Stock Futures Pointed Higher Amid Black Friday Frenzy

High hopes for Black Friday sales are driving retail stocks higher today

Managing Editor
Nov 24, 2017 at 9:22 AM
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Dow Jones Industrial Average (DJIA) futures are pointed higher this morning, after settling modestly lower in a low-volume session on Wednesday. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also trading above fair value, with all three benchmarks on track to post weekly wins.

Retail stocks are in focus on this shortened trading day, as the holiday shopping frenzy engulfs investors. Retail giants Amazon (AMZN) and Wal-Mart (WMT) appear to be among the early Black Friday winners, with AMZN stock on pace to open at a new record high. Elsewhere, January-dated oil futures are up 1.3%, amid the Keystone pipeline disruption.

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

  • Reviewing FOMC basics ahead of an expected December rate hike.
  • How call traders cashed in on Square's big bitcoin gains.
  • Why put buyers are blasting this booming oil ETF.
  • Plus, GE rallies; TEVA makes workforce cuts; and Broadcom's bid for Qualcomm takes another turn.

Stock futures chart nov 24


5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 827,802 call contracts traded on Wednesday, compared to 472,575 put contracts. The single-session equity put/call ratio fell to 0.57, while the 21-day moving average remained at 0.63.
  2. General Electric Company (NYSE:GE) is up 1.8% in electronic trading, after a Securities and Exchange Commission (SEC) filing reported board member James Tisch bought nearly $10 million in stock. It's been a brutal stretch for the Dow stock, which is two weeks removed from the company's worst one-day percentage drop since 2009. GE stock has dropped over 42% year-to-date, and fell to a five-year low of $17.46 on Nov. 14.
  3. Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is up 4% in electronic trading, after Israeli financial media reported that the struggling drug maker plans to cut 20-25% of its workforce in Israel. TEVA stock has shed 62.8% year-to-date, and fell to a 17-year low of $10.85 on Nov 2. 
  4. QUALCOMM, Inc. (NASDAQ:QCOM) is up 1.1% in electronic trading, after it was reported Broadcom (AVGO) was willing to raise its buyout offer. Broadcom's last bid consisted of $60 cash and $10 of AVGO stock per QCOM share; with QCOM shareholders reportedly holding out for $80 per share, Broadcom is said to be considering upping the amount of stock on offer. QCOM stock has added 30.9% in the past three months. 
  5. Wall Street will hear Markit's flash composite purchasing managers index (PMI) for November, while preliminary Black Friday sales will likely draw attention to retail stocks. The sector will stay in focus early next week, as online retailers roll out Cyber Monday deals.

Stocks in the news ahead of the open

Overseas Trading

Asian markets settled in positive territory today, with Chinese stocks bouncing back from Thursday's sharp sell-off. Specifically, the Shanghai Composite ended up 0.06%, after closing Thursday down more than 2% on liquidity concerns. Elsewhere in the region, Hong Kong's Hang Seng added 0.5%, and South Korea's Kospi tacked on 0.3%. And after being closed yesterday, Japan's Nikkei reopened to add 0.1%.

European benchmarks are higher at midday, as financial shares rally on reports of possible loosening regulatory oversight on bad loans, and consumer discretionary stocks get a lift on news China will reduce import tariffs on certain products. At last check, the German DAX was up 1% as signs suggest that Social Democrats -- the country's biggest opposition party -- may be open to working with Chancellor Angela Merkel. The French CAC 40 is 0.7% higher, and London's FTSE 100 has added 0.06%.

 

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