Real-Time Market Insights
Hot Stock News for Options Traders

Dow Jones Industrial Average Looks to Extend Record-Setting Run

China's factory activity grew at its fastest pace in five months

by 6/2/2014 8:13:13 AM
Stocks quoted in this article:

The Dow Jones Industrial Average (INDEXDJX:DJI) is positioned modestly higher this morning, following Friday's record-setting close for the blue-chip barometer. Although last week's action was more of a slow-churn north, Schaeffer's Senior Options Strategist Tony Venosa, CMT, says, "I imagine this week's trading could see more volatility, as a slew of economic reports will be released, most notably, Friday's May employment report." In today's session, though, manufacturing data will be in focus, with Markit's purchasing managers manufacturing index (PMI) and the Institute for Supply Management's (ISM) manufacturing index due. This pair of reports follows data released over the weekend, which showed factory activity in China soared to a five-month peak.

Plus, our Trading Topic of the Week -- Trading Low-Priced Options: DO target smaller stocks with the potential for big gains. It's easy to get caught up in the excitement surrounding big-name, high-dollar stocks like Apple Inc. (NASDAQ:AAPL). Remember, though -- a small-cap stock trading at $10 per share needs to rise only 10 points to double in value.

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 about 14 points above breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,145,218 call contracts traded on Friday, compared to 638,659 put contracts. The resultant single-session put/call ratio rose to 0.56, while the 21-day moving average remained at 0.63.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"The holiday-shortened week helped propel the S&P 500 Index (SPX) to a monthly gain of 2%," continued Venosa. "The 'Sell in May and Go Away' mantra did not prove trustworthy this year."

Currencies and Commodities

  • The U.S. dollar index is flirting with a 0.2% lead ahead of the bell to trade at 80.51.
  • Elsewhere, crude oil is on the mend, with black gold up 0.2% at $102.87 per barrel.
  • Gold, meanwhile, is on pace to snap its recent losing streak, with the commodity 0.1% higher at $1,247 an ounce.
Currencies and commodities

Earnings and Economic Data

The final reading for last month's PMI and the ISM's manufacturing index are scheduled for today, along with construction spending data for April. Reporting earnings are CONN's (CONN), Guidewire Software (GWRE), Krispy Kreme Doughnuts (KKD), and Quicksilver (ZQK).

Page 1Page 2
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.