DJIA futures are trading above fair value following this morning's nonfarm payrolls report
Dow Jones Industrial Average (DJIA) futures are trading comfortably above fair value, as a disappointing jobs number for September alleviates fears of an imminent rate hike from the Fed. Specifically, the U.S. economy added 156,000 jobs in September, according to the Labor Department's nonfarm payrolls report -- falling short of the expected 176,000 -- while the unemployment rate unexpectedly rose to 5% from 4.9%. Dow futures are holding early gains despite Cleveland Fed President Loretta Mester describing the report as "solid," and suggesting conditions still warrant a rate hike.
Fittingly, a number of other Fed speeches are also on tap today, with Fed Vice Chair Stanley Fischer and Fed Governor Lael Brainard among the bunch. Meanwhile, oil prices remain in focus after
yesterday's surge, with November-dated crude futures last seen flat at $50.44 per barrel.
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are 15.5 points above fair value.
5 Things You Need to Know Today
- How the pound's "flash crash" rattled European markets.
- The Chicago Board Options Exchange (CBOE) saw 793,870 call contracts traded on Thursday, compared to 565,689 put contracts. The resultant single-session equity put/call ratio rose to 0.71, while the 21-day moving average edged down to 0.65.
- Retailer Gap Inc (NYSE:GPS) is looking at a 6% jump when the market opens, after the company reported a lower-than-expected drop in same-store sales for September. As a result, Deutsche Bank upgraded the stock to "hold" from "sell" and raised its price target to $24 from $18. Jefferies also raised its price target to $32 from $30. This would be a much-needed boost for the shares, which have been sliding since their post-earnings peak in August.
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Honeywell International Inc. (NYSE:HON) is headed lower after cutting the high end of its 2016 profit forecast late Thursday, warning of weak demand for its aerospace equipment during the second half of the year. HON, which is due for a major leadership change in 2017, has dropped about 6% in electronic trading.
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Tyson Foods, Inc. (NYSE:TSN) got smacked with a downgrade all the way to "sell" from "buy" at Pivotal Research, with the brokerage firm citing concerns over a pending class action lawsuit against the poultry giant. TSN stock has slipped more than 4% ahead of the bell -- and while the shares have recovered quite a bit of ground from their June lows, today's early loss has TSN on track to extend a recent breach of its 50-day moving average, with the security sliding lower since creating a double-top near $77 in September.
Earnings and Economic Data
Kansas City Fed President Esther George is also scheduled to speak today. To see what's coming up on next week's schedule, click here.
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