Dow Futures Vault Higher With Rebounding Oil

CVX and XOM are up in response to rising oil prices

by Patrick Martin

Published on May 9, 2018 at 9:21 AM

Dow Jones Industrial Average (DJI) futures are trading above fair value, climbing alongside blue-chip energy stocks Chevron (CVX) and Exxon Mobil (XOM) as oil prices turn higher in the wake of the the U.S. decision to withdraw from the Iran nuclear agreement. At last check, June-dated crude futures are up 2.7% at $70.91 per barrel. Investors are also digesting this morning's inflation update, with the producer price index (PPI) edging up 0.1% in April, below the 0.3% estimate. 

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

  • 3 charts saying sell now.
  • Square stock is back on track after its latest software roll out.
  • Call buyers blasted booming Valeant stock.
  • Plus, Walmart buys Flipkart; Electronic Arts scores an earnings beat; and the drug stock set to soar.

US Stock Futures Chart May 9

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 804,872 call contracts traded on Tuesday, compared to 488,489 put contracts. The single-session equity put/call ratio rose to 0.61, while the 21-day moving average remained at 0.64.
  2. Walmart Inc (NYSE:WMT) is down 4.5% in electronic trading, following news the retail giant agreed to a $16 billion deal to buy a 77% controlling stake in Indian e-commerce giant Flipkart. Walmart stock has fallen off since its Jan. 29 record high of $109.98, with recent rally attempts contained by its 200-day moving average.
  3. Electronic Arts Inc. (NASDAQ:EA) stock is up 2.9% ahead of the bell, after the video game company reported fiscal fourth-quarter earnings and revenue above analyst expectations. In response, EA received a pair of price-target hikes from Wedbush (to $158 from $138) and MKM Partners (to $144 from $137). Electronic Arts stock has added 18% in 2018, and scored a record high of $131.13 on March 16. 
  4. T2 Biosystems Inc (NASDAQ:TTOO) was upgraded to "buy" from "hold" at Janney, after the drugmaker reported better-than-expected first-quarter revenue. Leerink also chimed in with a price-target hike to $5 from $4. TTOO is up 8.2% in electronic trading, after closing last night at $6.10.
  5. Weekly crude inventories are due today, while Atlanta Fed President Raphael Bostic is expected to speak. 21st Century Fox (FOXA), e.l.f. Beauty (ELF), Groupon (GRPN), Horizon Pharma (HZNP), Mylan NV (MYL), Office Depot (ODP), Roku (ROKU), SINA (SINA), Toyota Motor (TM), and Wix.com (WIX). will report earnings.

Stock Futures Chart May 9

Global Stocks React to Trump's Iran Announcement

Asian stocks closed mostly lower today, after President Donald Trump announced that the U.S. will back out of the Iran nuclear deal. Despite the uproar, crude prices rebounded, reaching another multi-year peak. Japan's Nikkei ended 0.4% lower, China's Shanghai Composite closed down 0.1%, South Korea's Kospi lost 0.2%, and Hong Kong's Hang Seng managed a 0.4% lift.

European markets are trading mixed at midday. U.K. telecommunications concern Vodafone is higher after announcing it will buy assets from sector peer Liberty Global for $13 billion. Oil stocks are higher with crude futures, sending London's FTSE 100 up 0.4%, at last check. However, France's CAC 40 and Germany's DAX are down 0.2% and 0.1%, respectively, at last glance.


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