Dow Futures Boosted By Strong Earnings

U.S. import prices rose by the most in a year in September

Managing Editor
Oct 17, 2017 at 9:32 AM
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Dow Jones Industrial Average (DJIA) futures are higher this morning, as markets digest a busy day of earnings reports. Dow stocks Goldman Sachs (GS), Johnson & Johnson (JNJ), and UnitedHealth (UNH) are all headed higher after earnings beats, and should help the Dow extend its quest for record highs. Netflix (NFLX) is also in the earnings spotlight, after reporting higher-than-expected subscriber growth.

Meanwhile, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are flat ahead of the bell. Outside of earnings, traders are digesting a 0.7% rise in U.S. import prices in September -- the biggest gain in over a year -- and news that Rep. Tom Marino withdrew his name from consideration for drug czar.

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

  • Pinpointing the greatest risk of a VIX pop, according to Schaeffer's Senior V.P. of Research Todd Salamone.
  • Options bulls are flocking to these 2 chip stocks.
  • Nordstom's big plans to go private were put on hold.
  • Plus, a big biotech merger; Apple eyed healthcare; and the latest with P&G and Peltz.


5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 838,935 call contracts traded on Monday, compared to 583,332 put contracts. The single-session equity put/call ratio rose to 0.70, and the 21-day moving average went up to 0.65.
  2. Impax Laboratories Inc (NASDAQ:IPXL) will merge with private biotech company Amneal Pharmaceuticals LLC in an all-stock deal, to form a new publicly traded company named Amneal Pharmaceuticals Inc. IPXL trading was halted this morning, but the stock is now pointed 10.8% lower in pre-market trading.
  3. Apple Inc. (NASDAQ:AAPL) reportedly considered a foray into healthcare clinics. The Dow giant was allegedly in talks to buy Crossover Health, but no deal materialized. AAPL stock is down 0.1% in electronic trading.
  4. Procter & Gamble Co (NYSE:PG) estimated that Nelson Peltz's attempt at a board seat fell short by 6.15 million votes. In a statement, Peltz's Trian Fund Management said the "election is too close to call." PG stock is up 0.2% in electronic trading, and the blue chip will report earnings Friday morning.
  5. Today will bring the release of monthly industrial production data, the NAHB housing market index, and the Treasury International Capital (TIC) data. IBM (IBM), Comerica (CMA), Cree (CREE), Harley-Davidson (HOG), Navient (NAVI), Progressive (PGR) and Select Comfort (SCSS) will step up to the earnings plate.

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Overseas Trading

Tokyo-listed stocks extended their winning streak to an 11th consecutive session today, bolstered by strength in the manufacturing sector. By the close, Japan's Nikkei was up 0.4%. Elsewhere in the region, trading in major equity indexes was subdued, with investors taking a cautious approach ahead of tomorrow's commencement of the 19th Chinese Communist Party Congress in Beijing. South Korea's Kospi edged up 0.2%, Hong Kong's Hang Seng tacked on 0.02%, and China's Shanghai Composite backpedaled 0.2%.

Likewise, European equities are sticking close to breakeven at midday. Oil stocks remain a pocket of strength amid continued gains in Brent crude futures -- but the travel and leisure sector is getting hammered, with Merlin Entertainments off more than 17% after warning that "international tourism deteriorated materially" in the wake of recent terror attacks. At last look, London's FTSE 100 is up 0.3%, the German DAX has advanced 0.07%, and the French CAC 40 is 0.03% lower.


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