where he indicated additional U.S. troops will be dispatched to Afghanistan, with an eye toward increasing pressure on Taliban supporters. 

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

  • Why it's the perfect time to add options to your portfolio, according to Schaeffer's Senior V.P. of Research Todd Salamone. 
  • Put trading has hit extreme levels on Valeant Pharmaceuticals
  • 2 retail stocks trading at fresh lows. 
  • Plus, DSW spikes pre-market, BHP Billiton's big announcement, and a management shake-up at Macy's.

 Stock Futures August 22

5 Things You Need to Know Today

 

  1. The Chicago Board Options Exchange (CBOE) saw 748,374 call contracts traded on Monday compared to 424,392 put contracts. The single-session equity put/call ratio fell to 0.57, and the 21-day moving average remained at 0.71.
  2. Better-than-expected second quarter earnings and revenue have DSW Inc. (NYSE:DSW) up 20.1% in electronic trading -- much to the surprise of bearish options traders. The shoe retailer also reported a 0.6% increase in same-store sales and announced a $500 million stock buyback.
  3. Shares of BHP Billiton Limited (NYSE:BHP) are up 2% in electronic trading, after the mining company announced that it would exit the U.S. shale oil and gas business. BHP also reported a surge in full-year profits. 
  4. Macy's Inc (NYSE: M) named senior eBay executive Hal Lawton as its new president, and announced the restructuring of its management ranks, cutting about 100 jobs in the process. As a result, the struggling retail stock is up 3.7% in pre-market trading.
  5. A quarterly report from Fabrinet (FN) rounds out the earnings calendar today. 

Pre-market stock movers for August 22, 2017

Overseas Trading

It was a mostly upbeat session for stocks in Asia, though trading volumes remained light. One blemish, however, was the Japanese Nikkei, which edged 0.05% lower for its fifth straight loss. The index was pressured by a strengthening yen, with the currency’s gains putting pressure on major exporters. Elsewhere, the Hang Seng enjoyed a 0.9% gain in Hong Kong, and the Shanghai Composite rose 0.1% in China. South Korea’s Kospi also closed higher, climbing 0.4%.

European benchmarks are also broadly higher. A number of mining and materials stocks are among the biggest gainers, while one of the most notable losers is Provident Financial, as the shares sell off following the company’s ugly profit warning. Germany’s DAX is up 0.7%, even after a major economic sentiment index missed expectations for August. London’s FTSE 100 is also up 0.7%, and France’s CAC 40 is sporting a gain of 0.5% at the halfway point.

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