Stock Futures Signal a Pullback After Fed Announcement
Dow Jones Industrial Average (DJIA) futures are pointed lower this morning, after the index yesterday posted its seventh straight record close and ninth consecutive win. The S&P 500 Index (SPX), which notched a record close of its own yesterday, is also signaling a lower start. Stock traders continue to digest the Fed's plans to shrink its balance sheet, as well as hints of an additional rate hike in December. Elsewhere, initial jobless claims unexpectedly fell last week, despite a spike in hurricane-related claims in Florida. And speaking of storms, Hurricane Maria is sweeping through the Dominican Republic as a Category 3 storm, after leaving Puerto Rico entirely without power.
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The Chicago Board Options Exchange (CBOE) saw 969,882 call contracts traded on Wednesday, compared to 594,347 put contracts. The single-session equity put/call ratio fell to 0.61, and the 21-day moving average remained at 0.61.Shares of BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) are up 9.1% in electronic trading, after the U.S. Food and Drug Administration (FDA) approved its marketing application for its flu drug, Rapivab, which is the first new flu anitviral for pediatric use in more than 10 years. The biotech stock has lost roughly 17% of its value in 2017, up to Wednesday's close of $5.27, and today could do battle with its 160-day moving average.Calgon Carbon Corporation (NYSE:CCC) stock is up 62.5% in pre-market trading -- set to open at a new two-year high -- after the company announced it will be acquired by Japan's Kuraray for $1.1 billion, or $21.50 a share, by the end of the year. The deal will merge the two companies together, making Calgon Carbon a subsidiary of Kuraray.
Another $1.1 billion deal is on the table today between Google parent Alphabet and Taiwanese smartphone maker HTC. Under the agreement, which is designed to bolster Alphabet's smartphone and emerging hardware business, Alphabet will acquire HTC's Pixel division. At last check, Alphabet Inc (NASDAQ:GOOGL) stock was fractionally higher ahead of the bell.The Philadelphia Fed index, the FHFA home price index, and the index of leading economic indicators will hit the Street today. The earnings calendar features results from Manchester United (MANU).
Overseas Trading
It was a mostly lower finish in Asia today, as markets reacted to the U.S. Fed's policy announcement. Additionally, the Bank of Japan (BoJ) kept its key interest rate unchanged as expected -- though newly appointed board member Goushi Kataoka dissented. Though Japan's Nikkei tacked on 0.2% on a cooling yen, its regional peers weren't so resilient. While Hong Kong's Hang Seng slipped 0.06%, both South Korea's Kospi and China's Shanghai Composite gave back 0.2%. After the close, the S&P Global Ratings cut China's sovereign credit rating to A+ from AA-, the first downgrade since 1999.
Most European markets are higher at midday, as financial shares rally in the wake of the U.S. Fed decision and rumors swirl over a possible merger between Commerzbank and BNP Paribas. Separately, Reuters reported the state-backed German lender could also merge with Italy's UniCredit. At last check, the French CAC 40 is up 0.6%, and the German DAX is flirting with a 0.3% lead. London's FTSE 100, however, is down 0.08% as mining stocks retreat.