Stock Futures Cautiously Higher; Fed, Oil in Focus

William Dudley will retire before his term is over

by Patrick Martin

Published on Nov 6, 2017 at 9:20 AM

Dow Jones Industrial Average (DJIA) futures are cautiously higher, after the index's record-setting week. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also sticking close to breakeven. Traders are reacting to news that New York Fed President William Dudley will retire in 2018, before his term expires. Just last week, President Trump nominated Fed Governor Jerome Powell to head the central bank. Meanwhile, December-dated crude oil futures are up 0.5% at $55.92 per barrel -- a fresh two-year high -- after Saudi Crown Prince Mohammed bin Salman ordered several high-level arrests, including that of billionaire investor Alwaleed bin Talal. Markets will also be eagerly watching for the Senate's version of the tax plan later this week, as well as President Trump's tour of Asia.

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

  • This Oprah-endorsed stock could make a huge move tomorrow, if past is precedent.
  • This centuries-old numbers sequence can help identify a stock's support and resistance.
  • Put buyers are blitzing this healthcare stock ahead of earnings tonight.
  • Plus, QUALCOMM's new suitor; Sprint's merger breaks down; and CVS reports earnings.

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5 Things You Need to Know Today
  1. The Chicago Board Options Exchange (CBOE) saw 1.1 million call contracts traded on Friday, compared to 661,987 put contracts. The single-session equity put/call ratio fell to 0.60, and the 21-day moving average fell to 0.65.
  2. QUALCOMM, Inc. (NASDAQ:QCOM) stock is up 4.5% ahead of the bell, after the chip company confirmed it had received an unsolicited buyout proposal from Broadcom (AVGO). The deal is valued at $130 billion, or $70 per share -- a premium of 13% to QCOM stock's close of $61.81 on Friday, when the rumors first emerged. QUALCOMM last week filed suit against customer Apple for breaching a software license contract. 
  3. Sprint Corp (NYSE:S) stock is down 12% in electronic trading -- and headed for a new annual low -- after talks of a merger with T-Mobile (TMUS) broke down over the weekend. S stock has already shed 21% year-to-date, and KeyBanc this morning downgraded the shares to "underweight" from "sector weight."
  4. CVS Health Corp (NYSE:CVS) stock is up 1% ahead of the bell, after it was reported the drug store chain hopes to wrap up an Aetna (AET) buyout as soon as December. CVS Health also reported an earnings and revenue beat this morning.
  5. AMC Networks (AMC), Avis Budget Group (CAR), Cardinal Health (CAH), Etsy (ETSY), GoDaddy (GDDY), Michael Kors (KORS), Microchip Technology (MCHP), Mylan (MYL), Priceline (PCLN), Skyworks Solutions (SWKS), Sysco (SYY), Tenet Healthcare (THC), TripAdvisor (TRIP), TrueCar (TRUE), are set to report earnings

stock market news november 6

Overseas Trading

Asian markets closed on both sides of breakeven today, following Friday's record-setting finish on Wall Street and the start of President Donald Trump's tour of the region. China's Shanghai Composite outpaced its peers, tacking on 0.5% after the People's Bank of China (PBoC) Governor Zhou Xiaochuan outlined a plan to temper financial risks, which included support from the stock market. Japan's Nikkei also closed up, eking out a 0.04% gain. Elsewhere, Hong Kong's Hang Seng finished 0.02% lower after a weekend crackdown on Saudi Arabia political corruption, while South Korea's Kospi gave back 0.3% amid pressure from blue-chip tech stocks.

European stocks are mostly lower at midday, with telecom shares selling off on news that Sprint (S) and T-Mobile (TMUS) have ended takeover talks. Bank stocks are also lower following reports of a U.S. Justice Department probe of global financial firms Credit Suisse, VTB Group, and BNP Paribas over their possible role in selling roughly $2 billion in Mozambique debt, while traders are keeping an eye trained on the high-profile arrests in Saudi Arabia. At last check, the German DAX was off 0.3% and the French CAC 40 was down 0.2%. London's FTSE 100, meanwhile, is holding on to a fractional gain.


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