Dow futures are trading near fair value, while the Nasdaq is eyeing fresh record highs
Dow Jones Industrial Average (DJIA) futures are trading near fair value this morning, as stocks try to close out a big week on a positive note. Traders this morning are weighing comments from President Donald Trump, who suggested there was a chance for a "major, major conflict" with North Korea. For economic data, first-quarter gross domestic product (GDP) grew by just 0.7% -- the slowest rate in three years, falling short of expectations.
Oil stocks Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) are also in focus, with shares of the Dow giants moving higher after earnings. Meanwhile, fellow blue chip Intel Corporation (NASDAQ:INTC) is struggling after earnings, though tech peers Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc (NASDAQ:GOOGL) are signaling major post-earnings rallies. As such, the
Nasdaq Composite (COMP) should flirt with fresh record highs at the open, while the Dow and
S&P 500 Index (SPX) are also set to close the week with impressive gains.
Continue reading for more on today's market, including:
Futures on the Dow Jones Industrial Average (DJIA) are trading just 6 points above fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 856,201 call contracts traded on Thursday, compared to 627,016 put contracts. The resultant single-session equity put/call ratio rose to 0.72, while the 21-day moving average edged up to 0.66.
- Automaker General Motors Company (NYSE:GM) is among the early post-earnings winner, after the company topped first-quarter earnings and revenue estimates, thanks to strong truck sales. GM stock is on pace to open 1.6% higher, which would put it above the formerly supportive $35 area, as well as positive year-to-date territory.
- GoPro Inc (NASDAQ:GPRO) is also edging higher after the company's smaller-than-expected first-quarter loss. The firm also forecast better-than-expected revenue growth for the current quarter. If GPRO stock can build off these gains, it would go against the bearish expectations seen across Wall Street.
- Meanwhile, Starbucks stock is on pace to open almost 4% lower, as the coffee giant's fiscal second-quarter revenue fell short of expectations. Despite this, BMO raised its price target to $67 from $62, representing all-time-high territory. Looking back, the bullish bias had been building on SBUX stock ahead of earnings.
- The employment cost index, the Chicago purchasing managers index (PMI), and the latest consumer sentiment stats all come out today. Also, for earnings, Colgate-Palmolive (CL), Goodyear Tire (GT), Spirit Airlines (SAVE), and UBS (UBS) report today. Next week, Facebook earnings and nonfarm payrolls highlight the calendar.
Overseas Trading
Stocks in Asia ended the week on an off note, negatively impacted by President Trump's warning of a potential conflict with North Korea, as well as his threat to end a "horrible" trade deal with South Korea. Trump is also demanding $1 billion from Seoul to pay for the THAAD missile defense system. As a result, South Korea's Kospi sank 0.2%, with auto and retail stocks among the worst performers. Meanwhile, Japan's Nikkei finished 0.3% lower, after a disappointing rise in the March consumer price index (CPI) and a steeper-than-expected drop in industrial output. Following suit, Hong Kong's Hang Seng dipped 0.3%, but China's Shanghai Composite defied the regional headwinds, adding about 0.1%.
European markets are mixed, as traders weigh heightening geopolitical tensions against a mostly upbeat round of bank earnings. However, one financial stock that's sliding after earnings is London-based Barclays, helping to pressure the FTSE 100 0.4% lower -- exacerbated by a slump in first-quarter GDP growth in the U.K. Germany's DAX is 0.03% below breakeven, with the latest eurozone inflation data pushing the euro higher. Meanwhile, France's CAC 40 is up 0.2%, as the country's inflation rose in line with estimates.