Stock Futures Higher With ADP Report, Fed in Focus

The Fed will conclude its policy meeting this afternoon

Managing Editor
Nov 1, 2017 at 9:14 AM
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Dow Jones Industrial Average (DJIA) futures are higher this morning, up triple digits after the index wrapped up a healthy October gain. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also higher, with both indexes appear ready to hit fresh record highs, as traders digest economic data and await earnings reports from Facebook (FB) and Tesla (TSLA), among others.

The Fed meeting will conclude today -- a day before President Trump is expected to announce his pick to lead the central bank -- though policymakers aren't expected to raise interest rates until December. Bolstering expectations for a rate hike was the ADP private-sector jobs report, which indicated 235,000 jobs were added in October, compared to the 200,000 estimate. The surge represented the biggest gain since March, and bodes well for Friday's nonfarm payrolls report.

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

  • The dark cloud hanging over the S&P's winning streak, according to Schaeffer's Senior Quantitative Analyst Rocky White.
  • Options traders are predicting a big move for GoPro stock after earnings tonight.
  • 2 chip stocks continuing to break out.
  • Plus, Wal-Mart's holiday moves; AMD's board change; and the retail stock slipping after a downgrade.

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5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 986,299 call contracts traded on Tuesday, compared to 567,090 put contracts. The single-session equity put/call ratio fell to 0.57, and the 21-day moving average fell to 0.65.
  2. Wal-Mart Stores Inc (NYSE:WMT) announced today that it was tripling its inventory for the upcoming holiday season, as well as offering free two-day shipping on orders over $35. The news has WMT stock up 0.5% ahead of the bell, and the blue-chip retailer is one of the best stocks to own in November.
  3. Advanced Micro Devices, Inc. (NASDAQ:AMD) is up 2% in electronic trading, after the chip company appointed former Micron Technology (MU) CEO Mark Durcan to its board of directors. AMD stock had a rough October, falling below its usually supportive 200-day moving average after a subpar earnings report. 
  4. Abercrombie & Fitch Co. (NYSE:ANF) stock was downgraded to "underweight" from "neutral" at J.P. Morgan Securities, sending the retailer down 8% in electronic trading. Analysts also cut their price target to $10 from $12 -- a discount to the security's $13.43 close yesterday. Nevertheless, ANF stock has tacked on 12% year-to-date.
  5. Data on motor vehicle sales, construction spending, Markit's purchasing managers manufacturing index (PMI), the Institute for Supply Management's (ISM) manufacturing index, and the weekly crude inventories update will hit the Street today.  Allergan (AGN), Allstate (ALL), Cheesecake Factory (CAKE), Clorox (CLX), Clovis Oncology (CLVS), Ctrip.com (CTRP), Estee Lauder (EL), FireEye (FEYE), Garmin (GRMN), GoPro (GPRO), Groupon (GRPN), Honda Motor (HMC), Kraft Heinz (KHC), Marathon Oil (MRO), Office Depot (ODP), Qualcomm (QCOM), Shake Shack (SHAK), SodaStream (SODA), Transocean (RIG), and Yelp (YELP) all step up to the earnings plate

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Overseas Trading

It was a positive finish in Asia today, with markets getting a boost from rising oil prices and an inline reading for China's Caixin manufacturing PMI. While the Shanghai Composite lagged with its 0.08% gain, Hong Kong's Hang Seng jumped 1.2%, and South Korea's Kospi added 1.3% as tech stocks Samsung Electronics and SK Hynix surged. Japan's Nikkei outpaced its regional peers, rallying 1.9% -- and hitting a new 21-year high in the process -- as a cooling yen helped boost automakers.

European markets are higher at midday, as mining and tech shares outperform in the wake of Beijing's well-received PMI data. At last check, the French CAC 40 is up 0.4%, while the German DAX is 1.7% higher -- on track for a fresh record closing high. London's FTSE 100, meanwhile, has added 0.1% as strong U.K. PMI data and a modest uptick in home prices overshadows a negative earnings reaction for retailer Next.

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