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Dow Jones Industrial Average Climbs Higher Ahead of Consumer Confidence

Chinese Premier Li Keqiang suggested support for the economy

by 3/28/2014 8:13:26 AM
Stocks quoted in this article:

The Dow Jones Industrial Average (INDEXDJX:.DJI) is positioned to break its two-day losing streak, following dovish comments made by Chinese Premier Li Keqiang. Back on the homefront, a round of economic reports could also prompt some movement in the markets. Specifically, personal income and spending data and the Thomson Reuters/University of Michigan's final consumer sentiment report for March are both due out this morning. Additionally, Kansas City Federal Reserve President Esther George is slated to deliver a speech at 1:15 p.m. ET.

Looking at the charts, Schaeffer's Senior Trading Analyst Bryan Sapp notes, "The S&P 500 Index (SPX) continues to trade in a volatile, whippy fashion, but it has yet to do much technical damage to the bull trend. Yesterday morning's move lower was contained by the mid-March lows near 1,840, so I would continue to respect the bull market until that level gives way to lower prices. However, weakness in technology continues, which could be an issue for the bulls. Wednesday's break of the 50-day moving average on the Nasdaq-100 Index (NDX) was confirmed by yet another push lower."

Plus, our Trading Topic of the Week -- Tips for Buying Weekly Options: Take advantage of affordable hedging opportunities. Weekly options offer an economical way to guard your stock positions against event-related risk.

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 33 points above breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,245,466 call contracts traded on Thursday, compared to 712,028 put contracts. The resultant single-session put/call ratio fell to 0.57, while the 21-day moving average stayed at 0.59.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"The new American Association of Individual Investors (AAII) poll surfaced yesterday, and the percentage of bullish investors is currently at a two-month low," said Sapp. "There are finally signs emerging that many of the recent bulls have capitulated on their stance. This is a positive sign for contrarian bulls."

Currencies and Commodities

  • The U.S. dollar index is flirting with a 0.1% lead ahead of the bell, with the currency lingering near 80.16.
  • Elsewhere, crude oil is on pace to extend yesterday's gains, with the front-month contract up 0.4% at $101.72 per barrel.
  • Gold futures, meanwhile, are 0.1% higher to trade at $1,296 an ounce.
Currencies and commodities

Earnings and Economic Data

The latest data on personal income and outlays, plus Thomson Reuters/University of Michigan's final consumer sentiment report for March, will hit the Street today. Elsewhere, earnings reports from BlackBerry (BBRY) and Finish Line (FINL) are due out.

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