U.S. stocks are set to follow their global counterparts higher
Futures on the Dow Jones Industrial Average (DJI) are signaling a higher open, with bank stocks catching a lift after most big lenders -- including Wells Fargo (WFC) and Citigroup (C) -- passed the second round of the Fed's annual stress tests. Traders are also cheering solid overnight gains in Asia, as well as a strong start to the session in Europe.
Continue reading for more on today's market, including:
- Red-hot XLU flashes a rare bullish signal.
- 4 stocks crushed by Amazon.
- 50 stocks to watch for the third quarter.
- Plus, Nike gets showered with post-earnings price-target hikes; Walgreens stock gets slammed by analysts; and KB Home stock soars on earnings beat.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 784,221 call contracts traded on Thursday, compared to 506,913 put contracts -- the lowest daily call and put volume recorded since May 23. The single-session equity put/call ratio fell to 0.65, while the 21-day moving average rose to 0.57.
- Following the company's fiscal fourth-quarter earnings and revenue beat, as well as its $15 billion buyback program announcement, Nike Inc (NYSE:NKE) has landed no fewer than 12 price-target hikes. NKE is up more than 10% in electronic trading, and on track to open at new record highs near $80 per share.
- Newly christened Dow component Walgreens Boots Alliance Inc (NASDAQ:WBA) has been slammed with two downgrades and four price-target cuts just one day Amazon announced its PillPack acquisition. Notably, Jefferies downgraded WBA to "hold" from "buy" and slashed its price target to $65, while Baird cut the stock to "neutral" from "outperform" and dropped its price target to $64. WBA has shed 23.7% over the past 52 weeks, but is fractionally higher in pre-market action after yesterday's big bear gap.
- KB Home (NYSE:KBH) is up 9.4% in pre-market trading after the builder reported a fiscal second-quarter earnings and revenue beat last night. Credit Suisse slashed its price target on KBH to $29 from $32, while Wedbush hiked its price target to $33 from $29. It's been a rough year for KBH shares, as the stock has shed 34% since its early January peak -- but today's pre-market rally has the equity on track to challenge recent resistance at its 200-day moving average.
- Core inflation data, personal income and spending stats, the Chicago purchasing managers index (PMI), the University of Michigan consumer sentiment index, and the Baker-Hughes weekly rig count will hit today. Constellation Brands (STZ) will report earnings. Looking ahead, jobs data will headline the holiday-shortened week.
China's Shanghai Composite Snaps Losing Streak
Asian stocks ended the second quarter on a strong note. Chinese stocks especially saw strong price action after the country cut back on restrictions for foreign investments, helping the Shanghai Composite jump 2.2% to snap its four-day losing streak. Hong Kong's Hang Seng followed suit, adding 1.6%. In Japan, the Nikkei settled up 0.2% following the latest round of economic data. The unemployment rate for the country fell to the lowest levels in a quarter century, while industrial output for May fell less than expected. Rounding out the region, South Korea’s Kospi picked up 0.5%.
European stock markets are tracking their Asian counterparts, after European Union leaders struck a deal on migration. London's FTSE 100 is up 0.8% today, putting it on pace for its best quarter in almost eight years. Traders there are reacting to an upwardly revised report on first-quarter U.K. economic growth, which has the pound pushing higher. Elsewhere, France’s CAC 40 is up 1.3% at last check, while Germany’s DAX is 1.4% higher.