The Dow Jones Industrial Average (INDEXDJX:.DJI) is signaling a modestly higher start ahead of a barrage of economic data. Among the many reports on the day's docket are the producer price index (PPI) and core PPI, the latest consumer confidence index, and retail sales. Meanwhile, the Federal Open Market Committee (FOMC) kicks off its two-day meeting later today. Wall Street will be watching for clues as to when the central bank plans to taper its bond-buying purchases, following the government shutdown and a string of recent downbeat economic reports.
Elsewhere, "The NASDAQ-100 Index (NDX) stalled right at 3,400 last week," noted Schaeffer's Senior Trading Analyst Bryan Sapp. "If you go back to the tech bubble in 2000, you'll see that this level was a key support/resistance zone for some time. Apple Inc. (NASDAQ:AAPL) is such a large component of the Nasdaq that a positive reaction to its earnings may trigger a move by the NDX above the 3,400 level. This would likely suggest significantly more upside going forward."
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are sitting more than 34 points north of breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,255,763 call contracts traded on Monday, compared to 659,765 put contracts. The resultant single-session put/call ratio plunged to 0.53, while the 21-day moving average remained at 0.60.
From the Trading Floor
"I find the recent rally in gold and bonds to be pretty interesting, given the ridiculously strong price action we've also had in stocks," continued Sapp. "It's very rare for all three asset classes to rally in tandem -- and it's definitely unsustainable over the long term -- so, one of them is likely 'wrong.' A divergence in one or two of them in the next week or so should be a good signal as to the next move for stocks."
Currencies and Commodities
Earnings and Economic Data
The PPI and core PPI, S&P/Case-Shiller home price index, and the Conference Board's consumer confidence index are on today's economic docket, as well as reports on business inventories and retail sales. Meanwhile, the FOMC begins its two-day meeting. Featured on Tuesday's earnings docket are Pfizer (PFE), Baidu (BIDU), BP plc (BP), LinkedIn (LNKD), Nokia (NOK), Yelp (YELP), 3D Systems (DDD), Aetna (AET), AFLAC (AFL), Arch Coal (ACI), Buffalo Wild Wings (BWLD), Caesars Entertainment (CZR), CIGNA (CI), Cirrus Logic (CRUS), Cummins (CMI), Dreamworks Animation (DWA), Electronic Arts (EA), Genworth Financial (GNW), Gilead Sciences (GILD), Goodyear Tire & Rubber (GT), IAC/InterActiveCorp (IACI), InvenSense (INVN), JetBlue Airways (JBLU), Questcor Pharmaceuticals (QCOR), Ryland Group (RYL), Shutterfly (SFLY), Take-Two Interactive Software (TTWO), TD Ameritrade (AMTD), Thomson Reuters (TRI), UBS AG (UBS), U.S. Steel (X), Valero (VLO), Western Union (WU), and Yamana Gold (AUY).
9 Levels to Watch for Apple Inc.
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