Dow, S&P Set Sights on Another Win as Futures Rise

Microsoft is also grabbing headlines after a major product announcement

by Josh Selway

Published on Jul 10, 2018 at 8:57 AM

Coming off the blue-chip index's best day in a month, Dow Jones Industrial Average (DJI) futures are pointing to a fourth straight session of gains. While the stock market calendar remains somewhat light, traders at least have a major earnings release to consider in the form of PepsiCo's (PEP) second-quarter results. The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) is due out this morning, too. Meanwhile, S&P 500 Index (SPX) futures are also higher, as the broad-market benchmark eyes its own four-day winning streak.

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

  • Schaeffer's Senior V.P. of Research Todd Salamone highlights the options indicator stock traders need to watch.
  • Netflix stock just got another huge price target.
  • A penny stock that exploded on M&A news yesterday.
  • Plus, snack sales help PepsiCo; Microsoft's big announcement; and another Quest Diagnostics upgrade.

stocks today

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 989,968 call contracts traded on Monday, compared to 523,059 put contracts. The single-session equity put/call ratio fell to 0.53, while the 21-day moving average stayed at 0.58.
  2. PepsiCo stock is trading up 3% ahead of the open, after the company's snack business helped offset weaker soda sales in the second quarter, leading to a top- and bottom-line beat for the period. Bearish sentiment had been ramping up on PEP stock ahead of the event, but if the pre-market gains holds, the shares would enjoy their highest close since mid-March.
  3. Microsoft Corporation (NASDAQ:MSFT) is in focus this morning, after the company announced a new 10-inch Surface Go laptop, which starts at $399. MSFT stock closed Monday at $101.85, within striking distance of last month's record high of $102.69, and the shares are trading slightly higher before the open.
  4. As for some analyst activity this morning, Quest Diagnostics Inc (NYSE:DGX) is once again enjoying bullish attention. Evercore ISI upgraded DGX stock to "outperform" from "in line" and moved its price target up to $121 -- into record-high territory. The diagnostics concern has been strong in 2018, thanks to a number of bullish analyst notes.
  5. Outside of PEP, there are no other earnings releases to watch.

stock market news july 10

Nikkei Leads In Asia; European Stocks Gain

It was a mostly higher finish in Asia today, with Tokyo stocks outperforming their regional peers. Specifically, Japan's Nikkei added 0.7%, as Yahoo Japan surged on news Altaba will sell some of its remaining stake in the tech name to SoftBank. Elsewhere, China's Shanghai Composite added 0.4%, after data showed inflation rose last month. South Korea's Kospi also tacked on 0.4%, though Hong Kong's Hang Seng erased earlier gains to close down 0.02%.

European stocks are trading in positive territory at midday, with the energy sector leading the pack as oil prices gain ground. Traders are also keeping a close eye on this week's NATO summit between U.S. President Donald Trump and European leaders, as well as a strong reading on eurozone home prices, which rose at their fastest past since 2007 in the first quarter. At last check, the German DAX and the French CAC 40 are each flirting with 0.5% gains, while London's FTSE 100 is up 0.1%.

VIX Options Signal Points to Possible Volatility Spike
VIX open interest is at an annual low
Altaba Stock May Be Sending Up a Buy Signal
AABA has seen some unusual options activity in the past couple of weeks
VFC Call Options Hot Ahead of Fiscal First-Quarter Earnings
VFC stock touched an all-time high earlier today
From Schaeffer's Pro Traders
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