Tech Set to Rise On Blowout Facebook Report

FB's huge post-earnings move was foreshadowed in the options pits

by Josh Selway

Published on Jan 31, 2019 at 9:10 AM
Updated on Jan 31, 2019 at 9:10 AM

U.S. stock futures are trading mixed this morning, coming off of yesterday's Fed-driven rally. While the Dow Jones Industrial Average (DJI) is set for a lower open with DowDuPont (DWDP), the tech-heavy Nasdaq-100 Index (NDX) is eyeing a strong start, as traders applaud Facebook's (FB) strong financial results. General Electric (GE) shares are set to soar after earnings, as well, after the industrial giant posted better-than-expected quarterly sales. Others on Wall Street could be focusing on a sharp rise in weekly jobless claims, as the number of Americans filing for unemployment benefits jumped to the highest level since late 2017. Elsewhere, President Donald Trump said high-level trade talks with China are "going well."

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

  • The penny stock expected to double.
  • The Apple supplier that could have a big February.
  • Bears could cash in on these 2 retail stocks.
  • Plus, steel stock falls -- as expected; Tesla shares in the red; and traders nail a huge FB move.

US stock futures jan 31

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.23 million call contracts traded on Wednesday, compared to 780,028 put contracts. The single-session equity put/call ratio moved down to 0.63, and the 21-day moving average was 0.64. 
  2. Just as Jefferies predicted, a disappointing turn in the earnings booth is weighing on United States Steel Corporation (NYSE:X). X stock is trading down 6.4% before the open. Traders are reacting to not only a fourth-quarter earnings miss, but a weak current-quarter outlook on top of that. The steel concern was already down roughly 40% in the past year.
  3. Another volatile day appears to be ahead for Tesla Inc (NASDAQ:TSLA). Not only did the electric automaker deliver mixed quarterly results, but its chief financial officer (CFO), Deepak Ahuja, is resigning -- for a second time. TSLA shares are on pace to open down 3.7%.
  4. Facebook's strong quarter has the shares up 11.4% before the open. Options traders were betting on a double-digit post-earnings move from the FAANG stock, which is on pace to open at levels not seen since September.
  5. Today will bring personal income and outlays, the employment cost index, the Chicago purchasing managers manufacturing index (PMI), and the Fed balance sheet. The day will usher in corporate earnings from Amazon (AMZN), Altria (MO), Deckers Outdoor (DECK), Hershey Foods (HSY), MasterCard (MA), Sprint (S), and UPS (UPS).

stock market news jan 31

Asia Rises on U.S. Strength

It was a mostly higher finish in Asia today after the U.S. Fed struck a dovish tone at its January meeting. Japan's Nikkei bounced back from Wednesday's dip, adding 1.1% as SoftBank soared 4.8%. China's Shanghai Composite rose 0.4% after the official manufacturing purchasing managers index (PMI) rose for the first time in four months, edging up to 49.5 in January -- even as it remained in contraction territory for a second straight month. Hong Kong's Hang Seng tacked on 1.1%, while South Korea's Kospi gave back 0.06% on a negative earnings reaction for Samsung Electronics.

European markets are mixed at midday, as traders weigh a fresh round of earnings reports. U.K. consumer products specialist Unilever reported a fourth-quarter revenue miss, sending its shares down more than 2%. Nevertheless, London's FTSE 100 is up 0.5% on well-received results from oil major Royal Dutch Shell and beverage name Diageo. Elsewhere, the French CAC 40 is flirting with a 0.1% lead, while the German DAX is down 0.3%.

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