Dow Futures Surge as Big Bank Earnings Roll In

House GOP members are reportedly scrambling to pass a short-term spending bill

by Karee Venema

Published on Jan 17, 2018 at 9:12 AM

One day after the Dow Jones Industrial Average (DJI) took a brief trek north of 26,000 for the first time ever, futures on the blue-chip index are signaling a triple-digit jump out of the gate. Financial earnings continue to be in focus, with Goldman Sachs (GS) stock lower in pre-market trading after the big bank posted its first quarterly loss in six years, though profit beat on an adjusted basis. Bank of America (BAC) adjusted earnings also came in above the consensus estimate, sending its shares higher ahead of the bell.

And while traders will be keeping a cautious eye on Capitol Hill ahead of a possible government shutdown this weekend, reports are swirling that House Republicans are scrambling to pass a short-term spending bill that would provide funding through Friday, Feb. 16. Nevertheless, investor sentiment is risk-on today, with futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) trading above fair value, as well.

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

  • The technical pattern that's good news for small-cap bulls, according to Schaeffer's Senior Market Strategist Joe Bell, CMT.
  • This Chinese stock doubled on a blockchain technology deal.
  • The 25 worst stocks to own during the second year of a presidential cycle.
  • Plus, Apple downgraded, Tiffany reports strong holiday sales, and two discount retail stocks in the bullish limelight.

us stock futures jan 17

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.42 million call contracts traded on Tuesday, compared to 693,397 put contracts. The single-session equity put/call ratio fell to 0.49, while the 21-day moving average remained at 0.56.
  2. Longbow downgraded Apple Inc. (NASDAQ:AAPL) to "neutral" from "buy," citing a "good, not great iPhone cycle." This marks a rare bear note for AAPL stock -- which also saw its price-target raised at Barclays (to $174) and BofA-Merrill Lynch (to $220). After closing last night at $176.19, Apple shares are down 0.3% ahead of the bell.
  3. Tiffany & Co. (NYSE:TIF) is the latest retailer to post holiday sales numbers, saying same-store sales for the November-December stretch jumped 5% year-over-year. Total sales for the high-end jewelry maker rose 8%. TIF stock closed Tuesday at $107.58, after touching an annual high of $109.49.
  4. Oppenheimer initiated coverage on Dollar General Corp. (NYSE:DG) and Dollar Tree, Inc. (NASDAQ:DLTR) with "outperform" ratings, saying the discount retailers' long-term growth prospects and growing field of lower-income consumers look attractive. Both DLTR and DG stocks are higher in electronic trading, after hitting record highs yesterday.
  5. Industrial production data, the NAHB housing market index, the Fed's Beige Book, and Treasury International Capital data are all due. Chicago Fed President Charles Evans, Dallas Fed President Robert Kaplan, and Cleveland Fed President Loretta Mester will all speak. Alcoa (AA), Fastenal (FAST), and U.S. Bank (USB) will report earnings.

stock market news january 17

Hong Kong Stock Index Hits Record High

It was a mixed finished in Asia, as the pullback in U.S. stocks likely capped the upside for major benchmarks. The Chinese Shanghai Composite and Hong Kong's Hang Seng both finished with 0.3% wins, with the latter index touching another record high. Helping keep the indexes above breakeven was a strong performance from financial stocks. Japan's Nikkei pulled back from its 26-year highs, however, dropping 0.4%. The Kospi also fell, losing 0.3% by the close.

There’s more uniform price action in Europe -- though it's to the downside. A number of stocks are experiencing notable losses, including fashion firm Burberry, which is falling after a weak sales update and concerns about potential layoffs. Traders are also digesting December inflation data out of the eurozone that matched expectations. The FTSE 100 was down 0.2% at last check, the German DAX was down 0.1%, and the French CAC 40 had dipped 0.02%.


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