The Dow Jones Industrial Average (DJI) is pointed modestly lower ahead of today's holiday-shortened session. Investor sentiment has soured, with U.S. policymakers failing to reach a budget resolution before heading home for the holidays. As Schaeffer's Senior Options Strategist Tony Venosa explains, "The S&P 500 Index (SPX) pared its weekly gain to 1.2%, thanks to big fiscal cliff-related losses on Friday. While this week will probably be quiet due to the holidays, we could see continued volatility as budget negotiations remain front and center. With time running out for a compromise, the markets will continue to be vulnerable to these discussions."

Domestic markets will finish at 1:00 p.m. EST for Christmas Eve, and will remain closed tomorrow in observance of the Christmas holiday.

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Futures on the Dow Jones Industrial Average are nearly 20 points below fair value.

Market Statistics

Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,025,621 call contracts traded on Friday, compared to 731,804 put contracts. The resultant single-session put/call ratio rose to 0.71, while the 21-day moving average stayed at 0.63.

Currencies and Commodities

• The U.S. dollar index is down 0.3% ahead of the bell, to trade at 79.42.
• Crude oil is hovering just below breakeven, with the front-month contract last seen at $88.61 per barrel.
• Elsewhere, gold futures are pointed 0.3% higher in pre-market trading, with the commodity lingering near $1,665.20 an ounce.

Earnings and Economic Data

Both the economic and earnings calendars are bare on Monday. U.S. equities markets will close at 1:00 p.m. EST for Christmas Eve.