Futures on the DJIA are pulling back as oil prices slide
The
Dow Jones Industrial Average (DJIA) is set to snap its three-day winning streak -- and retreat from
Thursday's notable milestone -- with Dow futures sitting below fair value this morning. Stocks are reacting to a sharp drop in oil prices, with May-dated crude futures off 2.5% at $40.48 per barrel, on reports that Iran will not be sending its energy minister to this
Sunday's meeting of global oil producers in Doha, Qatar. Instead, Tehran will be represented by its Organization of the Petroleum Exporting Countries (OPEC) governor.
Meanwhile, bank earnings will continue to be in focus, following Citigroup Inc's (NYSE:C) latest report. Additionally, a strong reading on the Empire State manufacturing index -- which surged to its highest level since January 2015 in April -- could draw some attention.
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are 24 points below fair value.
5 Things You Need to Know Today
- China's gross domestic product (GDP) pointed to a quarter-over-quarter slowdown, sending global stocks lower.
- The Chicago Board Options Exchange (CBOE) saw 781,226 call contracts traded on Thursday, compared to 534,856 put contracts. The resultant single-session equity put/call ratio rose to 0.68, while the 21-day moving average edged down to 0.68.
- Brazil's highest court has given the go-ahead for a Sunday vote that could begin impeachment proceedings to possibly oust Dilma Rousseff from her presidency. The drama surrounding the political upheaval has sparked sharp moves in the mining sector of late, and mining stocks Freeport-McMoRan Inc (NYSE:FCX) and Vale SA (ADR) (NYSE:VALE) are both lower ahead of the bell.
- Energy-related losses and weak trading business took a big bite out of Citigroup Inc's first-quarter profit, which plunged 27% year-over-year. Nevertheless, the $1.10 per share C earned was enough to beat the consensus estimate, and -- similar to its sector peers -- shares of the bank stock are up 2.3% in electronic trading.
- Fresh off a new partnership with one e-commerce concern, Canada-based software giant Mitel Networks Corporation (NASDAQ:MITL) said it will buy content-sharing specialist Polycom Inc (NASDAQ:PLCM) in a cash-and-stock deal valued at roughly $1.96 billion. MITL has plunged 5.2% in pre-market trading, while PLCM is up more than 1%.
Earnings and Economic Data
The Thomson Reuters/University of Michigan consumer sentiment survey, industrial production, and Treasury International Capital (TIC) data are due. Plus, Chicago Fed President Charles Evans will speak at a seminar in the nation's capital. The week's earnings reports will wrap up with results from Charles Schwab (SCHW), Infosys (INFY), and Reynolds American (RAI). To see what is coming up on next week's schedule, click here.
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