Dow Futures Pop 186 Points as Shutdown Threat Fades

Lawmakers have reached a tentative deal to avoid another federal shutdown

by Lillian Currens

Published on Feb 12, 2019 at 9:27 AM

Dow Jones Industrial Average (DJI) futures are trading 186 points above fair value this morning, after U.S. lawmakers reached a tentative bipartisan budget deal to avoid a government shutdown ahead of this Friday's deadline. Meanwhile, on the global economic front, both the U.S. and China are scrambling to reach a trade agreement before the March deadline. Elsewhere, earnings reports continue to roll in, with Under Armour (UAA) set to open lower after its quarterly results. 

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

  • Boeing stock bounces on a bull note. 
  • 2 car stocks with revved up option activity. 
  • Puts pop for this e-tail stock
  • Plus, Under Armour drops on earnings; Cisco stock gets a downgrade; and Colgate-Palmolive names a new CEO. 

dow futures feb 12

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 768,348 call contracts traded on Monday, compared to 464,223 put contracts. The single-session equity put/call ratio dropped to 0.60, and the 21-day moving average stayed at 0.63.
  2. Under Armour (NYSE:UAA)  stock is down 4.7% in pre-market trading, despite beating fourth-quarter earnings and revenue expectations. In a conference call, the athletic apparel company warned that it expects North American revenue to decline during the first quarter.
  3. Cisco Systems, Inc. (NASDAQ:CSCO) shares are slipping 1.2% lower ahead of the bell on a downgrade from Morgan Stanley. The analyst just cut the communication concern's rating to "equal-weight" from "overweight," and lowered its price target to $49 from $51. CSCO stock has enjoyed a rally off its Dec. 24 eight-month low of $40.25, but recently found a ceiling at the $47.50 area.
  4. The shares of Colgate-Palmolive (NYSE:CL) are up 0.4% in electronic trading, after appointing Chief Operating Officer Noel Wallace as its new CEO, effective April 2. CL shares recently broke out above their 200-day moving average for the first time since September. 
  5. Today's economic schedule will bring the Job Openings and Labor Turnover Survey (JOLTS). Kansas City Fed President Esther George and Cleveland Fed President Loretta Mester are expected to speak after the close. Activision Blizzard (ATVI), Akamai Technologies (AKAM), Fossil (FOSL), Groupon (GRPN), Intercept Pharmacueticals (ICPT), Molson Coors Brewing (TAP), Shopify (SHOP), TripAdvisor (TRIP), Twilio (TWLO), and Under Armour (UAA) will all report earnings today. 
     

buzz stocks feb 12

 

Asia Continues to Soar on Trade Optimism

Markets in Asia were higher across the board today, as trade talks between the U.S. and China continued, now with an emphasis on intellectual property. The region was led by a 2.6% jump from Japan's Nikkei, powered by a big day from chip name Renesas Electronics. China's Shanghai Composite added 0.7%, while Hong Kong's Hang Seng gained 0.1%. Lastly, South Korea's Kospi added 0.5% thanks to a resurgent tech sector.

Over in Europe, stocks inched higher as well, boosted by news that U.S. lawmakers had reached an agreement in principle to avoid another government shutdown. London's FTSE 100 is up 0.1% at last check, as U.K. Prime Minister Theresa May addressed parliament on Brexit, disclosing that more time may be needed to complete the process. Elsewhere, the French CAC 40 is up 0.9% after an earnings blowout from Michelin, while the German DAX sports a 1.1% lead.


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