Earnings out of Dow components have been strong
Dow Jones Industrial Average (DJI) futures are pointing to a positive open this morning ahead of a huge day of earnings on Wall Street. Strong quarterly reports from blue chips McDonald's (MCD), Merck (MRK), and Pfizer (PFE) are getting the ball rolling for the 30-stock index, while former Dow component General Electric (GE) is also set to soar after earnings.
However, the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) could be under pressure at the open, due to a sharp pullback in Alphabet (GOOGL) shares following disappointing first-quarter sales. Tech will remain in focus post-close, as well, with Apple (AAPL) set to report, while on the economic front, traders will have a ton of housing data to sift through.
Continue reading for more on today's market, including:
- Schaeffer's Senior V.P. of Research Todd Salamone explains why a small-cap breakout could be imminent.
- Options bulls expect this drug stock to double.
- How Canopy Growth added to its big April gains.
- Plus, a soaring tech stock; confirmed M&A news; and analysts up the ante on Ford.
5 Things You Need to Know Today
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The Chicago Board Options Exchange (CBOE) saw 1.11 million call contracts traded on Monday, compared to 674,174 put contracts. The single-session equity put/call ratio fell to 0.61, while the 21-day moving average stayed at 0.60.
- One of the biggest pre-market movers this morning is Impinj Inc (NASDAQ:PI), with the radio frequency technology expert reporting better-than-expected first-quarter results last night, along with an upbeat outlook. As such, shares of PI are up more than 23% before the open, trying to build off an already strong start to 2019.
- Workplace benefits and solutions provider WageWorks Inc (NYSE:WAGE) is soaring this morning, after the company confirmed reports it received a buyout offer from HealthEquity (HQY). Interestingly, HealthEquity's CEO is actually the founder of WageWorks. WAGE stock is up 16% this morning.
- Auto giant Ford Motor Company (NYSE:F) continues to enjoy positive attention after last week's surprising earnings beat. Jefferies this morning lifted its price target on F shares to $12.50 from $11, saying the company's quarterly results confirmed it's on solid footing as it revamps its business. The stock hasn't traded above $12.50 since January 2018.
- Pending home sales, consumer confidence, the Chicago purchasing managers index (PMI), the S&P Corelogic Case-Shiller home price index, and employment cost index are due, while the Fed meeting kicks off. Apple (AAPL), Advanced Micro Devices (AMD), Blue Apron (APRN), Eli Lilly (LLY), General Motors (GM), Kraft Heinz (KHC), Lumber Liquidators (LL), MasterCard (MA), Seagate Technology (STX), Shopify (SHOP), Sprint (S), and Twilio (TWLO) will report earnings.
Mixed Trading Overseas
Asian markets ended mixed today. China’s Shanghai Composite was 0.5% higher, after a pair of weaker-than-expected manufacturing reports tempered last week's concerns that the government would tap the brakes on economic stimulus efforts. South Korea’s Kospi fell 0.6% as Samsung Electronics posted a first-quarter drop in profits, while Hong Kong’s Hang Seng fell 0.7%. Japan's stock market will reopen May 7.
Europe is mostly lower at midday, despite better-than-expected gross domestic product (GDP) data for the eurozone. Instead, resources stocks are weighing on regional bourses after the unexpected drop in China's official purchasing managers index (PMI). At last look, London’s FTSE 100 is down 0.1%, and the French CAC 40 has lost 0.2%, while Germany’s DAX has inched 0.04% higher.