Dow Futures Signal Rebound; Central Banks in Focus
Dow Jones Industrial Average (DJIA) futures are higher this morning, as the index appears ready to bounce back from its worst session in over a month. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also modestly higher, as traders eye earnings from Ford Motor (F) and Twitter (TWTR), to name just two, and await reports from techtitans Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN), taking center stage after the close.
Elsewhere, traders are digesting a smaller-than-expected rise in weekly jobless claims, the European Central Bank's (ECB) decision to cut bond purchases, and fresh reports that John Taylor and Fed Governor Jerome Powell are the frontrunners for President Trump's choice for Fed Chair.
Continue reading for more on today's market, including:
5 Things You Need to Know TodayThe Chicago Board Options Exchange (CBOE) saw 930,982 call contracts traded on Wednesday, compared to 657,223 put contracts. The single-session equity put/call ratio jumped to 0.71, while the 21-day moving average stayed the same at 0.65. Automatic Data Processing (NASDAQ:ADP) stock is up 0.6% before the bell, after proxy firm ISS recommended activist investor Bill Ackman's for a seat on the ADP board. The vote on the board will take place on Nov. 7. ADP stock also received a price-target hike from Barclays today, to $115 from $105. ADP has added 33% year-over-year, despite bearish options activity lately.Amgen, Inc. (NASDAQ:AMGN) is down 4.5% in electronic trading, after reporting a decline in sales of new drug and key products. The news overshadowed a per-share earnings beat and upwardly revised full-year guidance, and prompted three price-target cuts, including to $184 from $187 at Leerink. AMGN has historically been one of the best stocks to own in the fourth quarter, but so far is down 4.8% quarter-to-date.Fellow drugmaker TESARO Inc (NASDAQ:TSRO) scored a big win this morning, after the Food and Drug Administration (FDA) approved its chemotherapy drug, Varubi, for intravenous application. The news could bring a much-needed lift for the TSRO stock, which has shed 18% year-to-date. The shares are pointed 1% higher in pre-market trading.Pending home sales will be released today, and traders will also hear from Minneapolis Fed President Neel Kashkari during regular trading hours. Intel (INTC), American Airlines (AAL), Bristol-Myers (BMY), CME Group (CME), Expedia (EXPE), First Solar (FSLR), Gilead Sciences (GILD), Spirit Airlines (SAVE), Vantiv (VNTV), Western Digital (WDC), and Xerox (XRX) will will step up to the earnings plate today.
Overseas Trading
Markets were mixed in Asia as investors took a wait-and-see approach ahead of the ECB policy decision. In China, the Shanghai Composite rose 0.3%, while Hong Kong's Hang Seng went the opposite direction, falling 0.4%. After its first loss in 17 sessions, the Nikkei bounced back with a 0.2%, and South Korea's Kospi fell 0.5%.
In Europe stocks are moving higher thanks to the ECB's decision to lower but extend its bond-buying initiative. Otherwise, earnings remain the top focus, with technology stocks falling after disappointing results from Nokia. At last check, the CAC 40 was up 0.7%, while the German DAX and London's FTSE 100 were sporting leads of 0.5%.