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Dow Jones Industrial Average Chugs Higher Ahead of CPI, Housing Starts

Crude oil and gold are positioned lower ahead of the bell

by 6/17/2014 8:08:07 AM
Stocks quoted in this article:

The Dow Jones Industrial Average (INDEXDJX:DJI) is in the green this morning, as traders shrug off the International Monetary Fund's (IMF) downwardly revised 2014 domestic growth outlook and escalating violence in Iraq. Instead, Wall Street has turned its attention to a round of economic reports due today; specifically, the consumer price index (CPI) and core CPI, as well as housing starts will be released at 8:30 a.m. ET. Additionally, the Federal Open Market Committee (FOMC) kicks off its two-day meeting. Ahead of these events, futures on the blue-chip barometer are sitting 20 points above breakeven.

Meanwhile, "I continue to watch the Russell 2000 Index (RUT) for signs that stocks are poised to make new highs," said Schaeffer's Senior Trading Analyst Bryan Sapp. "On a relative basis, we've seen small-caps start to perk up in the past two weeks, which is good if you're bullish. Specifically, I'm keeping an eye on 1,150-1,155 on the RUT for support, with 1,200 as overhead resistance."

Plus, our Trading Topic of the Week -- 5 Reasons to Dodge Directional Risk: Lower the risk of a 100% loss. When you're playing straddles, at least one of your options will typically expire with some intrinsic value remaining.

And now, on to the numbers...

Dow Jones Industrial Average, S&P and Nasdaq futures

Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are roughly 20 points above breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 993,144 call contracts traded on Monday, compared to 473,976 put contracts. The resultant single-session put/call ratio plunged to 0.48, while the 21-day moving average remained at 0.55.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"All eyes continue to be focused on the events transpiring in Iraq -- and volatility has seen a significant spike since the turmoil began," continued Sapp. "I would keep a close eye on the oil market, as a significant spike due to the situation in Iraq could have a dramatic effect on the global economy."

Currencies and Commodities

  • The U.S. dollar index is flirting with a 0.1% lead ahead of the bell to trade at 80.51.
  • Elsewhere, crude oil is poised to extend Monday's modest retreat, with black gold pointed 0.6% lower at $105.62 per barrel.
  • Gold futures, meanwhile, are on pace to snap their six-session winning streak, with the malleable metal down 0.8% at $1,264.90 an ounce.
Currencies and commodities

Earnings and Economic Data

The latest housing starts data, plus the CPI and core CPI, will come out today. Adobe Systems (ADBE), Bob Evans Farms (BOBE), FactSet Research Systems (FDS), La-Z-Boy (LZB), and Yingli Green Energy (YGE) will announce quarterly earnings.

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