Dow Jones Industrial Average Futures Surge on Alcoa Earnings Beat

Dow Jones Industrial Average (DJIA) futures are trading solidly above fair value, with both the Dow and the S&P 500 Index (SPX) on pace to notch new highs. Stocks are reacting to a strong start to second-quarter earnings season, with aluminum giant Alcoa Inc (NYSE:AA) beating both top- and bottom-line estimates. Additionally, the confirmation of Theresa May as the next prime minister of the U.K. has eased some of the post-"Brexit" uncertainty. Looking ahead, the day is full of speeches from Fed officials, with Fed Governor Daniel Tarullo kicking things off ahead of the open.

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

• Schaeffer's Senior VP of Research Todd Salamone explains why this market could surprise investors.
• Short-term bulls blitzed Alibaba Group Holding Ltd (NYSE:BABA) ahead of Amazon.com, Inc.'s (NASDAQ:AMZN) big day.
• Why now may be a good time for GoPro Inc (NASDAQ:GPRO) option buyers to strike.
• Plus... The global stock rally continues, SAGE Therapeutics is set to take off, and Seagate Technology ups its pink-slip count.

5 Things You Need to Know Today
 

1. Asian markets surged after Japanese Prime Minister Shinzo Abe made "bold" statements, while European markets are higher ahead of tomorrow's Bank of England (BoE) meeting.
2. The Chicago Board Options Exchange (CBOE) saw 850,368 call contracts traded on Monday, compared to 490,810 put contracts. The resultant single-session equity put/call ratio rose to 0.58, while the 21-day moving average dropped to 0.69.
3. Shares of SAGE Therapeutics Inc (NASDAQ:SAGE) are set to pop 38% out of the gate, after the biotech's postpartum depression drug met the main goal of its mid-stage study. Today's projected price move runs counter to SAGE's longer-term trajectory, with the stock off 54% year-over-year, based on last night's close at $33.65.
4. Just weeks after announcing a round of job cuts, Seagate Technology PLC (NASDAQ:STX) said it will eliminate even more positions, totaling about 14% of its global workforce. The data storage specialist also followed in the footsteps of one sector peer by boosting its fiscal fourth-quarter revenue forecast. The shares of STX are up 14% in electronic trading.
5. Imperva Inc (NYSE:IMPV) was hit with a round of bearish brokerage notes, after the cybersecurity firm offered up lower-than-expected second-quarter guidance. IMPV is down 5% ahead of the bell, after rallying Monday amid some sale speculation.

Earnings and Economic Data

The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) highlights today's docket. In addition, St. Louis Fed President James Bullard, Minneapolis Fed President Neel Kashkari, and Cleveland Fed President Loretta Mester will speak. On the earnings front, Fastenal (FAST) will report. To see what else is on this week's schedule, click here.