Apple, Netflix Lift Nasdaq Futures

Futures on the Dow Jones Industrial Average (DJI) are trading slightly below fair value this morning, with the blue-chip index set for a breather after two big days of gains. However, the tech sector continues to outperform, with futures on the Nasdaq-100 Index (NDX) higher ahead of the bell. More specifically, shares of Apple (AAPL) are on track to open near yesterday's record peak, while fellow FAANG stock Netflix (NFLX) is also flirting with all-time-high territory ahead of the bell on news it will replace Monsanto (MON) in the S&P 100 Index (OEX), effective Thursday morning.

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

• The most bullish stock sector right now, per Schaeffer's Senior V.P. of Research Todd Salamone.
• Breaking down a massive bullish options bet on oil.
• 2 biotech stocks that could blast off this summer.
• Plus, Twitter makes a big move; First Solar stock gets downgraded; and Starbucks drops as Schultz departs.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 1.07 million call contracts traded on Monday, compared to 587,803 put contracts. The single-session equity put/call ratio fell to 0.55, while the 21-day moving average remained at 0.59.
2. As Bayer prepares to complete its Monsanto acquisition later this week, Twitter Inc (NYSE:TWTR) has been tapped to replace MON on the S&P 500 Index (SPX) effective ahead of Thursday's open. TWTR stock is trading up 4.3% ahead of the bell, on track to open near a three-year high.
3. BofA-Merrill Lynch downgraded First Solar, Inc. (NASDAQ:FSLR) to "neutral" from "buy," and slashed its price target to $63 from $83 -- just north of Monday's close at $61.74. This bear note follows the stock's recent sell-off, with the shares down 18% from their mid-May highs -- exacerbated yesterday by news that China is cutting subsidies for solar projects. FSLR stock is down 3.8% in electronic trading, and another daily loss will make it five in a row for the shares.
4. Howard Schultz said he is stepping down as executive chairman of Starbucks Corporation (NASDAQ:SBUX), sparking speculation the coffee chain's former CEO will make a move into politics. SBUX stock is trading 1% lower ahead of the bell, and could test its 200-day moving average today -- a trendline that's cushioned the equity's choppy price action in recent months.

5. The monthly JOLTS report, Markit's purchasing managers services index (PMI), and the Institute for Supply Management's (ISM) non-manufacturing index will be released today. Ambarella (AMBA), Duluth (DLTH), Francesca's (FRAN), Genesco (GCO), Navistar (NAV), and Ollie's Bargain Outlet (OLLI) will report earnings.

Tech Rally Boosts Asian Stocks

Major Asian benchmarks closed higher thanks to broad gains from tech stocks, following the lead of their U.S. peers. Traders also digested news that Chinese regulators are investigating makers of DRAM chips, namely Micron Technology, Samsung Electronics, and SK Hynix. China’s Shanghai Composite led the way with a 0.8% win, with stocks also benefiting from an upbeat survey showing solid growth out of the services sector in the region. Elsewhere, Hong Kong’s Hang Seng, Japan’s Nikkei, and South Korea’s Kospi all added 0.3%.

In Europe, stocks are mixed at midday. While France’s CAC 40 and Germany’s DAX are sporting respective gains of 0.6% and 1.1%, the FTSE 100 is sliding, last seen 0.5% lower. London’s primary benchmark is being dragged down by big losses from banking giant RBS, after the British government offloaded another stake in the company at a loss. Also weighing on U.K. stocks is a sharp rise in the pound, following better-than-expected data out of the services sector.