Stock Futures Rebound as Fed Meeting Begins

The stock market appears to be stabilizing following yesterday's sharp sell-off, with Dow Jones Industrial Average (DJI) futures trading above fair value this morning. Today's focus will be on the Fed, which kicks off its final policy meeting of 2018. Fed funds futures are pricing in a 71.5% chance the central bank will raise interest rates tomorrow, per CME Group, though in a tweet this morning, President Donald Trump said a rate hike would be "another mistake."

Traders will also be keeping a close eye on oil prices, which settled below the $50 per-barrel mark yesterday. This downside looks set to continue today, with January-dated crude futures last seen off 2.4% at $48.70 per barrel.

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

• 2 concerns about stock market sentiment, courtesy of Schaeffer's Senior V.P. of Research Todd Salamone.
• Analyst targets major upside for this penny stock.
• Apple call options gained traction after a bullish Barron's note.
• Plus, strong cloud growth for Oracle; CBS deals Moonves a $120 million blow; and Boeing's big announcement.

5 Things You Need to Know Today

1. The Chicago Board Options Exchange (CBOE) saw 675,923 call contracts traded on Monday, compared to 658,420 put contracts. The single-session equity put/call ratio jumped to 0.97, and the 21-day moving average edged up to 0.72.
2. Oracle Corporation (NYSE:ORCL) reported adjusted third-quarter profit of 80 cents per share on $9.56 billion in revenue -- more than analysts were expecting. The tech firm also forecast current-quarter earnings above estimates on strong growth in its cloud division. After closing last night at $45.73, ORCL stock is up 5.4% in premarket trading.
3. CBS Corporation (NYSE:CBS) said it will not pay Les Moonves a $120 million severance package, after an investigation into sexual misconduct allegations against the former CEO found "grounds to terminate for cause." CBS stock hit a nearly two-year low of $46.57 yesterday before closing at $46.82, and is up 1.7% ahead of the bell.
4. Boeing Co (NYSE:BA) raised its quarterly dividend by 20% to $2.055 per share, and hiked its buyback plan by $2 billion to $20 billion. BA stock settled at $316.13 on Monday -- notching its third straight loss -- but is 2.7% higher in electronic trading.

5. On the economic data front, housing starts rose 3.2% in November to a seasonally adjusted annual rate of 1.26 million, though this is 3.6% lower year-over-year. FedEx (FDX), Micron Technology (MU), Darden Restaurants (DRI), and Navistar (NAV) will report earnings.

Weak Energy Prices Weigh on Global Stocks

Stocks in Asia settled lower today, tracking Wall Street's broadly bearish finish on Monday. Traders in China were relatively unmoved by a speech from President Xi Jinping to mark the 40th anniversary of the country's economic reforms, as the leader called for Beijing to "stay the course" on policy -- and added, in an apparent reference to the Trump administration's heavy-handed approach on trade, that "no one is in a position to dictate" what China should do. By the close, Japan's Nikkei dropped 1.8%, Hong Kong's Hang Seng lost 1.1%, China's Shanghai Composite lost 0.8%, and South Korea's Kospi fell 0.4%.

European markets are mostly lower at midday, with energy names among the top decliners as crude futures take a hit on oversupply woes. Investors also eyed a weaker-than-forecast reading from Germany's Ifo business sentiment index reading, which slipped on a month-over-month basis in December. At last check, London's FTSE 100 is off 0.4%, the French CAC 40 is down 0.1%, and the German DAX has ticked up 0.3%.