U.S. Stocks Set to Open Higher After GDP, ADP Reports

The Dow Jones Industrial Average (DJIA) is signaling a positive open, after yesterday staging a notable intraday rebound in spite of geopolitical tensions with North Korea. The S&P 500 Index (SPX) is aiming for its fourth straight up session, as traders hone in on the latest estimate for second-quarter gross domestic product (GDP), which showed the economy grew at a pace of 3% -- higher than the initial reading of 2.7% growth. Investors are also focused on the August ADP employment report, which indicated a bigger-than-predicted surge in private-sector hiring, sparking optimism ahead of Friday's nonfarm payrolls report. Meanwhile, markets continue to monitor Tropical Storm Harvey's damage along the oil-rich Gulf Coast.  

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

• The best day to buy stocks next week, according to Schaeffer's Senior Quantitative Analyst Rocky White.
• Options traders could score a post-Harvey deal on Lowe's stock.
• 2 oil ETFs headed for a historical rough patch.
• Plus, the drug stock staring at an 80% drop; The Medicine Company's FDA nod; and Chico's nosedives after earnings.

1. The Chicago Board Options Exchange (CBOE) saw 673,057 call contracts traded on Tuesday, compared to 411,515 put contracts. The single-session equity put/call ratio jumped to 0.61, and the 21-day moving average fell to 0.70.
2. Shares of Otonomy Inc (NASDAQ:OTIC) are down 79.6% before the bell, and headed for a record low, after the company's ear disease drug Otividex failed in a late-stage study. Following the results, the U.S. drugmaker said it would suspend development of the drug, which was meant to treat Meniere's disease.
3. The Medicines Company (NASDAQ:MDCO) stock is up 6.5% in pre-market trading, after the Food and Drug Administration (FDA) approved Vabomere, the company's drug designed to treat adult patients with complicated urinary tract infections. The pharmaceutical company expects the drug to be available in the fourth quarter of 2017, and MDCO stock is set to topple resistance in the $40 region.
4. Lower-than-expected second-quarter earnings and lackluster sales have Chico's FAS, Inc. (NYSE:CHS) down 10.6% in electronic trading. The apparel and accessories stock has already dropped 45.6% year-to-date, and could touch an eight-year low today.
5. The regularly scheduled update on domestic crude inventories will be unveiled today. For earnings, Analog Devices (ADI), Bob Evans (BOBE), Box (BOX), Ctrip.com (CTRP), Five Below (FIVE), Shoe Carnival (SCVL), and Workday (WDAY) will step into the spotlight. 

Overseas Trading

It was a bounce back session for stocks in Asia, with investors turning their attention back to riskier assets. Hong Kong’s Hang Seng led the charge by adding 1.2%, even though China’s Shanghai Composite failed to break even, ending the day down 0.1%. In Japan, tech stocks outperformed -- save struggling Toshiba -- and retail figures for July nearly doubled estimates. As such, the Nikkei closed up 0.7%. Finally, South Korea’s Kospi added 0.3%.

European benchmarks are also sporting broad gains. Bank and media stocks are some of the best performers at the halfway point, while the energy sector remains in focus amid the fallout surrounding Hurricane Harvey in the U.S. Traders also digested the latest consumer confidence data for the eurozone, which topped forecasts for August. At last check, Germany’s DAX was up 0.6%, France’s CAC 40 was up 0.5%, and the FTSE 100 was sporting a 0.4% lead in London.