3M, Caterpillar Earnings Have Stock Futures Soaring – Schaeffers Research (press release)

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Strong earnings are once again serving as a bullish catalyst for the U.S. stock market, with futures on the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) trading above fair value after big beats from 3M (MMM) and Caterpillar (CAT). The Nasdaq-100 Index (NDX) is also signaling a positive start, as Amazon (AMZN) gets a pre-market lift from a price-target hike to $1,800 at D.A. Davidson, the highest on Wall Street. Against this backdrop — and after the European Central Bank (ECB) said it will leave interest rates unchanged for “an extended period” — the major market indexes are targeting new record highs out of the gate, though the U.S. dollar appears set for another loss.

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

  • Stocks that could make monster moves soon, if history repeats.
  • This airline stock’s sell-off was really no surprise.
  • 3 penny stocks that made huge moves.
  • Plus, FCX stock pops on a profit beat; Revlimid sales boost Celgene earnings; and a fresh “buy” rating for Foot Locker.

5 Things You Need to Know Today

  1. The Chicago Board Options Exchange (CBOE) saw 1.41 million call contracts traded on Wednesday, compared to 754,059 put contracts. The single-session equity put/call ratio rose to 0.53, while the 21-day moving average stayed at 0.55.
  2. Stronger commodity prices helped Freeport-McMoRan Inc (NYSE:FCX) report stronger-than-forecast adjusted fourth-quarter profit of 51 cents per share. FCX stock is up 4.5% in electronic trading, with the mining shares set to close in on their Jan. 22 two-year high of $20.18.
  3. Celgene Corporation (NASDAQ:CELG) said strong sales for its multiple myeloma drug, Revlimid, boosted its adjusted fourth-quarter profit to $2.00 per share, edging out the consensus estimate. CELG stock — which rose earlier this week on news of the drugmaker’s takeover of Juno Pharmaceuticals (JUNO) — is up 2.2% ahead of the bell.
  4. Pivotal Research initiated coverage on Foot Locker, Inc. (NYSE:FL) with a “buy” rating, with the brokerage firm waxing optimistic on the athletic apparel retailer’s valuation and product pipeline. Wedbush also raised its FL price target to $59 from $52, a 12.9% premium to last night’s close at $52.25.
  5. International trade data, weekly jobless claims, and new home sales are slated for release. Intel (INTC), American Airlines (AAL), Biogen (BIIB), Fiat Chrysler (FCAU), Intuitive Surgical (ISRG), JetBlue Airways (JBLU), Raytheon (RTN), Southwest Airlines (LUV), Starbucks (SBUX), and Western Digital (WDC) all scheduled to report earnings.

Exporters Weighed on Tokyo Stocks

Asian stock markets pulled back today. Investors kept their eyes on a sinking U.S. dollar, which put pressure on several prominent exporters throughout the region. This was especially true in Japan, where the Nikkei fell 1.1% amid another day of sharp losses from tech giant Sony. Even Hong Kong’s Hang Seng suffered a rare loss — just its second in 2018 — falling 0.9%. The Chinese Shanghai Composite moved lower, too, ending with a 0.3%. South Korea’s Kospi managed to outperform, however, tacking on 1%.

In Europe, stocks are testing positive territory after the latest policy decision from the ECB. Plus, ECB President Mario Draghi is set to speak before reporters after the central bank kept its existing monetary policy plan in place. For economic data, a reading on German business sentiment came in higher than expected for December — though the German DAX was up just 0.1% at last check. Meanwhile, the FTSE 100 was also up a modest 0.1%, as the French CAC 40 was last seen sporting a 0.4% lead.

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