Dow Futures Crumble After Trump Tweet Threatens Syrian Airstrike

Crude oil prices are surging as political tensions in the Middle East rise

by Karee Venema

Published on Apr 11, 2018 at 9:16 AM
Updated on Apr 11, 2018 at 9:23 AM

Futures on the Dow Jones Industrial Average (DJI) are trading 200 points below fair value, after a tweet from President Donald Trump implied support for a U.S. missile strike in Syria, writing, "they will be coming, nice and new and 'smart!'" This follows an alleged chemical attack on Douma over the weekend, and comments from a Russian ambassador that the country will shoot down American missiles aimed at Syria. May-dated crude futures have jumped 0.9% to trade at $66.11 per barrel on the rising geopolitical tensions.

Also in focus are rumors that Trump is considering firing Deputy Attorney General Rod Rosenstein, and Facebook (FB) CEO Mark Zuckerberg will finish his two-day congressional testimony -- with the FAANG stock having its best day in years following Tuesday's appearance. Plus, the minutes from the March Fed meeting are due out this afternoon.

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

  • The best buy signals right now, according to Schaeffer's Senior Quantitative Analyst Rocky White.
  • Breaking down the 7-figure bet on big bank earnings.
  • This rebounding retail stock has room to run.
  • Plus, Cowen says to steer clear of GE; Fastenal stock set for post-earnings drop; and Mattel gets upgraded.

stock index futures april 11

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 838,295 call contracts traded on Tuesday, compared to 475,223 put contracts. The single-session equity put/call ratio fell to 0.57, and the 21-day moving average stayed at 0.66.
  2. Cowen said to avoid General Electric Company (NYSE:GE) ahead of the company's fiscal 2016 and 2017 earnings restatements, due by this Friday, April 13. The brokerage firm also projected a first-quarter earnings miss, and dropped its GE stock price target to $12 from $15. After closing last night at $13.05, the shares are down 1.1% in electronic trading.
  3. Industrial supplies firm Fastenal Company (NASDAQ:FAST) reported first-quarter earnings that were in line with estimates on higher-than-forecast revenue. Nevertheless, heavily shorted FAST stock is set to open the session down 3.7%.
  4. Jefferies upgraded Mattel, Inc. (NASDAQ:MAT) to "hold" from "underperform," saying risks to the toymaker are already priced in. MAT stock is pointed modestly higher ahead of the bell.
  5. The core consumer price index (CPI) rose 0.2% in March, though the CPI fell 0.1% -- its first drop since May 2017. The weekly crude inventories update and the Treasury budget will also be released. Bed Bath & Beyond (BBBY) will report earnings.

stock market news april 11

Global Stocks Trade Down on Geopolitical Risk

Stocks in Asia were a mixed bag today, as geopolitical tensions dented investor confidence. Japan's Nikkei fell 0.5% as the yen caught a safe-haven bid, while South Korea's Kospi edged 0.3% lower after a brief morning rally attempt fell apart by midday. Hong Kong's Hang Seng, however, gained 0.6% as Tuesday's big jump in oil prices bolstered energy stocks. Lastly, China's Shanghai Composite also gained 0.6% following a cooler-than-forecast 2.1% rise in its consumer price index.

Stocks in Europe are lower across the board as tension over Syria spooks markets. Among individual equities, Tesco boasts a 5.4% post-earnings gain in London, while Remy Cointreau has tanked 3.9% in Paris on the heels of a J.P. Morgan downgrade to "neutral." At last check, the U.K.'s FTSE 100 is off 0.09%, the French CAC 40 has slipped 0.7%, and Germany's DAX is 1% lower.

 


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