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Hot Stock News for Options Traders

Dow Jones Industrial Average Braces for a Triple-Digit Drop

Bullard warned interest rates may rise sooner rather than later

by 7/10/2014 8:13:38 AM
Stocks quoted in this article:

The Dow Jones Industrial Average (INDEXDJX:DJI) is poised to follow its European counterparts into the red, with futures pointed sharply lower ahead of the bell. Weighing on investor sentiment this morning is a steep sell-off in Portuguese banks, calling into question the health of the country's financial system. Additionally, hawkish comments regarding a rise in interest rates from St. Louis Fed President James Bullard -- which came in the wake of yesterday's release of the Federal Open Market Committee's (FOMC) latest meeting minutes -- is also stoking caution. Against this backdrop, futures on the blue-chip barometer are bracing for a 145-point plunge right out of the gate.

Plus, our Trading Topic of the Week -- Ways to Interpret Short Interest: Eye the stock's price action. By considering the stock's performance, you can determine the bears' motivations -- and see whether they've been on the right side of the trend in the past.

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 nearly 145 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 996,828 call contracts traded on Wednesday, compared to 539,015 put contracts. The resultant single-session put/call ratio fell to 0.54, while the 21-day moving average remained at 0.52.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index has jumped 0.2% ahead of the bell to trade at 80.13.
  • Elsewhere, crude oil is poised for a 10th consecutive day in the red, with futures down 0.4% to $101.34 per barrel.
  • Meanwhile, with stocks poised to tumble, gold has charged 1.4% higher to linger near $1,343.30 an ounce.
Currencies and commodities

Earnings and Economic Data

Weekly jobless claims and wholesale inventories are the key economic reports for today. After the close, an update on the Fed's balance sheet is due. Family Dollar (FDO) and PriceSmart (PSMT) will enter the earnings confessional.

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