Dow Signals Another Record High as Tech Futures Lag

Nasdaq-100 futures are in the red

by Karee Venema

Published on Jan 12, 2018 at 9:18 AM

Futures on the Dow Jones Industrial Average (DJI) are trading well above fair value, after the blue-chip index closed at a fresh record high on Thursday. Traders are cheering signs of political stabilization in Germany -- where Chancellor Angela Merkel's CDU party and Martin Schulz's Social Democratic party have reportedly agreed to an outline to begin formal coalition negotiations -- as well as digesting big bank earnings, a key inflation update, and retail sales.

JPMorgan Chase (JPM) reported a profit beat, sending the Dow stock 0.5% higher in electronic trading. Meanwhile, the consumer price index (CPI) rose 0.1% in December -- in line with estimates -- while the core CPI jumped 0.3%, marking its biggest gain in 11 months. December retail sales increased 0.4%, slightly below the forecast for a 0.5% gain. And while the Dow and S&P 500 Index (SPX) appear poised for a positive start, futures on the Nasdaq-100 Index (NDX) are signaling a down day for the tech stocks.

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

  • Pro tips for buying options premium.
  • Buy the dip on this chip stock.
  • Ulta stock's bounce sparked a flood of bullish options trading.
  • Plus, a plunging FAANG stock, BlackRock eyes new highs, and the retail stock Deutsche Bank calls a "buy."

us stock index futures jan 12

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.25 million call contracts traded on Thursday, compared to 622,089 put contracts. The single-session equity put/call ratio plunged to 0.50, while the 21-day moving average fell to 0.56.
  2. Facebook Inc (NASDAQ:FB) CEO Mark Zuckerberg last night announced a series of changes to the Facebook News Feed, which are expected to weigh on near-term user engagement. Specifically, the filter will soon prioritize what friends share over non-advertising content. FB shareholders aren't happy, however, with the stock pointed 4.7% lower in pre-market trading, after closing Thursday at $187.77.
  3. BlackRock, Inc. (NYSE:BLK) shares are 2.1% higher in electronic trading, and are looking to touch a record high out of the gate, after the financial firm reported stronger-than-expected earnings and revenue. The company also hiked its quarterly dividend, and CEO Larry Fink told CNBC that he thinks most investors are still underinvested in equities. BLK stock closed at $537.92 on Thursday.
  4. Deutsche Bank upgraded Dick's Sporting Goods, Inc. (NYSE:DKS) to "buy" from "hold," and raised its price target to $39 from $33 -- a nearly 20% premium to last night's close at $32.57. The brokerage firm suggested industry trends hit a trough, while inventory levels appear more balanced and risk to margins was lower. DKS stock is up 3.5% ahead of the bell.
  5. Business inventories will also be released today, while Boston Fed President Eric Rosengren and Philadelphia Fed President Patrick Harker are both set to speak. PNC Financial Services (PNC) and Wells Fargo (WFC) also reported quarterly results, with more bank earnings rolling in next week.

stock market news january 12

Chinese Stocks Extended Historic Win Streak

Asian stock markets finished mostly higher, led again by the Chinese Shanghai Composite and the Hang Seng in Hong Kong. The indexes stretched their historic daily win streaks to 11 and 14, respectively, with the Hang Seng's 0.9% increase bringing it to a record high. The Shanghai Composite, meanwhile, closed up 0.1%. Financial stocks in the region supported the benchmarks, despite lackluster trade data out of China. South Korea's Kospi also grabbed a seat at the winners' table, adding 0.3%. The outcast was Japan's Nikkei, which fell by 0.2% as the yen strengthened yet again, though shares of heavyweight Fast Retailing soared.

Meanwhile, stock gains have been limited in Europe. Investors are reacting to the political news out of Germany, while automakers are getting a lift thanks to Fiat Chrysler's rise, and the retail sector is also outperforming. The FTSE 100 and CAC 40 were both up just 0.2% at last check, however, and the German DAX was slightly in the red.

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