The Dow is making a fast track toward 26K
Futures on the Dow Jones Industrial Average (DJI) are well above fair value, putting the blue-chip index within reach of the 26,000 level -- just seven trading days after it toppled 25,000. Boosting the Dow is a positive earnings reaction for UnitedHealth (UNH) -- which is helping to overshadow a pre-market slump for General Electric (GE), with the stock down 3% on news the company will take a $6.2 billion fourth-quarter charge from its insurance division. Nevertheless, a post-earnings pop for bank stock Citigroup (C) has S&P 500 Index (SPX) futures higher in what looks to be another day of record highs for U.S. stocks.
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5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.43 million call contracts traded on Friday -- the most since Nov. 29 -- compared to 709,975 put contracts. The single-session equity put/call ratio stayed at 0.50, while the 21-day moving average remained at 0.56.
- Shares of BlackBerry Ltd (NYSE:BB) are up 4.6% before the open, setting them up for a push to multi-year highs, after the company yesterday revealed cybersecurity software for self-driving cars, called Jarvis. As of last week's close at $13.65, BB stock has already added 22% year-to-date, pressuring short sellers in the process.
- Drug giant Merck & Co., Inc. (NYSE:MRK) is making a pre-market push, as well, ready to open up 4.7%. The company's Keytruda drug met its primary goals in a late-stage study for lung cancer in combination with other therapies. However, the equity could run into a wall in the form of its 200-day moving average, and has struggled to keep up with fellow blue chip Johnson & Johnson (JNJ).
- After last week announcing a higher minimum wage for workers and expanded benefits, Wal-Mart Stores Inc (NYSE:WMT) is reportedly cutting about 1,000 corporate jobs by the end of the month, according to the Wall Street Journal. The Dow component hit a record high last week of $102.35.
- The Empire State manufacturing survey will kick off the abbreviated week. Comerica (CMA) and First Republic Bank (FRC) will kick off earnings releases.
Cooling Yen Lifts Tokyo Stocks
It was a mostly higher finish for Asian equities. After ending its record-breaking daily win streak on Monday, the Hang Seng bounced back with a 1.8% gain and record close, while strength from financial stocks had the Shanghai Composite 0.8% higher. Japan's Nikkei also had a strong showing, ending with a 1% gain, as the yen weakened. Meanwhile, South Korea's Kospi jumped 0.7%.
So far in Europe, trading has been mixed. Auto stocks are seeing strong price action, as is components supplier Continental AG. Shares of apparel company Huge Boss AG are also on the rise after the company’s well-received sales update. While London's FTSE 100 has dropped 0.2%, Germany's DAX and France's CAC 40 are sporting respective gains of 1% and 0.3%.