Crude futures are trading higher this morning, after closing at a 10-month low on Wednesday
Dow Jones Industrial Average (DJIA) futures are trading above fair value, as
oil prices point to a rebound after closing at a 10-month low yesterday. And while August-dated crude is up 0.6% at $42.79 per barrel, futures on the
S&P 500 Index (SPX) are lower, putting the index at risk of a third consecutive loss. Financial shares could be in focus today, with Fed Governor Jerome Powell expected to testify in front of the Senate Banking Committee on easing Volcker Rule restrictions, while results of the Fed's stress tests are due. Additionally, Senate Republicans are expected to make public their version of a bill to replace Obamacare.
Continue reading for more on today's market, including:
- The oil stock to sell by Friday.
- The latest retail stock on Amazon's hit list.
- Options traders are betting on record highs for BlackBerry stock after earnings.
- Plus, an Apple supplier calls it quits; the airline stock set to soar; and Oracle signals record-high open.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 899,739 call contracts traded on Wednesday, compared to 527,501 put contracts. The single-session equity put/call ratio fell to 0.59, and the 21-day moving average remained at 0.63.
- U.K.-based Imagination Technologies is in talks with potential suitors after the company put itself up on the auction block. Its shares were decimated in early April on news Apple will begin making its own graphics chips for the iPhone and iPad.
- American Airlines Group Inc (NASDAQ:AAL) said it's received undisclosed notice that Qatar Airways plans to make a "significant investment" in the company, potentially taking a 10% stake. Despite a historically bearish month for airline stocks, AAL shares are up 5% in electronic trading.
- Oracle Corporation (NYSE:ORCL) reported fiscal fourth-quarter earnings that came in well above the consensus estimate, thanks to strong cloud growth. Analysts have been quick to issue bullish notes, too, sending ORCL stock up 12% ahead of the bell -- on track to open at an all-time peak.
- Weekly jobless claims rose by 3,000 last week to 241,000. Barnes & Noble (BKS), Bed Bath & Beyond (BBBY), and Sonic (SONC) will report earnings.
Overseas Trading
Stocks throughout Asia struggled to gain momentum, as investors mostly kept a close eye on oil prices, which continued to fall. After rising sharply early in the session, China's Shanghai Composite closed down 0.3%. Notable losses from large-cap financial stocks weighed on the index, as well as Hong Kong's Hang Seng, which settled 0.1% lower. Japan's Nikkei also closed down 0.1%. Traders there digested reports that airbag manufacturer Takata could file for bankruptcy next week. Meanwhile, South Korea's Kospi grabbed a 0.5% win.
The energy sector is also in focus in Europe. Oil giants such as Royal Dutch Shell and BP PLC are headlining the losers in the space, putting the FTSE 100 on pace for a third straight day of losses. At last check, the index was down 0.4%. France's CAC 40 is also moving lower, last seen down 0.3%. Germany's DAX, however, is fractionally higher at midday, thanks to outperformance from tech and healthcare stocks.