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Dow Jones Industrial Average Futures Signal a Retreat

European stocks head lower ahead of Thursday's ECB meeting

by 6/3/2014 8:11:24 AM
Stocks quoted in this article:

After tagging both a new record intraday and closing peak yesterday, the Dow Jones Industrial Average (INDEXDJX:DJI) is indicating a lower start this morning. On today's economic agenda, monthly auto sales and factory orders are due, as well as a mid-afternoon speech from Kansas City Fed President Esther George. On the corporate front, Krispy Kreme Doughnuts (NYSE:KKD) and Dollar General Corp. (NYSE:DG) are poised to drop following their respective quarterly results.

Turning to the charts, Schaeffer's Senior Trading Analyst Bryan Sapp notes, "Despite the S&P 500 Index (SPX) trading near breakeven on Monday -- and right at all-time highs -- the Russell 2000 Index (RUT) continues to underperform other market indexes. Yesterday, it filled the gap higher from last Monday, so I would keep a close eye on the area around 1,125 -- as well as its 200-day moving average, currently located at 1,120 -- as potential regions of support going forward."

Plus, our Trading Topic of the Week -- Trading Low-Priced Options: DON'T be tempted by the cheapest option available. It may seem like a good idea to keep your entry costs low by purchasing the lowest-priced option available. However, bear in mind that the cheapest contracts are most likely to expire worthless.

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 roughly 46 points below breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 774,029 call contracts traded on Monday -- the fewest in a full session since Aug. 30 -- compared to 482,891 put contracts. The resultant single-session put/call ratio jumped to 0.62, while the 21-day moving average stayed at 0.63.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"Late last week, the new weekly sentiment polls surfaced, and showed some levels of optimism that we haven't seen in a few months," said Sapp. "This could be a sign that the current rally is getting a little long in the tooth, and a short-term correction could be in order."

Currencies and Commodities

  • The U.S. dollar index is down 0.1% ahead of the bell to trade at 80.56.
  • Crude oil, meanwhile, is eyeing a third straight day in the red, with black gold 0.1% lower at last check to linger near $102.42 per barrel.
  • Elsewhere, gold futures are up 0.2%, with the commodity hovering around $1,247 per barrel.
Currencies and commodities

Earnings and Economic Data

The latest reports on factory orders and motor vehicle sales will come out today. Ambarella (AMBA), DG, FuelCell Energy (FCEL), G-III Apparel (GIII), and Mattress Firm (MFRM) will step up to the earnings mic.

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