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Dow Jones Industrial Average Struggles Ahead of Economic, Earnings Reports

Global stocks drop on disappointing Chinese manufacturing data

by 1/23/2014 8:09:27 AM
Stocks quoted in this article:

"Markets continued their choppy, sideways action on Wednesday, and the Dow Jones Industrial Average (INDEXDJX:.DJI) posted a modest loss thanks to a disappointing earnings reaction to International Business Machines Corp. (NYSE:IBM)," commented Schaeffer's Senior Options Strategist Tony Venosa, CMT. The 30-stock index is positioned to extend this negative price action this morning, with futures pointed lower ahead of the bell.

Investors will have the chance to digest a round of economic data, with updates on unemployment, housing, and factory activity on tap. Additionally, "A slew of interesting earnings releases -- including McDonald's Corporation (NYSE:MCD), Netflix, Inc. (NASDAQ:NFLX), and Western Digital Corp (NASDAQ:WDC) -- could affect today's market," noted Venosa.

Plus, our Trading Topic of the Week -- Trading Stock Trends: Don't be afraid to buy plenty of time. When you're playing trends, go ahead and spring for that longer-term option. You'll be buying valuable time for the expected stock move to play out in full.

And now, on to the numbers...

Dow Jones Industrial Average, S&P and Nasdaq futures

Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are sitting more than 46 points south of breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,407,929 call contracts traded on Wednesday, compared to 734,749 put contracts. The resultant single-session put/call ratio fell to 0.52, while the 21-day moving average remained at 0.53.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S dollar index has shed 0.4% ahead of the bell, with the currency last seen at 80.82.
  • Elsewhere, crude oil is continuing its trek into annual-high territory, with crude for March delivery up 0.3% at $96.97 per barrel.
  • Gold futures, meanwhile, are on the mend, with the front-month contract 0.8% higher at $1,248.60 an ounce.
Currencies and commodities

Earnings and Economic Data

Weekly jobless claims, the holiday-delayed crude inventories, existing home sales, and January's preliminary reading of the purchasing managers manufacturing index (PMI) will be released today. Companies reporting earnings include MCD, Microsoft (MSFT), Starbucks (SBUX), Compuware (CPWR), Discover Financial Services (DFS), E*TRADE (ETFC), Fifth Third Bancorp (FITB), Fairchild Semiconductor (FCS), International Game Technology (IGT), Intuitive Surgical (ISRG), Juniper Networks (JNPR), Lockheed Martin (LMT), MGIC Investment (MTG), Southwest Airlines (LUV), Union Pacific (UNP), and United Continental Holdings (UAL).

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