Dow Jones Industrial Average Futures Signal New Highs After Jobs Data

Dow Jones Industrial Average (DJIA) futures are trading above fair value, pointing to another day of record highs -- and a potential ninth straight gain -- for the blue-chip index. Solid jobs data is helping boost stocks, with the Labor Department reporting 209,000 jobs were added in July, above the 178,000 that was expected. Plus, the unemployment rate fell to a 16-year low of 4.3%, while the June jobs report was upwardly revised. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also up ahead of what looks to be a positive session for the U.S. stock market.

Continue reading for more on today's market, including:

• The Valeant Pharmaceuticals "buy" signal that's never been wrong. 
• 2 options strategies for earnings season. 
• The product launch news that helped Fitbit rally. 
• Plus, AAOI stock set to gap 26% lower; the tech stock up 15% ahead of the bell; and Bill Ackman's latest target.

1. The Chicago Board Options Exchange (CBOE) saw 774,741 call contracts traded on Thursday, compared to 547,070 put contracts. The single-session equity put/call ratio fell to 0.71, and the 21-day moving average remained at 0.63.


2. Despite reporting second-quarter earnings and revenue that arrived above analysts' estimates, fiber optic specialist Applied Optoelectronics Inc (NASDAQ:AAOI) forecast current-quarter revenue of $107 million to $115 million -- far below expectations of $123 million. earning the stock a price-target cut at Piper Jaffray. After closing last night at $97.99, AAOI stock is bracing for a 26% drop out of the gate, but will remain well above its year-to-date breakeven mark of $23.44.


3. GoPro Inc (NASDAQ:GPRO) received a round of bullish brokerage notes -- including upgrades at Longbow Research and Raymond James -- after the camera maker reported a smaller-than-expected second-quarter loss of 9 cents per share on in-line revenue, and said it expects to launch its latest HERO iteration in time for the holiday season. GPRO stock is up 15.6% in electronic trading, and could be headed back into positive year-to-date territory.


4. Bill Ackman's Pershing Square Capital Management has set its sites on payroll services firm Automatic Data Processing (NASDAQ:ADP). The hedge fund plans to nominate five directors -- including Ackman -- to ADP's board, and is reportedly supporting the ousting of CEO Carlos Rodriguez. ADP stock is 2.4% higher ahead of the bell, up 8.8% in 2017, based on last night's close at $111.77.


5. Also out today is international trade data, as well as earnings from CBOE Holdings (CBOE), Toyota Motor (TM), and Trivago (TRVG). Next week, Disney and Nvidia earnings headline the action. 

Overseas Trading

It was a mixed session for equities throughout Asia, as investors turned cautious ahead of the jobs report release in the U.S. Japan’s Nikkei underperformed, falling 0.4%, even as automaker Suzuki rallied following an impressive earnings release. China’s Shanghai Composite also closed down 0.4%, though the index managed a seventh straight weekly win. The Hang Seng managed to notch a 0.1% win in Hong Kong, however, while South Korea’s Kospi added 0.4% to round out the region. 

European bourses are sporting broad gains at the midday point. Aside from the jobs data out of the U.S., investors across the pond are digesting the latest round of corporate earnings. While lending giant RBS impressed traders with its quarterly results, insurance stocks are mostly lower due to a disappointing report from Swiss Re. Still, the German DAX and London’s FTSE 100 were both up 0.2% at last glance, and France’s CAC 40 had added 0.3%.