Dow futures are trading below fair value, with Tillerson's Russia visit in focus
Dow Jones Industrial Average (DJIA) futures are signaling another down day for stocks, as geopolitical risks continue to dominate the conversation ahead of the long Easter weekend. Most notably, U.S. Secretary of State
Rex Tillerson is in Russia today to discuss the situation in Syria. Oil prices are gaining ahead of today's report on domestic crude inventories, with May-dated crude futures up 0.3% at $53.58 per barrel. On the economic front, import prices declined 0.2% in March, matching expectations. Still, if the Dow and its index peers struggle once again, it could be another big day for the
CBOE Volatility Index (VIX).
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are 11 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 626,999 call contracts traded on Tuesday, compared to 497,752 put contracts. The resultant single-session equity put/call ratio jumped to 0.79, while the 21-day moving average edged up to 0.65.
- Stun-gun stock Axon Enterprise Inc (NASDAQ:AAXN) is set to open with a 2% gain, but it's not clear why. The shares recently took back their 20-day moving average, and could now take aim at their year-to-date breakeven level near $24.
- Cloud concern Twilio Inc (NYSE:TWLO) is also up big in pre-market trading, set to open 2.2% higher, which would put the shares on pace for a fourth straight daily win. In fact, TWLO stock is up 9% over the past three sessions.
- Keeping with this trend of pre-market winners, social media stock Momo Inc (ADR) (NASDAQ:MOMO) is eyeing another big day, up 2% in electronic trading. MOMO stock hit a record high of $38.99 just yesterday, before closing at $37.37 -- up 103% in 2017.
- Reporting earnings will be Fastenal (FAST), Infosys (INFY), and Pier 1 Imports (PIR).
Overseas Trading
Markets in Asia ended mixed, as investors kept one eye trained on the brewing conflict between North Korea and the U.S., following the former's ballistic missile tests and the latter's deployment of an aircraft carrier group into the region. The yen spiked as traders sought so-called "safe havens," in the process pressuring Japan's Nikkei down 1%. These headwinds were exacerbated by a weaker-than-forecast month-on-month rise in February core machinery orders. China's Shanghai Composite also ended in the red, giving back 0.5% after consumer prices rose slightly less than expected in March. Conversely, Hong Kong's Hang Seng and South Korea's Kospi finished on the positive side of the ledger, jumping 0.9% and 0.2%, respectively.
European stocks are trading mixed at the moment, amid the geopolitical drama unfolding on the Korean Peninsula and in Syria and a rally in auto stocks. London's FTSE 100 is down 0.1%, dragged by a post-earnings sell-off in shares of grocer Tesco. However, Germany's DAX has advanced 0.1% -- with Chancellor Angela Merkel slated to hold a cabinet meeting to discuss Brexit -- and the French CAC 40 is 0.3% higher.