Durable goods orders for August rose more than expected
After extending its losing streak yesterday, Dow Jones Industrial Average (DJIA) futures are signaling a higher start this morning, as Wall Street awaits President Trump's plans for tax reform. Meanwhile, traders are digesting the latest data on durable goods orders, which rose a bigger-than-expected 1.7% in August, and the Dow is pointed higher in spite of a negative earnings reaction for Nike. Fed speech week continues today, too, with Minneapolis Fed President Neel Kashkari, St. Louis Fed President James Bullard, and Boston Fed President Eric Rosengren expected to speak, following Fed Chair Janet Yellen's relatively hawkish comments yesterday.
Continue reading for more on today's market, including:
- The volatility signal we haven't seen since 2007, per Schaeffer's Senior Quantitative Analyst Rocky White.
- Buy this Dow stock right now.
- It might be time to strike on this FAANG stock.
- Plus, 3 stocks moving after earnings.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 771,111 call contracts traded on Tuesday, compared to 531,812 put contracts. The single-session equity put/call ratio rose to 0.69, and the 21-day moving average remained at 0.62.
- Micron Technology, Inc. (NASDAQ:MU) stock is up 5.4% in pre-market trading, after the company posted better-than-expected fiscal fourth-quarter earnings and revenue -- in line with options traders' predictions. As such, no fewer than 10 brokerage firms raised their respective price targets on MU, including Needham, to $76 from $50 -- territory MU shares haven't visited in 17 years.
- Another stock receiving upbeat analyst attention after reporting better-than-expected fiscal first-quarter earnings and upping its full-year guidance is Cintas Corporation (NASDAQ:CTAS) stock, last seen trading 4.6% higher before the bell. Stifel, Deutsche Bank, and Barclays each raised their respective price target on CTAS, with Barclays issuing the largest hike, to $160 from $150 -- in uncharted territory. CTAS shares could hit record highs out of the gate.
- Trading 3.3% lower in electronic trading this morning are shares of Nike Inc (NYSE:NKE), after the shoe retailer reported worse-than-expected fiscal first-quarter revenue, and warned of North American challenges "for at least several more quarters." The company also posted its slowest quarterly sales growth in almost seven years. As a result, no fewer than six brokerage firms cut their respective price targets on NKE, including Susquehanna, to $47 from $54.
- Pending home sales and the weekly crude inventories update will also hit the Street today. Stepping up to the earnings plate are Jabil (JBL), Pier 1 Imports (PIR), and Progress Software (PRGS).
Overseas Trading
Asian markets finished on both sides of breakeven today, as traders digested yesterday's rate-hike comments from U.S. Fed Chair Janet Yellen and looked ahead to today's release of details surrounding Trump's tax plan. In Japan, a rush of stocks going ex-dividend overshadowed a cooling yen -- sending the Nikkei down 0.3%. South Korea's Kospi also closed lower, giving back 0.07%. Chinese stocks outperformed once again, though, with the Shanghai Composite adding 0.06% and Hong Kong's Hang Seng jumping 0.5%.
European stocks are higher at midday, as financial shares rally ahead of today's expected tax plan in the U.S. Traders are also reacting to a well-received rail operations merger between regional heavyweights Alstom and Siemens, with shares of the former climbing to a six-year high in intraday action. At last check, the German DAX was up 0.5%, the French CAC 40 was 0.2% higher, and London's FTSE 100 was flirting with a 0.4% lead -- the latter of which appears set to snap its two-day losing streak, as mining shares surge with copper prices.