The Dow and its index peers are on pace for weekly wins
Dow Jones Industrial Average (DJIA) futures are trading above fair value this morning, as stocks look to build off yesterday's huge session. Traders continue to consider promising comments on
tax reform from Treasury Secretary Steve Mnuchin, while also digesting the latest from the earnings front. Specifically, Dow components General Electric Company (NYSE:GE) and Visa Inc (NYSE:V) are both set to gain thanks to well-received earnings. Meanwhile, many are bracing for the first round of voting in the closely watched
French election this weekend. Still, the Dow,
S&P 500 Index (SPX), and
Nasdaq Composite (COMP) all look set for a weekly win.
Continue reading for more on today's market, including:
- Analyst: This FANG stock will rally more than 25%.
- Why this financial stock lost 50% of its value.
- VIX options traders haven't done this since the Brexit.
- Plus, GE tops expectations; Visa eyes record highs; and Skechers looks to reward options bulls.
Futures on the Dow Jones Industrial Average (DJIA) are 30 points above fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 885,010 call contracts traded on Thursday, compared to 600,274 put contracts. The resultant single-session equity put/call ratio dipped to 0.68, while the 21-day moving average moved down to 0.66.
- General Electric beat on the top and bottom lines, and the shares are now up 1.6% ahead of the open. The move would represent GE stock's highest open in two months, and also the first time the shares have gained in the session after earnings in six quarters.
- Visa stock, meanwhile, is up 2.5% ahead of the opening bell, after the company topped analysts' fiscal second-quarter profit and revenue expectations. If these gains come to fruition, V shares will be trading at fresh record highs. After ending 2016 near $78, Visa closed yesterday at $91.15.
- Elsewhere, bullish options traders are cheering an earnings beat from Skechers, as the stock is now set to open 3% higher. What's more, B. Riley upgraded SKX stock to "buy," and set a $32 price target, representing territory not seen since July.
- The Markit flash composite purchasing managers index (PMI) and existing home sales come out today, while Honeywell (HON), Rockwell Collins (COL), Schlumberger (SLB), and Stanley Black & Decker (SWK) round out the earnings slate. Earnings season rolls on next week, with several big-name stocks on the docket.
Overseas Trading
Asian markets ended mostly higher, shaking off the suspected terrorist shooting in Paris ahead of Sunday's French presidential election. Japan's Nikkei broke out to a 1% gain, following a rise in the Nikkei-Markit manufacturing purchasing managers index (PMI), which was driven higher by increased export orders. South Korea's Kospi had a strong close to the week, too, adding 0.7% -- even with rival North Korea preparing to celebrate its military's 85th anniversary next week. Meanwhile, China's Shanghai Composite settled just a hair higher, up 0.03%, but Hong Kong's Hang Seng sat out the day's rally, dipping 0.06%.
Stocks in Europe are mixed, despite a strong round of preliminary PMI readings for April, with investors on high alert after the apparent terrorist attack. Pre-election jitters are weighing in France, where the CAC 40 is down 0.2%, amid speculation far-right candidate (and Frexit supporter) Marine Le Pen could get a boost from the shooting. London's FTSE 100 is dancing around breakeven and on track for its worst week in five months, as traders digest disappointing retail sales data. The German DAX, meanwhile, is up a solid 0.3%.