The Dow Jones Industrial Average (INDEXDJX:.DJI) is on pace to add to Tuesday's lofty gains, with futures pointed higher ahead of the bell. After Wall Street responded positively to yesterday's stronger-than-forecast retail sales data, today's bullish bias is being stoked by the World Bank's upwardly revised 2014 global growth outlook. Additionally, investors will have the chance to digest a raft of economic reports, including updates on inflation and factory activity, as well as the Fed's Beige Book. Meanwhile, a pair of speeches from Federal Reserve officials is slated for this afternoon. On the corporate front, Bank of America Corp (NYSE:BAC) is higher this morning, after reporting quarterly earnings that topped analysts' expectations.
Elsewhere, "Monday's low of 1,815 on the S&P 500 Index (SPX) is interesting, as it is just a stone's throw from the former highs of late 2013," said Schaeffer's Senior Trading Analyst Bryan Sapp. "Going forward, I'm looking for a break of the 1,810-1,850 range to signal the next big market move."
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are sitting roughly 36 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,394,833 call contracts traded on Tuesday, compared to 726,999 put contracts. The resultant single-session put/call ratio fell to 0.52, while the 21-day moving average stayed at 0.53.
From the Trading Floor
"Overnight Monday, we saw a big increase in CBOE Volatility Index (INDEXCBOE:VIX) January call open interest, so this could be a major reason for the pop in the VIX that day," continued Sapp. "In the recent past, the times when we see massive increases in VIX call open interest have been the best times to buy stocks, as it signals when fear is at a short-term high."
Currencies and Commodities
Earnings and Economic Data
The producer price index (PPI) and core PPI, the Empire State manufacturing index, weekly crude inventories, and the Fed's Beige Book will hit the Street today. BAC and Fastenal (FAST) are scheduled to post earnings.
The Case for Big Moves in IWM and QQQ
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