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Dow Jones Industrial Average Churns Lower Ahead of Quadruple-Witching Expiration

Siemens and MHI countered GE's bid for Alstom's energy division

by 6/20/2014 8:12:08 AM
Stocks quoted in this article:

Following five consecutive daily closes in the green, the Dow Jones Industrial Average (INDEXDJX:DJI) is poised for a slow start -- but still on track for a weekly win. Additionally, futures on the broader S&P 500 Index (SPX) are modestly lower, after the index notched its 21st record close in 2014 on Thursday. Although the day's economic calendar is bare, today is quadruple-witching expiration, meaning equity options, stock index futures, stock index options, and single stock futures expire -- which could create some additional volatility in the markets.

Meanwhile, on the corporate front, General Electric Company (NYSE:GE) could garner its fair share of attention after Siemens AG and Mitsubishi Heavy Industries Ltd. (MHI) offered up a joint bid for Alstom SA's energy arm. Alstom's board is set to review both GE's bid and this new proposal on Monday.

Plus, our Trading Topic of the Week -- 5 Reasons to Dodge Directional Risk: Reduce your reliance on stop-losses. With straddles, your dual directional exposure means you won't suffer major initial losses due to market volatility or adverse price movement.

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 more than 3 points below breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,206,358 call contracts traded on Thursday, compared to 561,002 put contracts. The resultant single-session put/call ratio jumped to 0.47, while the 21-day moving average fell to 0.51.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is up 0.1% ahead of the bell to trade at 80.43.
  • Elsewhere, crude oil is lingering just below the flat line, with the commodity last seen near $106.04 per barrel.
  • Although gold futures are 0.3% lower ahead of the bell, the malleable metal is maintaining its perch above the $1,300 mark -- last seen hovering around $1,310.70.
Currencies and commodities

Earnings and Economic Data

There are no significant economic reports slated for "quadruple witching" Friday. The week concludes with CarMax (KMX) and Darden Restaurants (DRI) stepping into the earnings spotlight.

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