Dow futures are under pressure following Disney earnings and Comey's firing
Dow Jones Industrial Average (DJIA) futures are trading below fair value this morning, with President Trump's surprise firing of FBI Director James Comey set to pressure stocks. Several members of Congress have since spoken out, questioning the timing of Trump's decision, and the political uncertainty has put pressure on the U.S. dollar. The Dow could also be hampered by Disney stock, with the shares pointed lower following disappointing quarterly revenue. The
Nasdaq Composite (COMP) is flirting with a positive open, however, as traders consider blowout earnings from
NVIDIA and Electronic Arts. Still, the firing of Comey could breath some life into a
muted VIX.
Continue reading for more on today's market, including:
- Schaeffer's Senior Quantitative Analyst Rocky White examines whether the historically low VIX is a contrarian indicator.
- How SNAP options traders are playing the company's first earnings report.
- Citron Research "loves the opportunity" to short this e-commerce stock.
- Plus, 2 stocks down more than 20% after earnings; the retail stock in the M&A crosshairs; and Alibaba stock set for new highs.
Futures on the Dow Jones Industrial Average (DJIA) are almost 35 points below fair value.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 940,967 call contracts traded on Tuesday, compared to 596,282 put contracts. The resultant single-session equity put/call ratio moved up to 0.63, while the 21-day moving average stayed at 0.68.
- While EA stock and NVDA get set to surge after earnings -- up 7.3% and 11.9%, respectively -- there also appear to be a number of big post-earnings losers today. For instance, Fossil stock is down 22.6% ahead of the open, following the company's disappointing first-quarter revenue. Shares of YELP are also getting whacked, on pace to open almost 27% lower, after the company's lower-than-expected first-quarter sales and weak outlook.
- Retail stock Abercrombie & Fitch is up 13% in electronic trading, thanks to reports the company is interested in receiving takeover bids from fellow retailers. ANF stock closed Tuesday at $12.67 compared to a year-ago price of $24.06, and touched a 16-year low of $10.50 roughly a month ago.
- Like many tech names, Alibaba stock has been soaring in 2017, with the shares of the e-commerce giant closing yesterday at $120 even -- matching their record high from November 2014. BABA stock should be able to take out that level today, with the equity edging higher ahead of the open following a price-target hike to $132 from $130 at Barclays.
- For economic data, the Treasury budget, import and export data, and weekly crude inventories report will be released. Crocs (CROX), Ctrip.com (CTRP), Dillard's (DDS), MannKind (MNKD), Mylan (MYL), and Sodastream (SODA) will all report earnings today.
Overseas Trading
It was a mixed finish in Asia today, as traders reacted to the election of Moon Jae-in as president of South Korea. Despite an initial advance, though, the Kospi settled down 1% amid earnings-related pressure from Samsung Electronics. China's Shanghai Composite also finished lower, down 0.9%, following mixed inflation data. Elsewhere, Japan's Nikkei tacked on 0.3%, while Hong Kong's Hang Seng added 0.5% after hitting a 21-month high in intraday action.
European stocks are mostly higher ahead of a midday speech from European Central Bank (ECB) President Mario Draghi. At last check, London's FTSE 100 is up 0.4% on a positive earnings reaction for homebuilder Barratt Developments, while the German DAX is flirting with a 0.1% lead. The French CAC 40, however, is down 0.05%, even after a stronger-than-expected reading on March industrial output.