The Dow Jones Industrial Average (INDEXDJX:.DJI) is sitting comfortably higher ahead of the bell, on the heels of better-than-expected manufacturing data from the euro zone and China. Uncertainty about any military action in Syria lingers, after congressional leaders opted to table any further discussion on the matter until next Monday, when they return from recess. On the economic calendar today is the latest manufacturing data from the Institute for Supply Management, along with construction spending data from July.
"Again, I'm watching the 1,640, 1,625, and 1,600 levels on the S&P 500 Index (SPX)," said Schaeffer's Senior Trading Analyst Bryan Sapp. "This obvious issue hanging over the market right now is the situation in Syria. The CBOE Market Volatility Index (VIX) is currently at two-month highs, and reflects concern about what might happen as a result of the conflict."
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are sitting nearly 87 points above fair value.
The Chicago Board Options Exchange (CBOE) saw 696,974 call contracts traded on Friday, compared to 470,454 put contracts. The resultant single-session put/call ratio rose to 0.67, while the 21-day moving average edged up to 0.60.
From the Trading Floor
"As noted last week, sentiment polls came in very low this week, indicating that many investors are in the bear camp," Sapp went on. "Should the tensions regarding Syria blow over quickly and not escalate into a major global event, I believe that fear is in place to cause a rally. Whether that turns out to be short-lived or longer-term remains to be seen, but there's no denying the worries right now."
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Earnings and Economic Data
The ISM manufacturing index, the purchasing managers manufacturing index (PMI), and the construction spending figures for July are slated for release today. Reporting earnings are Guidewire Software (GWRE) and H&R Block (HRB).
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