Several Fed speakers are on tap today
Dow Jones Industrial Average (DJI) futures are trading well above fair value, as stocks look to build off the momentum from Friday's tech rally. Attracting attention today are surging oil prices, with June-dated crude futures up 1.3% at $70.62 per barrel -- trading near levels not seen since 2014 -- ahead of this Saturday's deadline for U.S. President Donald Trump to decide whether to re-impose sanctions against Iran. Elsewhere, several Fed speakers will take the mic today, with Wall Street looking for clues on a possible June rate hike.
Continue reading for more on today's market, including:
- Behind this streaming stock's best day ever.
- Option bears are paying up for Hertz puts ahead of earnings.
- Why Micron stock could be set to rally.
- Plus, Starbucks links up with Nestle; analysts chime in on Alibaba stock; and Buffett doles out more Apple praise.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.1 million call contracts traded on Friday, compared to 625,971 put contracts. The single-session equity put/call ratio fell to 0.55, while the 21-day moving average remained at 0.65.
- Starbucks Corporation (NASDAQ:SBUX) stock is up 3.5% in electronic trading, after the coffee giant inked a $7.15 billion deal giving Swiss-based Nestle the rights to sell its products around the world. On Friday, Starbucks stock closed at $57.68, just above its year-to-date breakeven mark.
- Alibaba Group Holding Ltd (NYSE:BABA) stock is up 0.9% ahead of the bell, after receiving four price-target hikes this morning following Friday's positive earnings reaction. Included in the bunch was one to $262 from $260 at Stifel, which represents uncharted territory for the Chinese e-commerce giant, which scored a record high of $206.20 on Jan. 31. Overall, BABA stock has added almost 10% in 2018.
- Shares of Apple Inc. (NASDAQ:AAPL) are up 0.8% in electronic trading, after Warren Buffett doubled down on his comments last Friday about his increased stake in the FAANG stock. The Oracle of Omaha noted over the weekend at Berkshire Hathaway's (BRK.A) annual shareholder meeting that he'd "like to own 100%" of Apple. AAPL stock, which is coming off its best weekly win since October 2011, is now on track to open at a fresh record high.
- Speeches from Richmond Fed President Tom Barkin, Dallas Fed President Robert Kaplan, and Chicago Fed President Charles Evans will kick off the week. The Fed's consumer credit report is also expected. For earnings, AMC Entertainment (AMC), Carrizo Oil & Gas (CRZO), Envision Healthcare (EVHC), Luminex (LMNX), Plug Power (PLUG), Veeco Instruments (VECO), and Zillow (ZG) will report.
Global Stocks React to Climbing Crude
Stocks in Asia finished today mixed, with investors eyeing Friday's well-received U.S. jobs report and steadily rising oil prices. China's Shanghai Composite turned in the day's biggest gain, up 1.5%, while a 3% rally for energy giant CNOOC helped push Hong Kong's Hang Seng 0.2% higher. Japan's Nikkei was little changed after a four-day holiday break, settling 0.03% lower. South Korean markets were closed for holiday.
European markets are mixed at midday, following Swiss food firm Nestle's announcement that they will pay $7.15 billion to market Starbucks coffee products worldwide. Germany's DAX is up 0.6% at last check, but France's CAC 40 is trading flat, pressured by a 10% plunge for Air-France-KLM following the CEO's resignation. U.K. markets are closed for holiday.