DJIA futures are flat, as traders digest today's round of economic data
Dow Jones Industrial Average (DJIA) futures are hovering near breakeven,
after yesterday's triple-digit loss diminished hopes of the Dow reaching the key 20,000 mark in 2016. Traders are looking to today's round of economic data, with weekly jobless claims dropping by more than expected to 265,000, and the U.S. trade deficit increasing by 5.5% in November. Later, energy stocks could react to the holiday-delayed crude inventories report.
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are about 2 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 536,793 call contracts traded on Wednesday, compared to 329,357 put contracts. The resultant single-session equity put/call ratio fell to 0.61, while the 21-day moving average rose to 0.61.
- Cempra Inc (NASDAQ:CEMP) is down 45.9% ahead of the bell -- to the cheers of many short sellers -- after the U.S. Food and Drug Administration (FDA) rejected the company's New Drug Application (NDA) for its pneumonia treatment, solithromycin. The FDA cited the need for additional data regarding safety, as well as issues with the manufacturing facility.
- Kate Spade & Co (NYSE:KATE) is trading 1.4% lower before the open, a day after surging on reports the handbag company is exploring a sale. KATE shares jumped more than 23% yesterday, boosting rival Coach Inc (NYSE:COH) in the process.
- Sanofi SA (ADR) (NYSE:SNY) is set to pop 1.6% at the open, with the shares getting another M&A-inspired lift, on news that the company's asset swap with German biotech Boehringer Ingelheim Pharmaceuticals will involve Boehringer divesting five types of animal health products. The original deal -- which saw SNY acquiring Boehringer's consumer health unit while giving up its own animal care subsidiary -- was blocked by the U.S. Federal Trade Commission (FTC), citing competition concerns.
- Today's earnings and economic calendar is relatively bare.
Overseas Trading
It was a mixed finish for Asian markets, with Toshiba shares once again taking it on the chin. Specifically, the electronics stock tumbled 17% after a pair of credit downgrades, dragging Japan's Nikkei to a 1.3% loss, while a stronger yen weighed on exporters. Also lower was China's Shanghai Composite, which shed 0.2%. On the flip side, South Korea's Kospi edged 0.1% higher following the best monthly gain in industrial output in over six years -- and despite a downward revision to the country's 2017 gross domestic product (GDP) forecast. Hong Kong's Hang Seng was modestly higher, as well, tacking on 0.2%.
Automakers and financial stocks are struggling in Europe, putting pressure on the major indexes. France's CAC 40 and the German DAX are down 0.1% and 0.2%, respectively. Meanwhile, London's FTSE 100 is sitting just a hair above breakeven, but remains on track for another record closing high. On the data front, U.K. housing prices rose more quickly than expected in December -- though a slowdown is anticipated in 2017 -- while business sentiment hit an 18-month high.
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