Real-Time Market Insights
Hot Stock News for Options Traders

Dow Jones Industrial Average Slips Ahead of Housing Data

Crude pulls back, while gold heads higher

by 4/22/2014 8:13:12 AM
Stocks quoted in this article:

The Dow Jones Industrial Average (INDEXDJX:DJI) is sitting slightly below breakeven ahead of the opening bell, with investors awaiting cues on earnings results from such big names as McDonald's Corporation (NYSE:MCD), Travelers Companies Inc (NYSE:TRV) and Comcast Corporation (NASDAQ:CMCSA). Also hitting the Street this morning is the latest data on existing home sales and the FHFA housing price index.

Elsewhere, "I'm keeping a close eye on the Russell 2000 Index (RUT) and how it reacts around the 1,140 level," commented Schaeffer's Senior Trading Analyst Bryan Sapp. "Small-caps have been a major laggard over the past two months, and the bounce we've seen in recent weeks looks very similar to the RUT's late-January bounce -- when 1,140 acted as resistance. A climb back above this technical level could be the catalyst to lift markets back near recent all-time highs."

Plus, our Trading Topic of the Week -- 5 Reasons to Dodge Directional Risk: Lower the risk of a 100% loss. When you're playing straddles, at least one of your options will typically expire with some intrinsic value remaining.

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 about 4 points below breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,068,453 call contracts traded on Monday, compared to 502,807 put contracts. The resultant single-session put/call ratio fell to 0.47, while the 21-day moving average dipped to 0.58.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"I came across a poll by Bankrate.com, and it surveyed over 1,000 households and gauged their sentiment toward the stock market," noted Sapp. "According to the data, 73% are 'not more inclined to invest in stocks.' This is the third year in a row that we've seen such a reading, and the market has been on a tear. Sentiment polls such as these suggest that the 'pain trade' in stocks remains to the upside over the long term."

Currencies and Commodities

  • The U.S. dollar index is flirting with a 0.1% drop ahead of the bell, with the currency last seen at 79.84.
  • Elsewhere, crude oil is poised to pare a portion of its recent gains, with the commodity lingering 0.4% below breakeven to trade at $103.24 per barrel.
  • Gold, meanwhile, is positioned higher in pre-market trading, with the malleable metal up 0.2% at $1,291 an ounce.
Currencies and commodities

Earnings and Economic Data

Existing home sales data is scheduled for today, along with the FHFA housing price index. Stepping up to the earnings mic are AT&T (T), MCD, TRV, United Technologies (UTX), AK Steel (AKS), Arch Coal (ACI), CMCSA, Cree (CREE), Discover Financial Services (DFS), Gilead Sciences (GILD), Harley-Davidson (HOG), Illumina (ILMN), International Game Technology (IGT), Intuitive Surgical (ISRG), Juniper Networks (JNPR), Lockheed Martin (LMT), VMware (VMW), Xerox (XRX), and Yum! Brands (YUM).

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