S&P, Nasdaq Win Streak at Risk With Yellen on Tap

Dow Jones Industrial Average (DJIA) futures are slightly higher ahead of the bell, signaling another up day for the record-setting blue-chip index. Elsewhere on Wall Street, though, stocks are signaling a breather, with the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) at risk of snapping their six-day winning streaks.

While economic data has driven the U.S. stock market higher in recent days, all eyes will be on Fed Chair Janet Yellen's mid-afternoon speech -- and her possible reaction to this morning's ADP payrolls report, which is often seen as a precursor to the Labor Department's jobs data. The private sector added 135,000 jobs last month, slightly less than the consensus estimate, due to Hurricanes Harvey and Irma. Last week, Yellen noted that the Fed may have overstated the strength of the labor market.

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

• Are low-dollar stocks the best buy? Schaeffer's Senior Quantitative Analyst Rocky White investigates.
• Wells Fargo options traders reacted to Elizabeth Warren's CEO slam.
• Short sellers have hammered this Amazon victim.
• Plus, PepsiCo signals a post-earnings drop; and 3 volatile drug stocks.

1. The Chicago Board Options Exchange (CBOE) saw 812,719 call contracts traded on Tuesday, compared to 538,383 put contracts. The single-session equity put/call ratio rose to 0.66, and the 21-day moving average edged up to 0.63.
2. PepsiCo, Inc. (NYSE:PEP) reported adjusted third-quarter earnings of $1.48 per share -- beating the consensus estimate by a nickel -- though the drink maker's $16.24 billion in revenue for the period fell short of analysts' forecast. In reaction, PEP shares are down 2% ahead of the bell -- continuing to retreat from this key moving average.
3. The Food and Drug Administration (FDA) approved Mylan N.V.'s (NASDAQ:MYL) generic version of Copaxone -- a multiple sclerosis treatment developed by Teva Pharmaceutical Industries Ltd (NYSE:TEVA). While MYL stock is up 17% ahead of the bell, TEVA shares are down 15% -- set to erase their recent FDA-inspired gains.
4. A day after shares of Celsion Corporation (NASDAQ:CLSN) quadrupled in value on upbeat data for its ovarian cancer treatment, they're down 20% in electronic trading today. However, CLSN stock's 14-day Relative Strength Index (RSI) settled at 95 last night, well into overbought territory.
5. The Institute for Supply Management's (ISM) non-manufacturing index and the weekly crude inventories update are due today. Yellen will speak at 2:15 p.m. ET, while St. Louis Fed President James Bullard will take the stage at 3 p.m. Acuity Brands (AYI), Monsanto (MON), and Ruby Tuesday (RT) will report earnings.

Overseas Trading

With markets in China and South Korea still closed for national holidays, the focus remained on stocks in Hong Kong and Japan. The former index didn’t disappoint, either, rallying 0.7% to notch its highest close since April 2015. Pushing the benchmark higher were strong gains from large-cap bank and insurance stocks, while shares of automakers also outperformed. Meanwhile, the Nikkei managed a 0.1% win in Japan, despite a stronger yen. One of the most notable risers in the region was Japan Display, which surged thanks to reports the company will begin producing OLED panels for smartphones in 2019.

Elsewhere, European bourses are mostly trading lower today. Equities are likely feeling pressure from the intensifying situation in Spain, where Catalonia officials again announced plans to declare their independence in the days ahead. Traders are also reacting to disappointing eurozone retail sales. After spending time on both sides of breakeven, the FTSE 100 was last seen 0.1% lower, while France's CAC 40 has shed 0.4%. Germany's DAX, on the other hand, has managed a 0.1% gain.