Dow Futures Rise Ahead of Expected Fed Rate Hike

Futures on the Dow Jones Industrial Average (DJI) are trading modestly above fair value, as pre-market upside for newly upgraded IBM (IBM) -- now a "buy" at UBS -- helps to offset a negative earnings reaction for Nike (NKE). All eyes will be on today's mid-afternoon Fed announcement and subsequent press conference from Fed Chair Jerome Powell, with the central bank expected to raise rates for the third time this year. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are signaling positive starts, too, with strength in tech stocks leading the NDX to its second straight win on Tuesday.

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

• Buy stocks before the midterms, according to data from Schaeffer's Senior Quantitative Analyst Rocky White.
• This former Dow stock just sent up a sell signal.
• Founder and CEO Bernie Schaeffer explains why this transports chart could be cause for concern.
• Plus, a big GoPro bull note; the drug stock up 30%; and KB Home shares rise after earnings.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 981,752 call contracts traded on Tuesday, compared to 509,042 put contracts. The single-session equity put/call ratio fell to 0.52, and the 21-day moving average remained at 0.59.
2. Oppenheimer upgraded GoPro Inc (NASDAQ:GPRO) to "outperform" from "perform," and set a $9 price target -- a 36% premium to last night's close at $6.62 -- with the brokerage firm waxing optimistic on the new Hero7 line of cameras. GPRO stock is up 5.6% ahead of the bell, set to extend a bounce off newfound support at its 200-day trendline.
3. Aldeyra Therapeutics Inc (NASDAQ:ALDX) reported positive mid-stage study data for its topical dry eye disease drug, and plans to move ahead with a late-stage trial. After settling last night at $9.90, ALDX is up 24% in electronic trading, and set to open at a three-year high north of $12.
4. KB Home (NYSE:KBH) last night unveiled better-than-expected fiscal third-quarter earnings of 87 cents per share, though revenue of $1.23 billion fell just short of the mark. Analyst reaction has been mixed, with the homebuilder receiving an upgrade to "outperform" at JMP Securities, while also getting hit with a pair of price-target cuts. KBH stock is set to open the session up more than 5%, and could pare a portion of its 20.9% year-to-date deficit.
5. The weekly crude inventories report, new home sales, and the MBA mortgage index are slated for release today. CarMax (KMX), Bed Bath & Beyond (BBBY), and Pier 1 Imports (PIR) will report earnings.

Energy Stocks Lift Asian Markets

Stocks in Asia enjoyed a positive session, even after President Donald Trump's tough talk on trade sent the Dow lower yesterday. Higher oil prices were again a positive catalyst, providing a spark to the energy sector in particular. The best session came from Hong Kong's Hang Seng, which finished up 1.2%, while China's Shanghai Composite added 0.9%. The latter index also enjoyed tailwinds after MSCI said it could significantly boost its exposure to large-cap Chinese stocks. Elsewhere, Japan's Nikkei added 0.4%, while markets in South Korea were closed for holiday.

For the most part, European equities are little changed, as investors await the U.S. Fed decision. Auto stocks are again in focus today, with the sector sharply lower at midday. Mercedes-Benz parent Daimler is one notable loser, after the company announced a new CEO. At last check, London's FTSE 100 is down 0.1%, the German DAX has shed 0.2%, and France's CAC 40 is flirting with a 0.3% gain.