The Dow Jones Industrial Average (INDEXDJX:.DJI) is signaling a soft start, as investors await direction on debt-ceiling negotiations and U.S. monetary policy. On the economic front, Wall Street is waiting to digest the latest reports on durable goods and new home sales, scheduled for release at 8:30 a.m. and 10:00 a.m. ET, respectively.
Meanwhile, as Schaeffer's Senior Trading Analyst Bryan Sapp noted, "The S&P 500 Index (SPX) keeps gyrating around 1,700. The index closed just south of this mark yesterday, and a further decline below this level will likely take us down to around 1,680. However, the Russell 2000 (RUT) made new all-time highs yesterday, so that's definitely something bulls can find comfort in."
Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are roughly 14 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,213,513 call contracts traded on Tuesday, compared to 684,217 put contracts. The resultant single-session put/call ratio fell to 0.56, while the 21-day moving average dropped to 0.57.
From the Trading Floor
"Bond yields got hit Monday, and that's definitely a positive for stocks -- especially given the recent correlations," said Sapp. "The 2.7% level on the 10-year note was a key area of support, and the fact that we broke down to a closing low of 2.66% yesterday could drive some money out of fixed income and into equities."
Currencies and Commodities
Earnings and Economic Data
Today's lineup of economic numbers includes durable goods, new homes sales, and weekly crude inventories. Meanwhile, AutoZone (AZO), Bed Bath & Beyond (BBBY), and Jabil Circuit (JBL) will announce earnings.
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