DJIA futures are above fair value, as stocks react to the January nonfarm payrolls report
Dow Jones Industrial Average (DJIA) futures are on the rise this morning, as stocks react to this morning's job report. Specifically, nonfarm payrolls for January increased by 227,000, blowing past estimates of 175,000 -- though unemployment edged up to 4.8% and hourly wages rose less than expected. Meanwhile,
tech earnings continue to roll in, with Amazon.com, Inc. (NASDAQ:AMZN) last night reporting disappointing revenue, while Dow stock Visa Inc (NYSE:V) is rising fast after earnings. Bank stocks may be in focus as well, amid reports President Donald Trump will begin to roll back regulations on the financial industry, including changes to the Dodd-Frank law.
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are 57 points above fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 871,496 call contracts traded on Thursday, compared to 556,167 put contracts. The resultant single-session equity put/call ratio dipped to 0.64, while the 21-day moving average remained at 0.67.
- AMZN is down more than 4% in pre-market trading, after fourth-quarter revenue fell short of the Street's expectations, with the company's cloud business particularly disappointing. While the pending move puts a dent in bullish traders' expectations, the stock would still sport a roughly 50% year-over-year lead if the losses come to fruition.
- After initially falling after last night's earnings release, shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) are now edging higher ahead of the open. While the company reported weaker-than-expected earnings, sales rose for the first time in five quarters. While trader sentiment remains mostly bearish, CMG has added almost 20% since its low of $352.96 on Nov. 1.
- GoPro Inc (NASDAQ:GPRO) is set to sell off once again after earnings, with the shares tanking 13.5% in pre-market trading. The company's fourth-quarter sales greatly disappointed, as did its current-quarter outlook.
- Also on today's agenda is factory orders and the ISM services index. Separately, Chicago Fed President Charles Evans is due to speak. Closing out the earnings lineup will be Clorox (CLX), Hershey (HSY), Honda (HMC), LyondellBasell (LYB), Phillips 66 (PSX), and Weyerhaeuser (WY).
Overseas Trading
Asian stocks finished the day mostly lower, as China's Shanghai Composite reopened following a week-long Lunar New Year holiday. The index dropped 0.6% by the end of the session, as the People's Bank of China (PBOC) surprised investors by raising short-term interest rates by 10 basis points. Meanwhile, the county's Caixin manufacturing purchasing managers' index (PMI) for January missed expectations, sliding to 51.0 after hitting a nearly four-year high a month earlier. Hong Kong's Hang Seng also lagged, shedding 0.2%. Japan's Nikkei ended nearly unchanged, after the Bank of Japan modestly increased its planned bond purchases to contain climbing government debt yields. And South Korea's Kospi outperformed its regional peers, adding 0.1%.
Markets in Europe are higher at midday, as traders await this morning's key jobs report from the U.S. Basic resources are lagging following the surprise PBOC rate hike, but banking stocks got a boost after reports President Trump is planning to roll back the Dodd-Frank financial regulations of 2010. At last check, London's FTSE 100 is up 0.4%, Germany's DAX is 0.2% higher, and France's CAC 40 has tacked on 0.9%.
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