Corporate earnings so far today have been strong
Dow Jones Industrial Average (DJIA) futures are trading comfortably above fair value, as stocks eye a move higher out of the gate. A strong round of corporate earnings could help equities bounce back from yesterday's risk-off session, with Dow components Goldman Sachs (GS) and Johnson & Johnson (JNJ) both reporting earnings beats. Tech stocks will be in focus after the close, when IBM (IBM) and Netflix (NFLX) unveil quarterly results. Traders will also have economic data to digest after the open, including the Labor Department's Job Openings and Labor Turnover Survey (JOLTS).
Continue reading for more on today's market, including:
- Schaeffer's Senior V.P. of Research Todd Salamone identified the VIX level that could signal a stock rebound.
- Why an analyst sees major upside for American Eagle stock.
- How options traders are playing rising gold prices.
- Plus, a closer look at blue-chip earnings; Walmart makes an announcement; and Twilio's big buy.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 821,270 call contracts traded on Monday, compared to 499,956 put contracts. The single-session equity put/call ratio dipped to 0.61 and the 21-day moving average stayed at 0.62.
- Digging deeper into this morning's earnings releases, JNJ is set for a slightly positive open after third-quarter earnings and revenue beat estimates -- good news for recent bulls. GS and Morgan Stanley (NYSE:MS) are both set for even more impressive jumps when the market opens, with the latter set to add 2.7% -- though this would still leave MS well below its 40-day moving average.
- Walmart Inc (NYSE:WMT) utilized this busy news morning to lower its full-year profit outlook, citing its $16 billion purchase of Indian e-commerce giant Flipkart. WMT shares have been trending lower since a bull gap in mid-August, and they're now encountering resistance at their 30-day moving average.
- Twilio Inc (NYSE:TWLO) announced Monday night that it's buying email technology specialist SendGrid for $2 billion in stock. TWLO stock has been outstanding over the past year, and even though the shares are set to dip on the M&A announcement, they could continue to find technical support near their 80-day moving average.
- Today's economic calendar features industrial production numbers, the National Association of Home Builders (NAHB) housing market index, and Treasury International Capital (TIC) data. BlackRock (BLK), CSX (CSX), eBay (EBAY), Lam Research (LRCX), Progressive (PGR), and United Continental (UAL) will release earnings.
Inflation Data, U.S.-Saudi Tensions Weigh on Chinese Stocks
Increased tensions between the U.S. and Saudi Arabia sent Asian markets to a mixed close. China's Shanghai Composite fell 0.9% amid the latest inflation data -- which showed a smaller-than-expected 2.5% lift in consumer prices for September, and a wider-than-forecast 3.6% pop in producer prices -- as well as lackluster Golden Week sales. Japan's Nikkei saw a noteworthy gain of 1.3%, while Hong Kong's Hang Seng edged 0.07% higher. Meanwhile, South Korea's Kospi closed flat.
Stocks in Europe are mixed in afternoon trading, with investors eyeing earnings, global trade tensions, and Brexit negotiations. As the pound pushes higher after data showed wage growth rising over the summer at its fastest pace since 2009, London's FTSE 100 is down 0.1%. On the flip side, Germany's DAX and France's CAC 40 are both up 0.6%, at last check.