The Dow Jones Industrial Average (INDEXDJX:.DJI) is pointed lower ahead of the bell, as investors' concern over the budget stalemate in Washington resurfaces. "The fact that markets were higher on Tuesday may suggest the fear into the government shutdown was overblown," said Schaeffer's Senior Trading Analyst Bryan Sapp. "It might be a 'sell the rumor, buy the news'-type event, and, such a scenario could indicate higher prices from here. Also, the awful action in gold and silver yesterday suggests that the 'fear trade' into the shutdown was very overdone." While U.S. debt negotiations will continue to garner the lion's share of attention today, traders will also keep one eye trained on this morning's Automatic Data Processing (ADP) employment report. The data has gained increased attention amid reports that the monthly jobs number -- slated for release this Friday -- will be delayed due to the government shutdown.
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are nearly 42 points below breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,058,205 call contracts traded on Tuesday, compared to 557,455 put contracts. The resultant single-session put/call ratio fell to 0.53, while the 21-day moving average remained at 0.58.
From the Trading Floor
"So long as the Russell 2000 (RUT) continues to make fresh all-time highs, it's hard to see the rally stopping anytime soon," Sapp continued. "We broke to record levels yesterday, and the 1,060 level below looks like strong support."
Currencies and Commodities
Earnings and Economic Data
The ADP employment report and weekly crude inventories data will hit the Street today. Also, Fed Chairman Ben Bernanke is on deck to speak at 3:00 p.m. ET in St. Louis. Meanwhile, Monsanto (MON), CalAmp (CAMP), and Texas Industries (TXI) are scheduled to enter the earnings confessional.
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