The Dow Jones Industrial Average (INDEXDJX:.DJI) is pointed modestly higher this morning, as investors wax optimistic that Congress will pass a deal to raise the debt ceiling ahead of Thursday's deadline. As Senate Majority Leader Harry Reid, D-Nev., said on Monday, the legislative chamber has made "tremendous progress" toward a resolution. Among equities in focus, a number of blue chips are slated to step into the earnings confessional today, including Intel Corporation (NASDAQ:INTC), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO).
Elsewhere, "Small-caps made a new all-time closing high yesterday," pointed out Schaeffer's Senior Equity Analyst Bryan Sapp. "Going forward, I'll be keeping an eye on the 1,090-1,100 area on the Russell 2000 (RUT), as a break above here will likely be an 'all-clear' signal for equities and risk."
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are nearly 9 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 926,472 call contracts traded on Monday, compared to 551,031 put contracts. The resultant single-session put/call ratio fell to 0.59, while the 21-day moving average remained at 0.62.
From the Trading Floor
"Despite stocks finishing higher yesterday, the VIX also closed up," continued Sapp. "Tomorrow is October VIX expiration, so perhaps this is people rolling their hedges. However, I still think there is a massive amount of distrust toward the markets, regardless of the very strong price action. This creates the potential for oversized moves to the upside on any future good news."
Currencies and Commodities
Earnings and Economic Data
On today's docket is the Empire State manufacturing survey. Scheduled to report earnings are KO, INTC, JNJ, Yahoo! (YHOO), Charles Schwab (SCHW), Citigroup (C), Domino's Pizza (DPZ), CSX Corporation (CSX), Linear Technology Corporation (LLTC), and Omnicom Group (OMC).
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