Dow Futures Surge as Blue-Chip Earnings Roll In

Dow Jones Industrial Average (DJI) futures are trading above fair value, thanks to positive earnings reactions for blue chips UnitedHealth (UNH) and Johnson & Johnson (JNJ). Dovish comments from Boston Fed President Eric Rosengren could also be creating tailwinds, with the central banker saying last night, "It's appropriate for interest rates to be paused right now." The S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are poised for positive starts, too, in what looks to be an up day on Wall Street.

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

• Schaeffer's Senior V.P. of Research Todd Salamone takes a look at the most extreme VIX positioning since 2017.
• How options traders reacted to this sinking drug stock.
• FAANG stock flashing buy signal before earnings.
• Plus, more on those blue-chip earnings reports; and a Bank of America revenue miss.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 869,422 call contracts traded on Monday, compared to 497,774 put contracts. The single-session equity put/call ratio rose to 0.57, while the 21-day moving average remained at 0.61.
2. UnitedHealth Group Inc (NYSE:UNH) reported adjusted first-quarter earnings of $3.73 per share on $60.31 billion in revenue -- more than analysts were expecting. The health insurer also boosted its 2019 earnings forecast, which Cantor Fitzgerald called "notable." UNH shares plunged more than 10% last week on concerns over potential legislative action against the sector, but the Dow stock is up 3% in electronic trading.
3. Johnson & Johnson (NYSE:JNJ) said adjusted first-quarter earnings arrived at $2.10 per share, while revenue landed at $20 billion, with both figures exceeding consensus estimates. The consumer products and pharmaceutical giant also raised its 2019 adjusted sales growth forecast, in part due to strong demand for cancer drugs Darzalex and Imbruvica. After closing last night at $136.52, JNJ stock is 1.7% higher ahead of the bell.
4. First-quarter adjusted profit for Bank of America Corp (NYSE:BAC) came in at a stronger-than-anticipated 71 cents per share, but revenue for the three-month period fell short -- slipping to $23 billion. BAC stock settled last night at $29.84 -- a chip-shot away from its Aug. 8 annual high of $31.91 -- but is down 2% in pre-market trading.
5. Dallas Fed President Robert Kaplan will speak, while industrial production data and the National Association of Home Builders (NAHB) housing market index are due. IBM (IBM), BlackRock (BLK), Progressive (PGR), and WesBanco (WSBC) will report earnings.

Asian Stocks Higher as U.S.-China Trade Talks Continue

Asian markets ended higher today, as trade talks between the U.S. and Japan commenced, and on reports that the U.S. and China are nearing a deal. Despite Bank of Japan Governor Haruhiko Kuroda’s negative comments that "some sort of protectionism" around global trade could put the world economy at even greater risk, Japan’s Nikkei tacked on 0.2%, Hong Kong’s Hang Seng was 1.1% higher, and China’s Shanghai Composite tacked on 2.4%. Asiana Airlines continued to lift South Korea’s Kospi, too, which gained 0.3%.

European stocks are all slightly above breakeven at midday, as traders anticipate U.S. corporate earnings and the European Central Bank meeting. London’s FTSE 100 is up 0.5%, and the French CAC 40 has inched 0.1% higher. The biggest gainer so far is the German DAX, up 0.7% after retail concern Zalando predicted a first-quarter operating profit.