Stock Futures Slip; Oil Prices Rise

OPEC and its allies declined to boost oil production over the weekend

Sep 24, 2018 at 9:20 AM
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Futures on the Dow Jones Industrial Average (DJI) are trading below fair value this morning, after the blue-chip index nabbed a fourth straight win and a second consecutive record high on Friday. While Wall Street's attention is trained on this week's Fed meeting -- with a rate hike widely expected -- today's top story will likely be soaring oil prices, after major oil producers at an Organization of the Petroleum Exporting Countries (OPEC) meeting failed to commit to a plan to boost crude output, as a recent tweet from President Donald Trump urged. At last check, November crude futures were up 1.9% at $72.12 per barrel.

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

  • Ditch these 2 bank stocks before the Fed rate hike.
  • History says to buy short-term call options on Garmin stock.
  • Plus, two gold miners team up; Sirius XM buys Pandora; and UBS says "sell" this casino stock.

us stock index futures fair value on sept 24

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.3 million call contracts traded on Friday, compared to 737,258 put contracts. The single-session equity put/call ratio rose to 0.57, and the 21-day moving average remained at 0.59.
  2. Barrick Gold Corp (NYSE:ABX) will buy Randgold Resources Ltd. (NASDAQ:GOLD) in an all-stock deal valued at roughly $18.3 billion -- with Randgold stakeholders receiving 6.1280 new Barrick shares for each GOLD share they currently hold. ABX stock is up 3.6% ahead of the bell -- set to open near recent resistance in the $10.80 region -- while GOLD is 7% higher in electronic trading.
  3. Sirius XM Holdings Inc (NASDAQ:SIRI) said it will purchase Pandora Media Inc (NYSE:P) for about $3.5 billion in stock. This translates into about $10.14 per Pandora share, an 11.6% premium to Friday's close at $9.09. SIRI shares are down 4%, but could find support near their 160-day moving average, while P stock is set to open 6.3% higher.
  4. UBS initiated coverage on Caesars Entertainment Corporation (NASDAQ:CZR) with a "sell" rating and $9 price target, citing weak financials and increasing competition for the casino operator. After rising 1.4% last week on takeover chatter, CZR stock is 2.8% lower at $10.50 in electronic trading,
  5. The Chicago Fed National Activity Index and the Dallas Fed manufacturing survey are out today. Ascena (ASNA) will report earnings.

stock market news sept 24

Tariff Woes Hit Global Stocks

There wasn't a lot of action for stocks in Asia, with markets in Japan, China, and South Korea all closed for holidays. That left just Hong Kong's Hang Seng, which fell 1.6% on the day. The losses came as investors responded to the initiation of new China-U.S. tariffs.

In Europe, stocks are also being pressured by the new tariffs. As such, shares of the major automakers are slipping, while mining stocks also struggled – save Randgold Resources, which is soaring on news of the Barrick merger. Another big winner is U.K. broadcaster Sky, as the company accepted a $40 billion takeover bid from Comcast. London's FTSE 100 and France's CAC 40 were last seen down 0.2%, and Germany's DAX has shed 0.3%.


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