Stocks Ready to Rally After Strong Jobs Report

The S&P is pacing for a 4th straight weekly win

by Josh Selway

Published on Nov 1, 2019 at 9:15 AM

Dow Jones Industrial Average (DJI) futures are on the rise today thanks to the impressive jobs report for October. Specifically, nonfarm payrolls for the month increased by 128,000, blowing past estimates of 75,000. Traders are also considering another round of corporate earnings, headlined by Dow components Exxon Mobil (XOM) and Chevron (CVX). Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also trading well above fair value, as stocks look set to overcome yesterday's trade headwinds, setting the former index up for a fourth straight weekly win.

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

US stock futures nov 1

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.14 million call contracts traded on Thursday, compared to 807,905 put contracts. The single-session equity put/call ratio moved up to 0.71, while the 21-day moving average came in at 0.66.
  2. Pinterest Inc (NYSE:PINS) is falling fast post-earnings, down 21% in pre-market trading. The company's third-quarter sales disappointed, and it also issued a downbeat full-year outlook. While we noted some put activity in recent weeks, traders at the major exchanges were still mostly focused on call buying coming into today, the sell-off could be especially painful for options traders.
  3. Cloud solutions provider Arista Networks Inc (NYSE:ANET) is also getting destroyed after its earnings release. While the company topped both bottom- and top-line estimates for the third quarter, it issued an ugly fourth-quarter forecast. If the stock's 28% pre-market loss holds, it'll be trading in two-year-low territory.
  4. Elsewhere on the earnings front, United States Steel Corporation (NYSE:X) is edging higher before the open, last seen up 5.5%. The bump comes after the company reported a smaller-than-expected loss for the quarter, but even this upside move would have it below the 100-day moving average still.
  5. Markit's manufacturing purchasing managers index (PMI), the Institute for Supply Management's (ISM) manufacturing index, and construction spending. New York Fed President John Williams is slated to speak. Earnings from AbbVie (ABBV), Alibaba (BABA), Cboe Global Markets (CBOE), Cheniere Energy (LNG), Colgate-Palmolive (CL), LyondellBasell (LYB), and Newell Brands (NWL) are due. Next week, Walt Disney (DIS) headlines the earnings schedule.

stock market news nov 1

Manufacturing Data in Focus in China

Most Asian markets closed higher today. China's Shanghai Composite's 1% pop outpaced its regional peers, after the Caixin manufacturing PMI rose to 51.7 in September -- its third straight month above the key 50 mark, which marks expansion. New export orders also swung into expansion territory, hitting their highest mark since February 2018. South Korea's Kospi and Hong Kong's Hang Seng gained ground, too, adding 0.8% and 0.7%, respectively. On the flip side, Japan's Nikkei gave back 0.3%, as a strengthening yen pressured exporters.

European stocks are modestly higher at midday, with auto and mining shares rising on China's upbeat manufacturing data. Earnings are also in focus, with logistics firm DSV Panalpina surging on the firm's strong quarterly profit, while lender Danske Bank slumps on weak guidance. At last check, the German DAX and the French CAC 40 are each flirting with 0.4% leads, while London's FTSE 100 is up 0.3%.


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