The House is poised to vote on Republicans' tax reform plan
Dow Jones Industrial Average (DJIA) futures appear ready to bounce back, after the index closed yesterday's session down triple digits. A flurry of upbeat earnings reports are helping the index, with Wal-Mart (WMT) and Cisco Systems (CSCO) stocks pointed higher after earnings. All eyes will be on Washington, D.C., later, as the House of Representatives is poised to vote on their tax-overhaul bill. Elsewhere, weekly jobless claims rose more than expected to a six-week high, and U.S. import prices rose by 0.2% in October, lower than the 0.4% estimate.
Continue reading for more on today's market, including:
- Buy calls on these 2 retail stocks, if history is any indicator.
- How options traders are gearing up for Foot Locker earnings.
- Why Abercrombie & Fitch stock could make a big move tomorrow.
- Plus, P&G proxy fight takes new turn; Emerson ups efforts to buy Rockwell; and Pandora gets an upgrade.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 791,806 call contracts traded on Wednesday, compared to 584,662 put contracts. The single-session equity put/call ratio rose to 0.74, the highest point since Sept. 22. The 21-day moving average remained at 0.65.
- Procter & Gamble Co (NYSE:PG) stock is up 2% in electronic trading, after Nelson Peltz's Trian Group won the preliminary recount vote for a board seat on P&G. The activist fund manager won by 43,000 votes, but P&G can still challenge the ruling. The Dow stock has added only 5% year-to-date, and has shed 5% since touching an all-time high of $94.67 on Sept. 20.
- Rockwell Automation (NYSE:ROK), one of the best stocks to buy in November, is up 7% before the bell, after Emerson Electric (EMR) raised its unsolicited buyout bid for the industrial automation company. The bid price is now valued at $29 billion, or $225 per share. ROK stock has added 40% year-to-date, and touched a record high of $210.72 on Oct. 31. The shares closed yesterday at $188.73.
- Pandora Media Inc (NYSE:P), fresh off a subpar earnings report earlier this month, is up 6% in electronic trading, after BMO upgraded the stock to "outperform" from " market perform." Analysts at BMO cited increased subscriber numbers as reasons for the upgrade. It's been an ugly year for P stock, shedding 62% year-to-date and falling to a record low of $4.44 on Nov. 1.
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The Philadelphia Fed business outlook survey and industrial production data will be released today. Fed Governor Lael Brainard, Cleveland Fed President Loretta Mester, and Dallas Fed President Robert Kaplan will take the mic. Applied Materials (AMAT), Best Buy (BBY), Gap (GPS), Helmerich & Payne (HP), J M Smucker (SJM), Ross Stores (ROST), Splunk (SPLK), and Viacom (VIAB) report earnings.
Asian markets finished mostly higher, despite Wednesday's sharp selloff on Wall Street. Japan's Nikkei tacked on 1.5% -- snapping its six-day losing streak -- as SoftBank rallied on news of a possible $25 billion investment in Saudi Arabia. Elsewhere, a positive earnings reaction for Tencent helped lift Hong Kong's Hang Seng 0.6%, while South Korea's Kospi added 0.7%. China's Shanghai Composite lagged its regional peers, though, giving back 0.08%.
It's a positive session in Europe at midday, as traders respond to a fresh batch of corporate earnings reports. While a post-earnings surge for French conglomerate Bouygues is helping to boost the construction sector, bank stocks are getting a boost from the earnings reaction for U.K. investment name 3i Group. Automakers are rallying, as well, after data showed new car registrations in the eurozone swung higher last month. At last check, the French CAC 40 was up 0.7%, the German DAX was flirting with a 0.6% lead, and London's FTSE 100 was sitting 0.03% above breakeven after October retail sales came in above expectations.