Bulls Welcome Wholesale Inflation Data as Cisco Props Up Dow Futures

A big earnings beat from CSCO is pushing the Dow higher

Patrick Martin
Feb 15, 2018 at 9:18 AM
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Stock futures are soaring once again, on track to extend the bullish momentum that fueled yesterday's big gains. While futures tanked early Wednesday in response to hotter-than-forecast inflation data, traders today are shrugging off a 0.4% jump in the producer price index (PPI), which arrived in line with consensus estimates. Dow Jones Industrial Average (DJI) futures are up over 185 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are higher as well. All three indexes are pacing for their fifth straight win, despite steadily escalating bond yields.  

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

  • Steer clear of these bank stocks next week.
  • 2 travel stocks to trade right now.
  • The licensing deal that sent one tech stock higher.
  • Plus, Buffett ups his stake in Teva; Cisco's big earnings beat; and TripAdvisor's revenue win. 

Stock Futures Chart Feb 15

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.03 million call contracts traded on Wednesday, compared to 611,912 put contracts. The single-session equity put/call ratio fell to 0.59, while the 21-day moving average jumped to 0.63. 
  2. Teva Pharmaceutical Industries Ltd (NYSE:TEVA) stock is up 9.6% in electronic trading, after Warren Buffett's Berkshire Hathaway disclosed a new 1.8% stake worth $358 million. TEVA stock has lost 46% year-over-year, guided lower by its 200-day moving average.
  3. Cisco Systems, Inc. (NASDAQ:CSCO) stock is up 7.2% before the bell, after the tech company reported fiscal second-quarter earnings and revenue above estimates, while also announcing a $25 billion addition to its stock buyback program and a dividend boost. The upbeat results have led no fewer than 12 analysts to issue price-target hikes, including to $55 from $52 at Deutsche Bank. Cisco stock is set to open north of $45, in territory not explored since late 2000. 
  4. Shares of TripAdvisor Inc (NASDAQ:TRIP) are up 14.1% in electronic trading, after the travel company reported fourth-quarter revenue that topped estimates and issued upbeat guidance for 2018. TripAdvisor stock is on track to open at levels not seen since May. Since falling to a five-year low of $29.50 on Nov. 15, the travel stock has tacked on 38%. 
  5. Today will be the busiest day of the week, with weekly jobless claims, the Fed's balance sheet, the Philadelphia Fed business survey, and data on industrial production due. In terms of earnings, Acorda Therapeutics (ACOR), Avon Products (AVP), CBS Corp (CBS), CyberArk Software (CYBR), Shake Shack (SHAK), Shopify (SHOP), Yamana Gold (AUY), and Yandex N.V. (YNDX) are due.

stock market news february 15

Asian Markets Higher While Airbus Lifts Europe

Asian stocks tracked their U.S. counterparts higher, though volume was light with markets in China and South Korea closed for the Lunar New Year holiday. Hong Kong's Hang Seng outpaced its regional peers in an abbreviated session, adding 2% as bank stocks surged. Elsewhere, Japan's Nikkei jumped 1.5%, as a big day for Sony overshadowed a larger-than-expected decline in December core machinery orders. 

Markets in Europe are trading in positive territory at midday, with solid earnings from aerospace giant Airbus helping to lift investor sentiment. Mining and commodity stocks are also on the upswing, as the U.S. dollar cools against a basket of global currencies. At last check, the French CAC 40 was up 1.3%, while London's FTSE 100 and the German DAX were each flirting with 0.4% gains.

 

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