Real-Time Market Insights
Hot Stock News for Options Traders

Dow Jones Industrial Average Rebounds Ahead of Retail Sales

Escalating violence in Iraq sends oil futures surging

by 6/12/2014 8:11:46 AM
Stocks quoted in this article:

"Selling pressure sent the Dow Jones Industrial Average (INDEXDJX:DJI) lower on Wednesday, after the World Bank cut its 2014 global growth outlook to 2.8% from 3.2%," said Schaeffer's Senior Options Strategist Tony Venosa, CMT. "However, small-caps and housing names were the biggest laggards." In today's session, the blue-chip barometer is poised to bounce back from yesterday's triple-digit drubbing, with futures pointed modestly higher ahead of the bell. In focus will be retail sales figures for May, with economists predicting a slight improvement over April's 0.1% rise. Traders will keep a cautious eye trained overseas, though, after Islamic militants seized control of two of Iraq's major cities.

Plus, our Trading Topic of the Week -- Tips for Short-Term Trading: Select your option carefully. Consider your risk appetite and forecast for the stock when choosing a strike and expiration date, since there's no room for error when your trading time frame can be measured in hours.

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 more than 31 points above breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,047,813 call contracts traded on Wednesday, compared to 525,927 put contracts. The resultant single-session put/call ratio fell to 0.50, while the 21-day moving average edged lower to 0.57.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"Through the remainder of the week, keep an eye on the 115.50 strike on the iShares Russell 2000 ETF (IWM)," continued Venosa. "Huge put open interest -- which expires at Friday's close -- resides here, and could help support the shares in the near term, and possibly create a tailwind as the contracts unwind."

Currencies and Commodities

  • The U.S. dollar index is sticking close to the flat line this morning, with the greenback last seen at 80.79.
  • Elsewhere, amid concerns over escalating violence in Iraq, crude oil has surged 1.4% to trade at $105.03 per barrel.
  • Gold futures are in the green, as well, with the commodity flirting with a 0.4% lead to linger near $1,265.60 an ounce.
Currencies and commodities

Earnings and Economic Data

Weekly jobless claims, retail sales figures, import and export prices, and business inventories will be released today. Finisar (FNSR) and Lululemon Athletica (LULU) will enter the earnings confessional.

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