Tuesday, November 22, 2016

Stock Futures Set Up for Record Open as Crude Oil Levels Off

stock market

Stock futures were higher Tuesday morning, setting up equities for further record gains, as crude oil slipped after a massive surge. 

S&P 500 futures were up 0.22%, Dow Jones Industrial Average futures added 0.26%, and Nasdaq futures rose 0.4%. 

Wall Street scored a trifecta of record closes on Monday as a crude oil rally gave stocks an across-the-board boost. The S&P 500, Dow, and Nasdaq each scored their own record close, the first time all have done so on the same day since mid-August. The three had previously closed at records simultaneously back in 1999.

Crude oil prices surged on Monday after Russian President Vladimir Putin suggested a willingness to agree to a production freeze deal with Organization of Petroleum Exporting Countries. OPEC officials are currently meeting in Vienna to discuss terms of a deal. Members will meet again in Vienna on Nov. 30 to vote on the deal. A Nigerian delegate told The Wall Street Journal that members should be on board with the terms "by the end of the day."

Oil prices have fluctuated on renewed hopes for an OPEC deal that would rein in record production from the world's largest oil producers. OPEC aims to limit production to 32.5 million to 33 million barrels a day. The bloc reached a record 33.83 million barrels a day last month.

West Texas Intermediate crude for January was trading at $47.90 a barrel, down 0.7%.

DSW (DSW) increased 4% after lifting its full-year outlook on the back of tighter cost controls and improved sales. The shoe retailer anticipates full-year adjusted profit between $1.35 and $1.45 a share, up from its previous range of $1.32 to $1.42.

Campbell Soup (CPB) moved higher before the bell following a better-than-expected quarter. Net income rose to 94 cents a share from 62 cents in the year-ago quarter. Adjusted earnings of $1 came in a dime above estimates. The canned-goods company anticipates full-year sales flat to up 1% and for adjusted earnings to increase by 2% to 5%. 

Burlington Stores (BURL) increased 8% after same-store sales and revenue topped analysts' consensus estimates. The discount retailer reported a 3.7% increase in same-store sales over its recent quarter, higher than anticipated 3.3% growth. Sales increased 8.9% to $1.35 billion, higher than $1.32 billion consensus.

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Barnes & Noble (BKS) climbed 5% after narrowing its second-quarter loss and reporting better-than-expected sales. The book retailer reported a loss of 29 cents a share, narrower than a loss of 36 cents in the year-ago quarter and better than an estimated loss of 39 cents. Sales declined 4% to $858.5 million, a result blamed on sluggish sales tied to the election cycle. Analysts anticipated sales of $845 million. 

Hormel Foods (HRL) rose 3% in premarket trading after reporting a solid outlook for its fiscal 2017. The owner of Skippy peanut butter expects full-year profit between $1.68 and $1.74 a share, higher than consensus of $1.68. Fiscal organic sales are expected to grow 5%, driven by growth in its grocery products unit and its Jennie-O Turkey Store business. 

Palo Alto Networks (PANW) fell more than 10% in premarket trading after reporting a mixed first quarter. The tech company earned 55 cents a share, 2 cents above estimates. Sales surged 34% to $398.1 million, though fell short of consensus by $2.1 million. The security software developer also issued weaker-than-expected guidance, targeting current-quarter sales no higher than $432 million. Analysts anticipated sales of $439 million. 

Jack in the Box (JACK)  fell 3% despite topping quarterly earnings estimates. The fast food chain earned $1.03 a share over its fourth quarter, 15 cents higher than expected. Revenue climbed 12.5% to $398.42 million, in-line with consensus.

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