The social media name reported encouraging profit and revenue in the first quarter
The U.S. stock market is on track for a positive open, with Facebook's (FB) first-quarter earnings beat boosting investor sentiment. Most recently, FB stock is up 7.5% in pre-market action, and futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are trading comfortably above fair value. Futures on the Dow Jones Industrial Average (DJI) are also holding higher following this morning's economic data, which included a stronger-than-expected 2.6% jump in durable goods last month -- thanks to a rise in orders for Boeing (BA) planes -- and a narrowed trade gap on shrinking imports.
Continue reading for more on today's market, including:
- This USO options signal has preceded oil tops.
- One social media stock just snapped its longest winning streak since January.
- Call traders are blasting this Dow stock ahead of earnings.
- Plus, CMG stock gaps higher after earnings; graphic chip sales lift AMD results; and AAL gets pressured post-earnings.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.06 million call contracts traded on Wednesday, compared to 735,513 put contracts. The single-session equity put/call ratio rose to 0.70, while the 21-day moving average edged up to 0.66.
- Chipotle Mexican Grill, Inc. (NYSE:CMG) reported better-than-expected first-quarter earnings of $2.13 per share on in-line revenue of $1.1 billion, while same-store sales for the burrito chain jumped 2.2%. The results are being considered a glowing review of CEO Brian Niccol's first few months on the job, and a number of analysts boosted their CMG price targets overnight. The shares are up 14% in electronic trading, set to open at their highest level since mid-July.
- Advanced Micro Devices, Inc. (NASDAQ:AMD) said first-quarter adjusted profit arrived at 11 cents per share, while revenue surged 40% to $1.65 billion on strong graphic chip sales. Plus, no fewer than three brokerage firms have raised their price targets on AMD stock. In reaction, the shares have jumped 9.3% ahead of the bell, and could tackle a recent level of technical resistance in today's trading.
- American Airlines Group Inc (NASDAQ:AAL) reported first-quarter profit of 75 cents per share, excluding items, which was more than analysts were expecting. However, disappointing revenue and a warning on fuel costs has AAL stock in the red in pre-market trading. The shares closed last night at $45.25, and have a history of negative earnings reactions.
- Weekly jobless claims came in lower than expected this morning, and the Fed's balance sheet is also due out today. Intel (INTC), Microsoft (MSFT), Amazon (AMZN), Alexion Pharma (ALXN), Expedia (EXPE), First Solar (FSLR), Mattel (MAT), Starbucks (SBUX), U.S. Steel (X), and Western Digital (WDC) will all report earnings.
Stocks in Europe Digest ECB Announcement
Stocks in Asia finished mixed. South Korean tech leader Samsung Electronics reported record first-quarter earnings, with the stock's 3.5% rally contributing to the Kospi's 1.1% lift. Meanwhile, China's Shanghai Composite shed 1.4%, despite the State Council's newly announced tax cuts. Hong Kong's Heng Seng fell 1.1%, tracking weakness on the mainland, while Japan's Nikkei added 0.5% on a cooling yen.
European stocks are hovering around breakeven at midday, as traders weigh a high-profile earnings miss from Deutsche Bank against an accommodative stance from the European Central Bank (ECB). Policymakers stood pat on rates, as expected, and predicted rates would remain around current lows for an "extended period of time." At last check, Germany's DAX and London's FTSE 100 were both 0.1% higher, while France's CAC 40 was up 0.5%.