Dow Futures Signal Higher Start After Record Session

The Dow is heading toward its best week since July

Sep 21, 2018 at 9:12 AM
facebook twitter linkedin

Futures on the Dow Jones Industrial Average (DJI) are trading modestly above fair value this morning, one day after the blue-chip index sailed to a new record high. Bank stocks have led most of this rally in the lead-up to next week's Fed meeting, and JPMorgan (JPM) and Goldman Sachs (GS) appear ready to extend their upside today. Tech shares could also build on yesterday's rebound, with Apple (AAPL) stock up ahead of the bell. At this pace, the Dow is on track for its best week since mid-July, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are poised for weekly gains, too.

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

us stock index futures fair value on sept 19

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.25 million call contracts traded on Thursday, compared to 703,351 put contracts. The single-session equity put/call ratio dipped to 0.56, and the 21-day moving average remained at 0.59.
  2. The U.S.-China trade dispute is coming home to roost for chipmaker Micron Technology Inc (NASDAQ:MU), which has dropped 4% ahead of the bell after disappointing guidance on fiscal first-quarter gross margins and revenue. Chief Financial Officer David Zinsner said, "Clearly, tariffs are impacting us, probably to the tune of 50 to 100 basis points." MU has been hit with multiple price-target cuts from brokerage firms this morning, with the freshly reduced forecasts ranging from $103 at Stifel to $48 at Morgan Stanley.
  3. Home security specialist ADT Inc (NYSE:ADT) is extending its Thursday afternoon gains in electronic trading this morning, following news that the company is teaming with Amazon to integrate Alexa Guard with the ADT Pulse security system. After surging 6.6% by yesterday's close, ADT is up 5.4% heading into the opening bell.
  4. Under Armour Inc (NYSE:UAA) has advanced nearly 2% in premarket trading, bolstered by a J.P. Morgan Securities upgrade to "neutral" from "underweight." The firm also raised its price target to $20 from $16, explaining in a note to clients that it now sees the risk/reward profile for UAA as "balanced." UAA closed Thursday squarely at $20 per share, up 38.6% for 2018.
  5. Today's calendar features Markit's flash composite purchasing managers index (PMI) and the Baker-Hughes rig count, while next week's schedule will focus on the Fed meeting.

stock market news sept 21

Bank, Mining Stocks Boost European Markets

Asian stocks followed the lead of their U.S. counterparts, notching strong daily and weekly gains. China's Shanghai Composite jumped 2.5% to its best closing price since Aug. 1, while Hong Kong's Hang Seng was close behind with a 1.7% gain. Japan's Nikkei also had a strong showing, gaining 0.8% as the yen weakened. Traders in Japan also considered the core consumer price index for August, which rose 0.9% to match expectations. Finally, South Korea's Kospi finished up 0.7%.

The risk-on approach has spread to Europe as well, where stocks are sporting comfortable gains halfway through the day. One story grabbing headlines is Uber's reported interest in British food delivery company Deliveroo, weighing on publicly listed rivals Just Eat and Delivery Hero. Bank stocks are outperforming, and shares of mining firms are also getting a boost thanks to the strength out of Asia. London's FTSE 100 was last seen up 0.9%, the French CAC 40 is sporting a 0.6% gain, and Germany's DAX is up 0.5%.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners