Dow Futures Jump Despite Jobs, GDP Data

Investors are keeping a close eye on Italy's political developments

Patrick Martin
May 30, 2018 at 9:21 AM
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Dow Jones Industrial Average (DJI) futures are pointed higher, with the blue-chip index signaling a strong bounce after yesterday's sharp sell-off. Investors are monitoring the political situation in Italy, where right-wing party leader Matteo Salvini is calling for a snap election as soon as possible -- even amid reports the two major anti-establishment groups are attempting to form a new coalition government. Back home, ADP data showed the private sector added a lower-than-expected 178,000 jobs in May, while first-quarter gross domestic product (GDP) was downwardly revised to 2.2%, from the previous 2.3% estimate.

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

  • The contrarian volatility signal flashing again, courtesy of Schaeffer's Senior V.P. of Research Todd Salamone.
  • These stocks could avoid a June swoon
  • Put writers blitzed this struggling bank ETF.
  • Plus, AbbVie gets downgraded; Michael Kors stock sinks on weak guidance; and Dick's Sporting Goods toasts earnings beat.

Stock Futures Chart May 30

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 914,287 call contracts traded on Tuesday, compared to 595,341 put contracts. The single-session equity put/call ratio rose to 0.65, while the 21-day moving average remained at 0.61.
  2. AbbVie Inc (NYSE:ABBV) stock is up 3% in electronic trading, after the drugmaker announced the preliminary results of its tender offer. This is offsetting a downgrade to "underpeform" from "neutral," and price-target cut to $89 from $104 at Credit Suisse. The analyst in coverage expressed concern about upcoming competition in the market for AbbVie's top drug, Humira. The new price target represents a 10% discount to yesterday's closing price of $99.47.
  3. Michael Kors Holdings Ltd (NYSE:KORS) stock is down 6.9% ahead of the bell, after the retailer forecast a weaker-than-anticipated full-year fiscal 2019 profit. The company did, however, report fiscal fourth-quarter earnings and revenue that beat estimates. KORS stock 86% year-over-year, based on last night's close at $68.22. 
  4. Shares of Dick's Sporting Goods Inc (NYSE:DKS) are up a whopping 23% in electronic trading, after the retailer reported first-quarter earnings and revenue that surpassed analyst expectations, and raised its full-year earnings forecast. The reaction has DKS stock on track to open at its highest point since August.
  5. International trade data came in at a slimmer-than-expected $68.2 billion in April. The Fed's Beige Book will be released this afternoon. Box (BOX), DSW (DSW), Five Below (FIVE), Guess? (GES), and Tilly's (TLYS) are scheduled to announce earnings.

stock market news may 30

Italy, Bank Stocks Weigh Down Asia

Stocks in Asia took a turn for the worse today, closing significantly lower as political tensions from Italy continued to weigh on investors globally. A stronger yen and a weak financial sector pushed Japan's Nikkei down 1.5%. Meanwhile, Hong Kong's Hang Seng ended 1.4% lower, South Korea's Kospi shed 2%, and China's Shanghai Composite took the biggest loss, sacrificing 2.5%.

Markets in Europe are mixed at midday, as traders digest reports that Italy could hold another election a soon as July. London's FTSE 100 is up 0.3%, Germany's DAX is 0.7% higher, while France's CAC 40 is looking at a 0.3% loss.


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