Stock Futures Sluggish As Tax Plan, Fed Chair Decision Take Center Stage

President Trump will make his Fed Chair decision at 3 p.m. ET

Patrick Martin
Nov 2, 2017 at 9:18 AM
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Dow Jones Industrial Average (DJIA) futures are cautiously higher this morning, with central banks and the latest round of earnings in focus. In addition, the unveiling of the House Republican tax bill will be sure to pique traders' interest.

President Trump is expected to formally announce a decision on Fed Chair, where it is widely suggested Fed Governor Jerome Powell will be the choice. Meanwhile, speculators are digesting the Bank of England's (BoE) first rate hike in 10 years, a day after the Fed signaled a December rate hike is on tap. Earnings season continues to roll along, with Alibaba (BABA), Tesla (TSLA), and Facebook (FB) in the spotlight today, ahead of Apple's (AAPL) earnings tonight.

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

  • Your Apple earnings preview.
  • Options bears are lining up for this struggling blue-chip stock.
  • Analysts expect record highs for this airline stock.
  • Plus, a Tesla marriage in trouble; Under Armour's executive shakeup; and Blue Apron's sales surprise.

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5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 1,088,633 call contracts traded on Wednesday, compared to 771,145 put contracts. The single-session equity put/call ratio jumped to 0.71, and the 21-day moving average rose to 0.65.
  2. NVIDIA Corporation (NASDAQ:NVDA) has been a beast on the charts lately, with the chip stock shooting to a record high yesterday. However, NVDA stock is down 0.4% this morning ahead of the bell, after Tesla owner Elon Musk hinted that his self-driving cars may go in a new hardware direction. Despite the speculation today, NVDA stock has tripled in the past year.
  3. Under Armour Inc (NYSE:UAA) stock is down 0.4% before the bell, amid reports the retailer was losing two key executives: marketing chief Andrew Donkin and senior vice president Pamela Catlett. UAA stock is down 59% year-to-date after touching a five-year low yesterday, and is still reeling from Tuesday's dismal earnings report.
  4. Despite getting crushed in its first earnings report, Blue Apron Holdings Inc (NYSE:APRN) stock is up 3.6% in electronic trading, after posting mixed third-quarter earnings results. While the company reported a steeper-than-expected per-share loss, the meal supplier's revenue beat forecasts. APRN stock has shed 53% since going public, and touched a record low of $4.61 yesterday.
  5. Traders will also hear from New York Fed President William Dudley and Atlanta Fed President Raphael Bostic today. DowDuPont (DWDP), Activision Blizzard (ATVI), Chesapeake Energy (CHK), Cigna (CI), Cirrus Logic (CRUS), Delphi Automotive (DLPH), Gogo (GOGO), Herbalife (HLF), Live Nation (LYV), Pandora Media (P), Ralph Lauren (RL), Sprouts Farmers Market (SFM), Starbucks (SBUX), SunPower (SPWR), Teva Pharmaceutical (TEVA), and Yum! Brands (YUM) will up to the earnings plate

stock news november 2

Overseas Trading

It was a mostly lower finish in Asia today, though Tokyo stocks outperformed on a positive earnings reaction for Honda, while Sony extended its earnings-related surge. At the close, Japan's Nikkei was up 0.5% to notch its highest close since June 1996. China's Shanghai Composite and South Korea's Kospi each gave back 0.4%, and Hong Kong's Hang Seng shed 0.3%.

European markets are mixed at midday, with London stocks outperforming following the BoE's first rate hike since 2007. Specifically, the FTSE 100 is up 0.6%, after the central bank lifted its key interest rate to 0.5% from 0.25% -- a move that was widely expected. Traders are now panning comments from BoE Governor Mark Carney, and keeping a close eye on sterling, which has plummeted against the U.S. dollar and the euro in the wake of the announcement. Elsewhere in the region, the German DAX and the French CAC 40 are both flirting with 0.1% losses.

 

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