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Dow Jones Industrial Average Builds Momentum as Earnings Season Heats Up

China's first-quarter GDP grew at a faster rate than expected

by 4/16/2014 8:11:52 AM
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It's poised to be another volatile session, with futures on the Dow Jones Industrial Average (INDEXDJX:DJI) up more than 80 points in pre-market trading. This would mark a third consecutive win for the 30-stock index. Although there is a lot for investors to digest today, earnings from a number of big names should garner the lion's share of attention. Specifically, as Schaeffer's Senior Options Strategist Tony Venosa, CMT, points out, "This morning, markets will be reacting to last night's earnings releases from Intel Corporation (NASDAQ:INTC) and Yahoo! Inc. (NASDAQ:YHOO)." Additionally, financial firm Bank of America Corp (NYSE:BAC) unveiled its results ahead of the bell.

On the economic front, housing starts and industrial production data are slated for release in the early half of the session, with the Fed's Beige Book due in the latter half. Additionally, speeches from Federal Reserve Chief Janet Yellen, Fed Governor Jeremy Stein, and Dallas Fed President Richard Fisher are on tap.

Plus, our Trading Topic of the Week -- Tips for Short-Term Trading: Make sure there aren't major volatility expectations priced in already. Use this simple tool to avoid overpaying for volatility, and keep your risk/reward profile out of "daredevil" territory.

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 more than 82 points above breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,193,003 call contracts traded on Tuesday, compared to 703,254 put contracts. The resultant single-session put/call ratio dropped to 0.59, while the 21-day moving average edged slightly higher to 0.60.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"Turnaround Tuesday saw all the major indexes finish in the green, as earnings and geopolitical concerns dominated the environment and created yet another volatile session," said Venosa. "Indexes slid lower in the morning hours, and the iShares Russell 2000 Index ETF (IWM) briefly slipped under the 110 strike, which is where peak put open interest in the April series is located."

Currencies and Commodities

  • The U.S. dollar index is down just 0.1% to 79.71 ahead of the bell.
  • Crude oil, meanwhile, is pointed 0.9% higher to trade at $103.96 per barrel.
  • Also, gold futures are up in pre-market trading, and were last seen 0.3% higher at $1,304 an ounce.
Currencies and commodities

Earnings and Economic Data

Housing starts and building permits, industrial production and capacity utilization, regularly scheduled crude inventories, and the Fed's Beige Book are due out today. American Express (AXP), International Business Machines (IBM), Google (GOOGL), BAC, Capital One Financial (COF), PNC Financial (PNC), SanDisk (SNDK), St. Jude Medical (STJ), U.S. Bancorp (USB), and United Rentals (URI) will report earnings on Wednesday.

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