Dow Futures Signal Fourth Straight Win After Roaring Jobs Report

However, Nasdaq futures are lower after Apple earnings

by Patrick Martin

Published on Nov 2, 2018 at 9:14 AM
Updated on Jun 24, 2020 at 10:16 AM

Futures on the Dow Jones Industrial Average (DJI) are rising once more, trading more than 200 points above fair value, thanks to a strong monthly nonfarm payrolls report. The data indicated the U.S. gained 250,000 jobs in October, beating economists' forecast of 190,000. The blue-chip index is heading toward its fourth straight win, with well-received earnings from Exxon Mobil (XOM) and Chevron (CVX) also helping. However, Nasdaq-100 Index (NDX) futures are struggling, due to a subpar quarterly report from FAANG icon Apple (AAPL).

Investors are also digesting a Bloomberg report saying President Donald Trump has asked officials to start drawing up trade terms with China, though the White House denied the rumors.

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

  • This airline stock could take off this month.
  • China trade optimism boosted JD stock.
  • The stars are aligning for a big Square stock bounce.
  • Plus, Alibaba reports earnings; Starbucks eyes new highs; and possible new lows for Kraft Heinz after earnings miss.

Stock Futures Chart Nov 2

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.35 million call contracts traded on Thursday, the most since April. This is compared to 683,966 put contracts. The single-session equity put/call ratio dropped to 0.51 -- the lowest since June -- and the 21-day moving average remained at 0.68.
  2. Alibaba Group Holding Ltd (NYSE:BABA) stock is up 0.6% in electronic trading, after the Chinese internet name reported per-share earnings that exceeded analyst expectations. However, the company's revenue missed estimates, and it lowered its guidance for 2019. BABA stock, a frequent target of bear notes, fell to an annual low of $103.06 on Tuesday, but yesterday topped its 30-day moving average for the first time since July.
  3. Starbucks Corporation (NASDAQ:SBUX) stock is up 7.8% ahead of the bell, after the company -- and Alibaba partner -- reported fiscal fourth-quarter earnings and revenue above Wall Street estimates. SBUX stock has been on a tear since its late-June bottom, and is set to blow past its Jan. 24 annual high of $61.94.
  4. Shares of Kraft Heinz Co (NASDAQ:KHC) are down 6.6% in electronic trading, after the food company's earnings fell short of estimates. In response, four brokerages have issued price-target cuts, including to $47 from $59 at Susquehanna, which also downgraded the stock to "negative" from "neutral." KHC is on track to open at a new all-time low. 
  5. Traders will digest reports on motor vehicle sales and factory orders later today. The earnings week will end with reports from Cinemark (CNX), Duke Energy (DUK), Newell Brands (NWL), and Seagate Technology (STX).

stock market news nov 2

Trade Optimism Boosts Asian, European Markets

Asian markets rallied to end the week, as traders reacted to President Trump's upbeat tone on trade talks with China. Hong Kong's Hang Seng outpaced its peers, adding 4.2% on tailwinds from Tencent and casino stocks. Elsewhere in the region, surging blue-chip tech stocks carried South Korea's Kospi to a 3.5% gain, while China's Shanghai Composite added 2.7% and Japan's Nikkei tacked on 2.6%.

European stocks are trading in positive territory at midday, as hope of a potential U.S.-China trade deal boosts auto and luxury retail stocks. At last check, the German DAX is up 1.8%, the French CAC 40 is 1.3% higher, and London's FTSE 100 is sporting a 0.8% lead as speculation swirls a Brexit deal could be reached by Nov. 21.


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