Dow Futures Up Triple Digits as Earnings Season Heats Up

Retail sales snapped a three-month losing streak in March

by Patrick Martin

Published on Apr 16, 2018 at 9:16 AM

Dow Jones Industrial Average (DJI) futures are pointed higher to kick off the week, up triple digits despite U.S.-led missile strikes on targeted facilities in Syria. President Donald Trump continues to keep investors on edge, however, this morning tweeting that "Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!" Meanwhile, earnings season hits full swing today, with Bank of America (BAC) stock higher after the company's results, and FAANG giant Netflix (NFLX) gearing up to report tonight. Elsewhere, retail sales rose 0.6% in March -- the first gain in four months and comfortably above the 0.4% estimate.

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

  • This options strategy could be risky in the current trading environment.
  • The healthcare stock squeezing shorts.
  • The drug stock that just flashed a reliable buy signal.
  • Plus, BofA's earnings beat; a rallying biotech stock; and FireEye parnters with Oracle.

Opening View Chart April 16

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.1 million call contracts traded on Friday, compared to 696,700 put contracts. The single-session equity put/call ratio stayed at 0.66, while the 21-day moving average stayed at 0.66.
  2. Bank of America Corp (NYSE:BAC) stock is up 0.9% in electronic trading, after the banking giant reported first-quarter earnings and revenue above analyst expectations. CEO Brian Moynihan attributed strong client and U.S. consumer activity as reasons for the upbeat report. BAC has added 33% in the last 12-months, closing at $29.80 on Friday.
  3. Alkermes Plc (NASDAQ:ALKS) stock is up nearly 17% ahead of the bell, after the Food and Drug Administration (FDA) accepted the biotech company's marketing application to review its treatment for major depressive disorder. Prior to today's rally, ALKS stock had shed 22% in 2018, gapping to a two-year low of $41.15 in early April, after the FDA initially rejected the drug's application. 
  4. Shares of FireEye Inc (NASDAQ:FEYE) are up over 3% in electronic trading, after the cybersecurity company announced a partnership with Oracle (ORCL). The two cloud-based tech companies will collaborate on cloud security. FEYE stock has tacked on nearly 32% in 2018, and touched a two-year high of $19.08 on Friday.
  5. Business inventories, Treasury International Capital data, and the Empire State manufacturing survey are due today, while Atlanta Fed President Raphael Bostic is scheduled to speak. Charles Schwab (SCHW) and J.B. Hunt (JBHT) will report earnings.

stock market news april 16

Dollar Weakness Weighs on Hong Kong Stocks

It was a mixed finish in Asia today, as traders weighed the impact of Friday's missile strikes in Syria. Persistent weakness in the Hong Kong dollar sparked another round of intervention from the city-state's monetary authority, which has stepped in five times in the last week to help staunch steady outflows. Meanwhile, Moscow-headquartered steel giant Rusal took heavy losses, shedding nearly 30% on expectations for further U.S. sanctions against Russian entities. By the close, Hong Kong's Hang Seng was down 1.6%, while China's Shanghai Composite fell 1.5%. On the other hand, markets in Tokyo and Seoul were resilient into the close, with Japan's Nikkei edging up 0.3% and South Korea's Kospi rising 0.1%.

European benchmarks are modestly lower at midday, as geopolitical tensions remain at the forefront. The MOEX Russia Index has declined 1.3% at last check, after U.S. Ambassador to the United Nations Nikki Haley said Sunday that new sanctions against the country would be announced by the Treasury Department. Meanwhile, Brent crude futures are off 1.1% at $71.76 per barrel following the targeted attacks on Syria over the weekend. At the session's halfway point, London's FTSE 100 is off 0.5%, while the French CAC 40 and German DAX have shed 0.1% each.

 
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