Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are soaring amid hope that a budget resolution will soon be reached. All eyes will be on Washington today, as the government enters day 10 of its shutdown. Ahead of the opening bell, Treasury Secretary Jack Lew will testify before the Senate Finance Committee. After the close, President Barack Obama and a handful of House Republican leaders will meet to discuss the deadlock. On the economic front, investors will have the chance to digest the latest weekly jobless claims, slated for release at 8:30 a.m. ET.
Elsewhere, "The S&P 500 Index (SPX) briefly slid below 1,650 yesterday, but bounced strongly off that level," reminded Schaeffer's Senior Trading Analyst Bryan Sapp. "It appears this will be support, at least on a short-term basis. Meanwhile, the 1,680 area is the overhead hurdle for the bulls to take out. It's near the declining 50-day moving average."
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are more than 117 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,141,280 call contracts traded on Wednesday, compared to 784,876 put contracts. The resultant single-session put/call ratio dropped to 0.69, while the 21-day moving average rose to 0.62.
From the Trading Floor
"The VIX made a fresh three-month high yesterday, but proceeded to sell off nearly 10% from these peaks amid the SPX's afternoon rally," continued Sapp. "Additionally, VIX option activity set an all-time record high on Tuesday. It seems that fear is a bit overblown, and any sort of positive news out of Washington could cause the 'fear trade' to unwind here, and push stocks higher."
Currencies and Commodities
Earnings and Economic Data
On today's docket are weekly jobless claims. Earnings reports from Micron Technology (MU) and Safeway (SWY) will hit the Street.
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